Finding 599602 (2022-010)

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

AI Summary

  • Core Issue: Incorrect tuition amounts were used to calculate emergency financial aid grants, leading to an $800 overdraw from G5 and a $500 unpaid award.
  • Impacted Requirements: The University must disburse funds within specified timeframes, which were not met due to manual calculation errors.
  • Recommended Follow-Up: Implement procedures for independent review of reconciliations to ensure accuracy and compliance.

Finding Text

2022-010 ? Incorrect Tuition Amount used to Calculate Award/Student did not Receive Emergency Financial Aid Grant Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Cash Managment). Program. COVID-19 - Higher Education Emergency Relief Fund; Assistance Listing Numbers 84.425E, 84.425F. Criteria. The University is required to disburse funds from the student portion within 15 days and the institutional portion within three days of the drawdown from G5 or in accordance with the University's cash management policy if more restrictive than the prescribed guidance. Condition. Management prepared a manual spreadsheet to calculate student emergency aid grants based on outstanding student balances. Of the 40 students tested, two students were identified where the incorrect outstanding balance was used to calculate the student emergency aid grant, and one student was identified who was awarded emergency aid, however, the award was not paid to the student. Cause. This condition appears to have been caused by a lack of oversight of accounting personnel and reconciliations not being subject to independent review. Effect. As a result of this condition, the University overdrew funds from G5 in the total amount of $800 and failed to pay award to a student in the amount of $500. Questioned Costs. No costs have been questioned as a result of this finding inasmuch no unallowable costs have been identified. Recommendation. We recommend that the University implement procedures to review reconciliations for accuracy. View of Responsible Officials. Management agrees with the finding. See corrective action plan.

Categories

Allowable Costs / Cost Principles Cash Management 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
  • 599598 2022-011
    Significant Deficiency
  • 599599 2022-007
    Material Weakness
  • 599600 2022-008
    Significant Deficiency
  • 599601 2022-009
    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