Finding 624799 (2022-004)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-27

AI Summary

  • Core Issue: The College failed to maintain proper internal controls for reporting HEERF expenditures, leading to significant deficiencies in compliance.
  • Impacted Requirements: The College did not meet the requirements set by CFR Section 200.303, including timely and accurate reporting of HEERF expenditures.
  • Recommended Follow-Up: The College should enhance its policies on federal grants and establish a review process to ensure compliance with all reporting requirements.

Finding Text

2022 ? 004 ? Higher Education Emergency Relief Funds (HEERF) Reporting Federal Agency: Department of Education Federal Program Title: Higher Education Emergency Relief Funds ALN Numbers: 84.425E, 84.425F Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: The Code of Federal Regulations (CFR) Section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During our testing of reporting, we noted the College did not revise its reporting of the HEERF expenditures that were originally reported in fiscal year 2020 and subsequently corrected on the financial statements of the College. We noted the required quarterly student-portion reporting was not uploaded to the College?s website in fiscal year 2022. We noted the required quarterly institutional-portion reporting for quarter-ending 12/31/21 and 3/31/22 were not uploaded to the College?s website in fiscal year 2022. Lastly, we noted several discrepancies in the numbers reported in the annual report submitted for 2021. There was also no documentation of review of this report. Questioned costs: None Context: There was a lack of internal control processes in place for submission of the necessary required reporting. Cause: The College did not have an internal control structure that included correcting errors in reporting or timely submission of reporting. Effect: Mistakes and/or errors could result if internal control procedures are not properly in place and implemented. Repeat Finding: Yes, 2021-002 Recommendation: We recommend that the College review their policies surrounding federal grants and ensure a review process is in place to ensure that all necessary compliance requirements are met. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Matching / Level of Effort / Earmarking Reporting Significant Deficiency

Other Findings in this Audit

  • 48351 2022-003
    Significant Deficiency
  • 48352 2022-003
    Significant Deficiency
  • 48353 2022-003
    Significant Deficiency
  • 48354 2022-003
    Significant Deficiency
  • 48355 2022-003
    Significant Deficiency
  • 48356 2022-003
    Significant Deficiency
  • 48357 2022-004
    Significant Deficiency Repeat
  • 48358 2022-006
    Significant Deficiency
  • 48359 2022-004
    Significant Deficiency Repeat
  • 48360 2022-005
    Significant Deficiency Repeat
  • 48361 2022-006
    Significant Deficiency
  • 48362 2022-005
    Significant Deficiency Repeat
  • 48363 2022-006
    Significant Deficiency
  • 624793 2022-003
    Significant Deficiency
  • 624794 2022-003
    Significant Deficiency
  • 624795 2022-003
    Significant Deficiency
  • 624796 2022-003
    Significant Deficiency
  • 624797 2022-003
    Significant Deficiency
  • 624798 2022-003
    Significant Deficiency
  • 624800 2022-006
    Significant Deficiency
  • 624801 2022-004
    Significant Deficiency Repeat
  • 624802 2022-005
    Significant Deficiency Repeat
  • 624803 2022-006
    Significant Deficiency
  • 624804 2022-005
    Significant Deficiency Repeat
  • 624805 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $740,123
84.063 Federal Pell Grant Program $368,155
84.425E Heerf Student Aid Portion $302,012
84.425F Heerf Institutional Portion $296,151
84.038 Federal Perkins Loans - Beginning Balance $249,387
84.033 Federal Work-Study Program $78,509
84.007 Federal Supplemental Educational Opportunity Grants $57,368
84.425M Heerf Strengthening Institutions Program $40,623
84.038 Federal Perkins Loans - Loans Issued in 2022 $0