Finding 49832 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-19
Audit: 42091
Organization: Adler Graduate School (MN)

AI Summary

  • Core Issue: The School failed to properly review and post required reports on the use of COVID-19 education funds, leading to a significant deficiency in compliance.
  • Impacted Requirements: Reporting obligations under the CARES Act and CRRSAA were not met, as the School lacked evidence of timely and accurate reporting.
  • Recommended Follow-Up: Assign a dedicated individual to oversee HEERF reporting requirements and ensure compliance with all relevant regulations.

Finding Text

Finding 2022-001: Significant Deficiency in Reporting Federal Program - COVID-19 ? Education Stabilization Fund Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable AL Number - 84.425 Federal Award Identification Numbers - P425E205608, P425F205088 and P425N200710 Federal Award Year - June 30, 2022 Repeat of Prior Year Finding 2021-001 Criteria: Section 18004(e) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and Section 314(e) of the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) requires institutions receiving funds under the respective sections, to submit a report to the Secretary describing the use of funds distributed from the Higher Education Emergency Relief Funds (HEERF). While the American Rescue Plan Act (ARP) does not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, the Department of Education exercises this reporting authority under 2 CFR Section 200.328 and 2 CFR section 200.329. Condition: The School was unable to verify that the quarterly public reports for both the student aid portions and institutional portions were properly reviewed and approved by an appropriate independent person and posted to the School?s website, or updated, on a timely basis. Questioned Costs: Not applicable. Context: Not applicable. Cause: The School did not retain verifiable evidence to support adherence to report review and approval requirements or reporting deadlines in accordance with HEERF requirements. Effect: The School did not provide the public with timely, accurate data related to student aid and institutional expenditures. Recommendation: The School should assign an individual to monitor reporting requirements of HEERF awards to ensure the School is in compliance. Management's Response: Management agrees with the finding and will implement enhanced procedures to comply with the requirement of Section 18004(e) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Section 314(e) of the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) and 2 CFR sections 200.328 and 200.329.

Categories

Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 49828 2022-001
    Significant Deficiency Repeat
  • 49829 2022-002
    -
  • 49830 2022-001
    Significant Deficiency Repeat
  • 49831 2022-002
    -
  • 49833 2022-002
    -
  • 49834 2022-003
    Significant Deficiency
  • 49835 2022-003
    Significant Deficiency
  • 49836 2022-003
    Significant Deficiency
  • 626270 2022-001
    Significant Deficiency Repeat
  • 626271 2022-002
    -
  • 626272 2022-001
    Significant Deficiency Repeat
  • 626273 2022-002
    -
  • 626274 2022-001
    Significant Deficiency Repeat
  • 626275 2022-002
    -
  • 626276 2022-003
    Significant Deficiency
  • 626277 2022-003
    Significant Deficiency
  • 626278 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.40M
84.425 Education Stabilization Fund $107,825