Finding Text
Significant Deficiency ? Education Stabilization Fund Reporting Program: COVID-19 Education Stabilization Fund Assistance Listing Numbers: 84.425E, 84.425F Federal Award Identification Number: P425E204183, P425F203774 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2022 Condition: During our review of the required quarterly expense reports, we noted the following instances of non-compliance: A. There were no reports uploaded to the College?s website for the first three quarters of the fiscal year until May 2023. B. In the fourth quarter quarterly budget and expenditure report, the total amount of awards received for each HEERF award did not agree to the funds awarded by the Department of Education. C. Student grants awarded during the fourth quarter that were reported on the fourth quarter report uploaded to the College?s primary website did not reconcile to the College?s underlying accounting records. D. The total amount of HEERF student funds remaining to be disbursed was reported as zero in the fourth quarter submission while there is approximately $6,000 remaining to be awarded. Criteria: The U.S. Department of Education (the Department) has issued guidance for the Education Stabilization Funds (ESF) HEERF for quarterly reporting for all sections (a)(1), (a)(2), (a)(3) and (a)(4) that requires the institution prepare a report for each quarter for funds that are drawn down and disbursed/spent. The reports are to be posted on the institution?s website within 10 days of the calendar quarter end. Instructions are included in each form to assist in completion which includes reporting zero expenditures if there are no such expenditures to report. Context: We reviewed the College?s website and each of the report submissions of expenditures of funds and noted the discrepancies as described above. Our sample is statistically valid as we tested the entire population. Cause: The College did not have procedures in place to comply with this reporting requirement during the fiscal year. Effect: Institutional awards were underreported by $144,578 and Student awards were underreported by $129,944. Users were also not timely notified of expenditures reported during the first three quarters. Questioned costs: Not applicable Recommendation: The College should establish procedures to ensure reporting requirements are communicated to staff involved with federal reporting at the inception of the award and during periods of transition. Views of Responsible Officials and Planned Corrective Actions: The College agrees with this recommendation and will ensure that staff with reporting compliance responsibilities are appropriately trained prior to award execution and during periods of transition.