Finding Text
Michigan Reconnect Expansion Refund Calculation Error. Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Assistance Listing Number 21.027; Award Number SLFRP0127. Criteria. As outlined in State of Michigan's Michigan Reconnect Expansion program guide, the Reconnect scholarship program is a last-dollar scholarship, which is equal to the difference between in-district tuition and fees (i.e., tuition, contact hours and mandatory fees) and any Pell Grant and any state tuition-restricted scholarships or awards that a student receives following the packaging order. Condition. The student development fees and the technology fees that were required to be included in the scholarship refund calculation were missed for one student. Cause. The College does not have a formal review process where a second individual looks over the refund calculation to ensure errors are caught before the returns are processed. Effect. As a result of this condition, one refund calculation for the grant was incorrect, resulting in an underpayment of $752. It is our understanding that on December 16, 2024, the College refunded this amount to the Michigan Department of Treasury for those affected by this calculation error. Questioned Costs. No costs were required to be questioned as a result of this finding insomuch as our testing did not reveal any unallowed costs over the $25,000 threshold. Recommendation. Management has already taken appropriate corrective action by updating the returns for the student impacted by the refund calculation error. However, we recommend that the College implement a review process to ensure that any correction is being reviewed by an independent second individual. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.