Finding Text
2022-003 HEERF Reporting U.S. Department of Education Program Education Stabilization Fund (ESF) subprograms section COVID-19 Higher Education Emergency Relief Fund (HEERF) Student Aid portion (ALN 84.425E) COVID-19 Higher Education Emergency Relief Fund (HEERF) Institutional Aid portion (ALN 84.425F) Federal Award Year: 2021?2022 Condition: While testing reporting, we noted that there were not controls or approvals over the reporting requirement for the HEERF program. Criteria: Per 2 CFR part 200.303, ?the non-Federal entity must: a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.? Effective internal controls should include procedures in place to ensure the proper reviews and approvals are performed over required reporting. Cause: Management did not have effective internal controls in place to ensure that reviews and approvals were performed over the reports due to the newness of the program. In addition, management placed more focus on addressing student needs instead of implementing controls over reporting. Effect: Effective internal control over reporting was not established and maintained. There is the potential that future grant funding could be lost due to noncompliance with the award requirements. Prevalence: Two out of two reports tested. Questioned costs: None. Repeat finding?: Yes. Recommendation: Management should establish and maintain controls over reporting. View of responsible officials of the auditee: Management agrees with this finding.