Finding Text
2022-001 - Grant Funds Used for Executive Salaries and Benefits Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. COVID-19 - Higher Education Emergency Relief Fund - Institutions of Higher Education - Institutional ("HEERF"), Assistance Listing Number 84.425F, Award Number P425F204485. COVID-19 - HEERF - Institutions of Higher Education - Student Aid, Assistance Listing Number 84.425E, Award Number P425E201660. COVID-19 - HEERF - Institutions of Higher Education - Strengthening Institutions Programs, Assistance Listing Number 84.425M, Award Number P425M200871. Criteria. The Compliance Supplement states that a College cannot use HEERF grant funds for executive salaries and benefits. Condition. HEERF grant funds were used for a portion of five executives' salaries and benefits. Cause. The College was unaware that grant funds could not be used for executive salaries and benefits. Effect. As a result of this condition, the College used HEERF grant funds for unallowable costs. Questioned Costs. Questioned costs totaled $34,007 as a result of this finding. Recommendation. We recommend that the College implement procedures to ensure grant funds are only used on allowable costs. View of Responsible Officials. Management was unaware that the grant funds could not be used for executive salaries and benefit, and has prepared a Corrective Action Plan.