Finding 602462 (2022-003)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 24461
Organization: Laboure College of Healthcare (MA)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The college failed to conduct required outreach to financial aid applicants regarding financial aid adjustments due to family unemployment or other circumstances.
  • Impacted Requirements: This non-compliance with the American Rescue Plan's stipulations could lead to the Department of Education withholding future payments.
  • Recommended Follow-Up: Management should establish a control system to monitor changes in DOE regulations for any future funding opportunities.

Finding Text

Finding No. 2022-003 ? Higher Education Emergency Relief Funds Earmarking Federal Agency: U.S. Department of Education Program: COVID-19 Education Stabilization Fund: ALN: 84.425 Criteria: The American Rescue Plan created a new requirement that a portion of the HEERF III institutional funds must be used 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 Higher Education Act. Condition: There was no evidence that direct outreach was performed during the fiscal year in which the remaining federal fundings under the award were expended. Questioned Costs: None. Prevalence: There was no evidence that direct outreach occurred as required by the program. Effect: Not complying with requirements outlined within applicable grant agreements could result in the DOE withholding payments to the College. Cause: This issue is a result of a lack of proper understanding of applicable requirements. Recommendation: The Federal funding for this program has ended. If the DOE should add additional funding or create new or similar programs, we recommend that management implement a control to regularly monitor and manage changes to rules and regulations promulgated by the DOE. Reporting Views of Management and Corrective Actions: Management agrees with the finding and corrective actions will be made.

Categories

Matching / Level of Effort / Earmarking Reporting

Other Findings in this Audit

  • 26016 2022-004
    Significant Deficiency
  • 26017 2022-005
    Significant Deficiency
  • 26018 2022-004
    Significant Deficiency
  • 26019 2022-002
    Significant Deficiency Repeat
  • 26020 2022-003
    Significant Deficiency
  • 26021 2022-002
    Significant Deficiency Repeat
  • 26022 2022-005
    Significant Deficiency
  • 26023 2022-005
    Significant Deficiency
  • 26024 2022-005
    Significant Deficiency
  • 602458 2022-004
    Significant Deficiency
  • 602459 2022-005
    Significant Deficiency
  • 602460 2022-004
    Significant Deficiency
  • 602461 2022-002
    Significant Deficiency Repeat
  • 602463 2022-002
    Significant Deficiency Repeat
  • 602464 2022-005
    Significant Deficiency
  • 602465 2022-005
    Significant Deficiency
  • 602466 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.33M
84.063 Federal Pell Grant Program $2.20M
93.364 Nursing Student Loans $465,874
84.007 Federal Supplemental Educational Opportunity Grants $163,369
84.038 Federal Perkins Loan Program $103,649
84.425 Education Stabilization Fund $20,153
84.033 Federal Work-Study Program $14,571