Finding 599598 (2022-011)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2023-05-04
Audit: 23264
Organization: Cleary University (MI)

AI Summary

  • Core Issue: The University failed to conduct required outreach to financial aid applicants regarding adjustments due to unemployment and did not document the use of HEERF III funds appropriately.
  • Impacted Requirements: Noncompliance with HEERF III guidelines on outreach and documentation, leading to significant deficiencies in internal controls.
  • Recommended Follow-Up: Management should review grant compliance requirements upon receipt to ensure all obligations are met and documented properly.

Finding Text

2022-011 ? Institutional Higher Education Emergency Relief Funds III Student Outreach Requirement Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Earmarking). Program. COVID-19 - Higher Education Emergency Relief Fund; Assistance Listing Number 84.425F. Criteria. The University is required to use a portion of Higher Education Emergency Relief Funds III (HEERF) institutional funds to (a) implement evidence-based practices to monitor and suppress coronavirus in accordance with public health guidelines; and (b) conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment due to the recent unemployment of a family member or independent student, or other circumstances, described in section 479A of the HEA. The University must also document how the amount of the HEERF grant spent on these two required activites was reasonable and necessary given the unique needs and circumstances of the University. Condition. The University did not use a portion of the institutional HEERF III grant to conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment due to the recent unemployment of a family member or independent student, or other circumstances, described in section 479A of the HEA. The University also did not document how the amount of the HEERF grant spent on these two required activities was reasonable and necessary given the unique circumstances of the University. Cause. This condition appears to have been caused by management lacking the appropriate knowledge and understanding of the grant requirements. Additionally, there was not appropriate oversight of accounting personnel involved in the grant management to ensure grant requirements were being satisfied. Effect. As a result of this condition, the University did not fully comply with the requirements of the HEERF III grant. Questioned Costs. No costs have been questioned as a result of this finding inasmuch no unallowable costs have been identified. Recommendation. We recommend that management review the compliance requirements of each grant when received to ensure compliance with such requirements. View of Responsible Officials. Management agrees with the finding. See corrective action plan.

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 23136 2022-003
    Significant Deficiency
  • 23137 2022-004
    Significant Deficiency
  • 23138 2022-005
    Significant Deficiency
  • 23139 2022-006
    Significant Deficiency
  • 23140 2022-003
    Significant Deficiency
  • 23141 2022-004
    Significant Deficiency
  • 23142 2022-005
    Significant Deficiency
  • 23143 2022-006
    Significant Deficiency
  • 23144 2022-003
    Significant Deficiency
  • 23145 2022-004
    Significant Deficiency
  • 23146 2022-005
    Significant Deficiency
  • 23147 2022-006
    Significant Deficiency
  • 23148 2022-003
    Significant Deficiency
  • 23149 2022-004
    Significant Deficiency
  • 23150 2022-005
    Significant Deficiency
  • 23151 2022-006
    Significant Deficiency
  • 23152 2022-007
    Material Weakness
  • 23153 2022-008
    Significant Deficiency
  • 23154 2022-009
    Significant Deficiency
  • 23155 2022-010
    Significant Deficiency
  • 23156 2022-011
    Significant Deficiency
  • 23157 2022-007
    Material Weakness
  • 23158 2022-008
    Significant Deficiency
  • 23159 2022-009
    Significant Deficiency
  • 23160 2022-010
    Significant Deficiency
  • 23161 2022-011
    Significant Deficiency
  • 599578 2022-003
    Significant Deficiency
  • 599579 2022-004
    Significant Deficiency
  • 599580 2022-005
    Significant Deficiency
  • 599581 2022-006
    Significant Deficiency
  • 599582 2022-003
    Significant Deficiency
  • 599583 2022-004
    Significant Deficiency
  • 599584 2022-005
    Significant Deficiency
  • 599585 2022-006
    Significant Deficiency
  • 599586 2022-003
    Significant Deficiency
  • 599587 2022-004
    Significant Deficiency
  • 599588 2022-005
    Significant Deficiency
  • 599589 2022-006
    Significant Deficiency
  • 599590 2022-003
    Significant Deficiency
  • 599591 2022-004
    Significant Deficiency
  • 599592 2022-005
    Significant Deficiency
  • 599593 2022-006
    Significant Deficiency
  • 599594 2022-007
    Material Weakness
  • 599595 2022-008
    Significant Deficiency
  • 599596 2022-009
    Significant Deficiency
  • 599597 2022-010
    Significant Deficiency
  • 599599 2022-007
    Material Weakness
  • 599600 2022-008
    Significant Deficiency
  • 599601 2022-009
    Significant Deficiency
  • 599602 2022-010
    Significant Deficiency
  • 599603 2022-011
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.12M
84.063 Federal Pell Grant Program $877,633
84.425 Education Stabilization Fund $127,202
84.033 Federal Work-Study Program $48,017
84.007 Federal Supplemental Educational Opportunity Grants $41,048