Finding 389649 (2023-006)

Significant Deficiency
Requirement
GL
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300547
Organization: Felician University (NJ)

AI Summary

  • Core Issue: The University failed to spend any funds on required outreach to financial aid applicants as mandated by the American Rescue Plan.
  • Impacted Requirements: Compliance with new ARP requirements for using Higher Education Emergency Relief Fund for public health practices and financial aid outreach.
  • Recommended Follow-Up: Establish a process to review grant agreements and ensure understanding of all reporting and earmarking requirements to avoid future noncompliance.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund – Higher Education Emergency Relief Fund – Student Portion, and Minority Serving Institutions Assistance Listing Number: 84.425E and 84.425L Award Period: July 01, 2022 – June 30, 2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: American Rescue Plan (ARP) created two new requirements that a portion of Higher Education Emergency Relief Fund (HEERF) III institutional funds must be used (a) to implement evidence-based practices to monitor and suppress coronavirus in accordance with public health guidelines; and (b) conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment due to the recent unemployment of a family member or independent student, or other circumstances, described in section 479A of the Higher Education Act. Spending under these categories indicates whether an institution has spent funds under a required use of funds established under the ARP. Condition: During our testing, it was noted the University did not spend any funds on direct outreach to financial aid applicants, as outlined per the terms of the agreement. Questioned costs: None. Context: While testing reporting and earmarking requirements, we noted that there were no funds spent on direct outreach to financial aid applicants. Cause: The University was not aware of all the earmarking requirements. Effect: The University is not in compliance with all provisions of the grant agreement. Repeat finding: No. Recommendation: We recommend the University implement a process to ensure all grant agreements are reviewed and there is a clear understanding of any reporting and/or earmarking requirements to limit the risk of noncompliance. Views of responsible officials: Management agrees with the finding.

Corrective Action Plan

Education Stabilization Fund – Higher Education Emergency Relief Fund –Student Portion, and Minority Serving Institutions – Assistance Listing No. 84.425E, 84.425L Recommendation: We recommend the University implement a process to ensure all grant agreements are reviewed and there is a clear understanding of any reporting and/or earmarking requirements to limit the risk of noncompliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: While the requirement to notify financial aid applicants of their right to a recalculation of financial aid through professional judgment was satisfied and documented, we acknowledge the oversight in not reporting associated expenses. To address this, Finance and Financial Aid collaborated to enhance our process for reviewing all grant agreements meticulously. This includes ensuring a clear understanding of reporting and earmarking requirements to maintain compliance and transparency moving forward. Name(s) of the contact person(s) responsible for corrective action: Shalini Patel, Controller and Cynthia Montalvo, Assistant Director of Enrollment Management. Planned completion date for corrective action plan: June 30th 2024.

Categories

Matching / Level of Effort / Earmarking Reporting Significant Deficiency

Other Findings in this Audit

  • 389637 2023-001
    Material Weakness Repeat
  • 389638 2023-001
    Material Weakness
  • 389639 2023-002
    Significant Deficiency Repeat
  • 389640 2023-002
    Significant Deficiency Repeat
  • 389641 2023-003
    Material Weakness Repeat
  • 389642 2023-003
    Material Weakness Repeat
  • 389643 2023-004
    Significant Deficiency
  • 389644 2023-004
    Significant Deficiency
  • 389645 2023-005
    Significant Deficiency
  • 389646 2023-005
    Significant Deficiency
  • 389647 2023-005
    Significant Deficiency
  • 389648 2023-005
    Significant Deficiency
  • 389650 2023-006
    Significant Deficiency
  • 389651 2023-007
    Significant Deficiency
  • 966079 2023-001
    Material Weakness Repeat
  • 966080 2023-001
    Material Weakness
  • 966081 2023-002
    Significant Deficiency Repeat
  • 966082 2023-002
    Significant Deficiency Repeat
  • 966083 2023-003
    Material Weakness Repeat
  • 966084 2023-003
    Material Weakness Repeat
  • 966085 2023-004
    Significant Deficiency
  • 966086 2023-004
    Significant Deficiency
  • 966087 2023-005
    Significant Deficiency
  • 966088 2023-005
    Significant Deficiency
  • 966089 2023-005
    Significant Deficiency
  • 966090 2023-005
    Significant Deficiency
  • 966091 2023-006
    Significant Deficiency
  • 966092 2023-006
    Significant Deficiency
  • 966093 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $12.63M
84.063 Federal Pell Grant Program $5.11M
84.031 Higher Education_institutional Aid $1.61M
84.007 Federal Supplemental Educational Opportunity Grants $358,027
84.425 Education Stabilization Fund $200,285
47.076 Education and Human Resources $141,205
84.033 Federal Work-Study Program $125,732
11.028 Connecting Minority Communities Pilot Program $37,359
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $9,032