Finding Text
Finding 2022-003 Department of Education Education Stabilization Fund - Higher Education Emergency Relief Fund ? Student Federal Financial Assistance Listing #84.425E P425E200919-20B Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance Criteria: The Organization is required to have procedures in place to ensure that federal awards are expended only for allowable costs in accordance with Subpart E ? Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR 200.430(i) establishes the standards for documentation of personnel expenses including charges to Federal awards for salaries and wages. Condition: The University over-awarded Higher Education Emergency Relief Fund (HEERF) funding to one student based on its determination over eligibility of the student portion of HEERF funding, which is awarded based on (1) expected family contribution and (2) enrollment status. The student was awarded based on fulltime enrollment; however, the student?s enrollment status was part-time. Cause: The student listing, prepared by the registrar?s office and used by the financial aid office to determine the allocation of student funding improperly counted credit hours more than once for certain students. Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that disallowed expenditures will be charged to the federal award. Questioned Costs: No questioned costs (students were overpaid) Context: A nonstatistical sample of 60 ($82,250) students out of a total of approximately 1,270 ($1,627,825) students were tested. Repeat Finding from Prior Year: No Recommendation: We recommend that management review procedures and control processes to comply with the federal requirements noted above. Views of Responsible Officials: Management agrees with the finding and the recommendation.