Finding Text
Finding 2022-008 ? Material Weakness: Allowable Costs and Activities and Period of Performance ? Control Finding ALN 84.425J ? Higher Education Emergency Relief Fund (HEERF) HBCU Portion Federal Agency: U.S. Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: The University is allowed to utilize HEERF funding to reimburse lost revenues associated with room and board and childcare services. Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal program. Condition: The University did not provide supporting documentation that a second review to verify that costs charged to the grant were allowable and incurred within the period of performance did not occur. Cause: Controls over compliance were not put in place by management as it relates to these compliance requirements. Effect: The possibility exists that noncompliance with federal requirements could go undetected without proper controls over compliance. Questioned Costs: None noted Context: During the testing performed, it was noted that HEERF funds were utilized to reimburse the University for lost revenues. There was no control identified to ensure costs charged to the grant were allowable and incurred within the period of performance. Statistical sampling was not used to test this compliance requirement. Identification As A Repeat Finding: Some portions of this finding are a repeat of 2021-011 and 2020-009. Recommendation: We recommend that management review its processes and controls surrounding applicable compliance requirements to improve the existing system such that it will ensure compliance with the requirements of federal grants. Views Of Responsible Officials: The University will document lost revenue in comparison to the Board of Regents approved budget. The calculation will be prepared by the Assistant Comptroller, reviewed by the Comptroller as the second reviewer, and approved by the Chief Financial Officer, as the third and final review for charges being allocated to the grant.