Finding 614734 (2022-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-04

AI Summary

  • Core Issue: Incorrect reporting of HEERF funds due to journal entry errors led to inaccurate quarterly financial reports.
  • Impacted Requirements: Institutions must report HEERF expenditures within 10 days after each quarter, but errors affected compliance for three out of four reports.
  • Recommended Follow-Up: Implement monthly reconciliations and detailed reviews of grant accounts to ensure accurate reporting and timely error detection.

Finding Text

Program: COVID-19 Education Stabilization Fund ALN 84.425F Higher Education Emergency Relief Fund ? Institutional Portion Program Requirement: Reporting Criteria: Pursuant to 2022 Compliance Supplement ESF Section 2 III L, an institution must post a report covering amounts spent during the quarter for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period no later than 10 days after the end of each calendar quarter. The report includes the total amount of funds received to date for each Suffix. Condition: The total funds received to date reported under suffix F was the amount of both the suffix E and F grants. The general ledger accounts used to support the HEERF Institutional Portion reporting did not include all of the HEERF expenditures due to a journal entry post error. The error was not timely detected during the College?s quarterly reconciliation of grant revenues and expenditures. The error was detected and corrected prior to year end. Context: Journal entries were recorded incorrectly to the general ledger, resulting in incorrect reports for the quarters tested. The entries were corrected between the report date and year end. The total funds received to date was incorrect on three out of four quarterly reports. Cause: The Business Office did not properly review the reconciliation of grant expenditures or the total funding by suffix. Effect: Errors could go unnoticed and not be detected and corrected in a timely manner. Questioned Costs: None Repeat Finding: Yes Recommendation: Reconciliations of grant revenue and expenditures should be performed monthly, with a detailed review of account balances to ensure accuracy and proper reporting. Views of Responsible Officials: The College agrees with the recommendation to perform monthly reconciliations, a detailed review of account balances to ensure accuracy and proper reporting.

Categories

Reporting

Other Findings in this Audit

  • 38291 2022-003
    Significant Deficiency Repeat
  • 38292 2022-002
    Significant Deficiency Repeat
  • 38293 2022-003
    Significant Deficiency Repeat
  • 38294 2022-004
    Significant Deficiency Repeat
  • 614733 2022-003
    Significant Deficiency Repeat
  • 614735 2022-003
    Significant Deficiency Repeat
  • 614736 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.75M
84.425 Covid-19 Higher Education Emergency Relief Fund - Student Aid Portion $997,613
84.268 Federal Direct Student Loans $366,626
84.425 Covid-19 Higher Education Emergency Relief Fund - Institutional $306,234
84.042 Title IV - Trio $277,120
84.031 Title III - Gateways to Success $244,490
84.425 Covid-19 Higher Education Emergency Relief Fund - Minority Servicing Institution $103,042
84.048 Carl Perkins Vocational Education - Basic $69,263
84.007 Federal Supplemental Educational Opportunity Grant Program (fseog) $27,153
84.033 Federal Work-Study Program $20,082