Finding 562140 (2024-008)

Material Weakness
Requirement
H
Questioned Costs
$1
Year
2024
Accepted
2025-06-02

AI Summary

  • Core Issue: The Institution filed its No Cost Extension late, leading to an unapproved extension of the performance period.
  • Impacted Requirements: The performance period ended on June 30, 2023, making December 2023 student distributions unallowed.
  • Recommended Follow-Up: Review filing procedures to ensure timely submissions and avoid future unallowed activities.

Finding Text

Period of Performance: Untimely Filing of No Cost Extension On October 25, 2023, the Institution submitted its No Cost Extension to extend the period of performance of HEERF Student Aid Portion Fund until December 31, 2023. The request, however, was not accepted by the ED due to late filing. As a result, the Institution’s performance period was only until June 30, 2023, and subsequent distributions to 13 students in December 2023 totaling $41,146 were considered unallowed activities.

Corrective Action Plan

The Institution acknowledges the finding regarding the late submission of the No Cost Extension (NCE) for HEERF Student Aid funds, which resulted in the ED not approving the extension and subsequently categorizing the $41,146 in distributions to 13 students as unallowed activities. The delay in submitting the NCE request was due to limited guidance and a lack of awareness regarding the June 30, 2023, filing deadline. The Institution relied heavily on the Program Management Analyst for HEERF-related guidance, and amid the evolving nature of HEERF regulations, the deadline was not effectively communicated or acted upon in time. We accept responsibility for this oversight and are committed to ensuring full compliance with all future grant-related requirements. 1. Coordination with ED for Resolution & Fund Return Process: The Institution will proactively engage with the U.S. Department of Education (ED) to determine the proper process for returning the $41,146 in overdistributed HEERF Student Aid funds. We will promptly comply with any official request from ED regarding the return of funds, ensuring timely resolution of this issue. A designated financial aid compliance officer will oversee communication with ED to track all requirements and submission deadlines. 2. Strengthening Grant Compliance Procedures: A compliance checklist will be introduced for all future grant performance period extensions to ensure deadlines are met well in advance. The Institution will implement a Grant Compliance Tracking System to monitor: a. Key deadlines for grant extensions, reporting, and compliance filings. b. Required actions for all active federal grant awards to ensure timely submissions. 3. Enhanced Staff Training & Internal Oversight: The Institution will provide training to financial aid and grant management staff on: a. Federal grant regulations and performance period compliance. b. How to track and process NCE filings in a timely manner. c. Best practices for engaging with ED to ensure compliance and funding oversight. Staff will also undergo annual refresher training on Title IV and HEERF grant compliance. 4. Improved External Communication & Regulatory Monitoring a. The Institution will establish direct communication channels with ED representatives and external regulatory advisors to ensure awareness of any changes in grant policies, extensions, and reporting requirements. b. Monthly compliance review meetings will be held internally to verify that all federal grant deadlines are on track. By implementing these corrective actions, the Institution is confident that future federal grant extensions and reporting requirements will be met on time, ensuring continued compliance with all federal funding regulations. We appreciate the recommendations provided and are committed to maintaining strong financial oversight and accountability. Personnel Responsible for Implementation: Danielle Skinner Position of Responsible Personnel: President Expected Date of Implementation: Immediate

Categories

Questioned Costs Period of Performance Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $832,607
84.268 Federal Direct Student Loans $495,733
84.425 Education Stabilization Fund $330,146