Finding 597199 (2022-003)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-27
Audit: 22866
Organization: Loras College (IA)

AI Summary

  • Core Issue: The College failed to submit accurate and timely quarterly reports for the COVID-19 Education Stabilization Fund, leading to discrepancies and late postings.
  • Impacted Requirements: Reports did not include required data on student eligibility and aid distribution, and were submitted after the 10-day deadline.
  • Recommended Follow-Up: Strengthen internal controls for report preparation and review, ensuring all supporting documents are available and deadlines are met.

Finding Text

Finding 2022-003: COVID-19 Education Stabilization Fund, Higher Education Emergency Relief Funds Reporting Program: COVID-19 Education Stabilization Fund, Higher Education Emergency Relief Funds Assistance Listing Number: 84.425E & F Federal Agency: U.S. Department of Education Federal Award Identification Number: P425E200665 & P425F201753 Federal Award Year: June 30, 2022 Repeat Finding: 2021-003 Criteria: The U.S. Department of Education (the Department) has issued guidance for the Education Stabilization Funds (ESF) Higher Education Emergency Relief Funds (HEERF) for quarterly reporting for all sections (a)(1), (a)(2), (a)(3) and (a)(4) that specifies the information to be reported and also that the deadline to submit all quarterly reports, student and institutional, is within 10 days of the end of the calendar quarter. Condition/Context: For the Institutional portion June 30, 2021 report selected for testing, the auditor noted that the report did not agree to the underlying support, specifically the categories of replacing lost revenue from auxiliary sources and other uses. Additionally, the June 30, 2021 report was posted to the College's website after the deadline of 10 days after calendar quarter end. Subsequently, the College corrected the June 30, 2021 institutional quarterly report and posted it to the College?s website and the auditor reviewed. For the student portion June 30, 2021, August 31, 2021 and March 31, 2022 quarterly reports selected for testing the College did not include two required items ? 1) the number of students eligible to receive emergency financial aid grants and 2) the total number of students who received the emergency financial aid grants. Additionally, the College posted the March 31, 2022 report two days after the reporting deadline. Subsequently, the College corrected the June 30, 2021, August 31, 2021 and March 31, 2022 student quarterly reports to add the required items and posted them to the College?s website and the auditor reviewed. Questioned Costs: Not applicable. Cause: The College?s internal controls related to the preparation and review of the quarterly reports were not effective in catching the errors in the reporting or ensuring that reporting was completed timely. Effect: The quarterly reports included incorrect and missing information and were posted to the College?s website late. Recommendation: We recommend the College review its internal controls over the preparation and review of the quarterly reports. The College should have supporting documents available for the preparer and reviewer of the quarterly and annual reports to ensure that reporting is done accurately and timely. Management?s Response: Management has reviewed internal controls related to quarterly reporting for both institutional and student funds. Requirements have been reviewed by personnel responsible for the preparation of quarterly reports as well as personnel responsible for review of the reports. Management has assigned personnel separate from those responsible for preparation of the quarterly reports to review supporting documents and verify the accuracy of the reporting. Procedures have been put into place to ensure timely reporting. In addition, all reports posted have been revised to include all requirements and report accurate information.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20757 2022-003
    - Repeat
  • 20758 2022-003
    - Repeat
  • 20759 2022-002
    Significant Deficiency Repeat
  • 597200 2022-003
    - Repeat
  • 597201 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.43M
84.038 Federal Perkins Loan Program $2.24M
84.425 Education Stabilization Fund $1.67M
84.063 Federal Pell Grant Program $1.43M
84.007 Federal Supplemental Educational Opportunity Grants $196,904
84.033 Federal Work-Study Program $149,836
47.076 Education and Human Resources $148,419
45.162 Promotion of the Humanities_teaching and Learning Resources and Curriculum Development $26,420
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,056