Finding 42955 (2022-001)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 40194
Organization: Flagler College, Inc. (FL)

AI Summary

  • Core Issue: The College did not allocate funds from the Education Stabilization Fund as required, focusing solely on lost revenue instead of earmarked uses.
  • Impacted Requirements: The College failed to comply with the ARP earmarking requirements for implementing health practices and outreach to financial aid applicants.
  • Recommended Follow-Up: The College should enhance monitoring of grant earmarking requirements to ensure compliance and avoid potential fund returns.

Finding Text

Federal agency: Department of Education Federal program title: Education Stabilization Fund Assistance Listing Numbers: 84.425F ? Higher Education Emergency Relief Fund (HEERF) Institutional Portion Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Other Matters Finding related to Compliance within Uniform Guidance and Significant Deficiency in Internal Controls over Compliance. Criteria or specific requirement: Under section 2003(5) of the American Rescue Plan Act of 2021 (ARP) (Pub. L. 117-2) (supplemental award or grant) by the U.S. Department of Education, Recipient must use a portion of their institutional funds received under this supplemental award to (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 of 1965, as amended (HEA) (20 USC ? 1087tt). Condition: During our testing of institutional disbursements for the College, we noted that all the institutional funding was allocated to lost revenue, and none was allocated to the earmarking requirement noted above. Questioned costs known: Unknown. Context: During our testing, we noted that the College was not in compliance with the ARP Earmarking requirements. Cause: The policies and procedures of the College did not ensure that grant earmarking requirements were accurately met. Effect: Non-compliance with federal regulations could lead to funds being required to be returned or refunded in order to meet the earmarking requirement. Repeat Finding: No. Recommendation: We recommend that the College monitor the earmarking requirements of all grants, to ensure they stay in compliance. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Management has addressed their corrective action plan in a separately issued letter.

Corrective Action Plan

2022-001 Educational Stabilization Fund ? Earmarking ? HEERF earmarking requirements. Recommendation: We recommend that the College monitor the earmarking requirements of all grants, to ensure compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The finding was caused by improper reporting of items earmarked per requirements. Accounting personnel will review grant/award contracts and associated standards in order to create necessary tracking documents to be submitted to individual responsible for grant/award reporting. Flagler is in the process of hiring a dedicated Grants & Compliance Manager that will be responsible for organizing and tracking requirements moving forward. Name(s) of the contact person(s) responsible for corrective action: Stacey Matthews and Tiffany Moore Planned completion date for corrective action plan: March 23, 2023 reporting on earmarking correction; implementation upon next award

Categories

Matching / Level of Effort / Earmarking Significant Deficiency

Other Findings in this Audit

  • 42954 2022-002
    Significant Deficiency Repeat
  • 42956 2022-002
    Significant Deficiency Repeat
  • 619396 2022-002
    Significant Deficiency Repeat
  • 619397 2022-001
    Significant Deficiency
  • 619398 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $13.43M
84.063 Federal Pell Grant Program $3.75M
84.425 Education Stabilization Fund $3.65M
84.038 Federal Perkins Loan Program $197,520
84.007 Federal Supplemental Educational Opportunity Grants $143,365
84.033 Federal Work-Study Program $100,165
11.419 Coastal Zone Management Administration Awards $80,768
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $41,492
15.945 Cooperative Research and Training Programs ? Resources of the National Park System $14,693
45.129 Promotion of the Humanities_federal/state Partnership $3,000