Finding 588386 (2023-001)

Finding 2023-001 Reporting – Significant Deficiency in Internal Control Federal Program: COVID-19 Higher Education Emergency Relief Fund Federal Assistance Listing Number: 84.425F COVID-19 Higher Education Emergency Relief Fund-Institutional Aid Federal Agency: Department of Education Award Year: July 1, 2022 – June 30, 2023 Criteria: All institutions of higher education that received HEERF grant awards are required to submit a HEERF Annual Report. The Year Three report covering January 1, 2022, through December 31, 2022 was due on March 24, 2023. Condition and Context: Management failed to submit the Year Three report before the reporting period closed. While there were no drawdowns or expenditures to report in Year Three, the College was still required to provide enrollment data by ethnicity, gender, age, academic level, and Pell Grant status. The $917K of HEERF expenditures on the June 30, 2023 SEFA were all received and expended in 2023 and therefore will be reflected on the Year Four report in 2024. Isolated or Systemic: Isolated. Cause and Effect: The College’s control failed in ensuring that required reports were submitted timely. Questioned Costs: None noted. Whether the sampling was a statistically valid sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend that the College enhance its internal controls to ensure all required reports are submitted timely. View of Responsible Officials: Management has maintained communication with the ESF Reporting Helpdesk. Year Three remains closed at this time but should it be reopened Management will provide the additional data requested. In June 2023, the remaining grant funds were drawn down and a quarterly report was both submitted to the Department of Education and posted to the College’s website. The Fourth Annual Report covering the calendar 2023 reporting period will be due in early 2024. This will be the final report as both the Emergency Financial Aid and Institutional grants are now closed. Management will complete and submit the annual report when the website is functional.