Finding Text
MATERIAL WEAKNESS 2022-009 Education Stabilization Fund ? Higher Education Emergency Relief Fund ? 84.425 ? Activities Allowed or Unallowed Criteria or specific requirement Institutions may not condition the receipt of financial aid grants to students on continued or future enrollment in the institution and may not require a student to consent to the application of the financial aid grants to satisfy a student?s outstanding account balance as a condition of receipt of or eligibility for the financial aid grant. In addition, as it relates to expenditures under HEERF II and III, or for additional emergency financial aid grants made using other HEERF grant funds, the institution should not place any restrictions on the expenditure of those funds beyond what is allowed per statute, and the institution should not reimburse itself for any costs or expenses previously issued to students. Condition Students were awarded HEERF aid in June 2022 based upon their outstanding account balance, and they were not given the option to take the disbursement as anything other than a credit to their account. Cause The College was not aware that they could not require students to accept the aid as an application towards their outstanding account balance. Effect Students were restricted as to method of disbursement and expenditure of the funds. Context The total amount of June student aid HEERF awards totaled to $316,206. Recommendation We recommend that the institution carefully review guidance regarding new funding sources in order to ensure that all applicable requirements are being met. Views of responsible officials and planned corrective actions See corrective action plan.