Finding 58615 (2022-001)

Finding 2022-001 ? HEERF Student Grant Disbursements Cluster: N/A Federal Agency: Department of Education Assistance Listing Program Title and Number: COVID-19 Education Stabilization Fund ? 84.425E Award Name: Higher Education Emergency Relief Fund ? Student Aid Portion Award Identifying Number: P425E205304-20B Award Year: Academic Year 2021-2022 Criteria: The University is subject to compliance requirements pertaining to the disbursement of grants to students using the Student Aid portion of Higher Education Emergency Relief Funds (?HEERF?). The UM-Flint campus established policies and procedures in line with the requirements of The Coronavirus Aid, Relief, and Economic Security Act (?CARES?), Coronavirus Response and Relief Supplemental Appropriations Act (?CRRSAA?), and American Rescue Plan (?ARP?). Students applied for HEERF funds, and policies generally awarded funds based on the amount applied for within the application, the Estimated Family Contribution (?EFC?) per a student?s Free Application for Federal Student Aid information, or a flat amount for students who applied and did not have an EFC on file. On the application, the student could indicate the amount and what type of expenses the funds would cover, and the student was awarded the lesser of the amount based on his or her EFC or the amount needed to cover the expenses claimed in the application. Condition: While reviewing underlying support for a sample of 25 students at the UM-Flint campus, we identified two students That received an incorrect amount of funds based on their applications and EFCs. One student applied for funds based on expenses of an amount greater than the eligible EFC amount, and therefore should have received the amount allowed based on the student?s EFC in accordance with the policy (i.e., the lesser amount of the two). However, the student received $500 more than what was permitted for the student?s EFC based on the policies and procedures established. The other student applied for a lesser amount than what would be awarded based on the student?s EFC, but instead received the EFC amount, resulting in an additional $374 awarded to the student. Questioned Costs: $874 Cause: Prior to September 27, 2021, the UM-Flint campus management manually populated a spreadsheet that determined what amount students would be eligible to receive based on either their application or EFC. Both students identified were awarded funds in July and September 2021, and controls to ensure accurate distribution of such funds did not operate as designed during this period. Beginning September 27, 2021, management began using Excel formulas to calculate amounts for the awards to students, thereby reducing the risk of manual error from this date forward. Effect: Incorrect amounts were distributed to certain students. Recommendation: The University should continue to ensure their revised process put in place in September 2021 is operating effectively as it relates to the awarding of the remaining HEERF funds. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.