Finding Text
Finding 2022-001 Allowable Costs ? Significant Deficiency in Internal Control and Instance of Noncompliance Federal Program: Education Stabilization Fund ? COVID-19 ? Higher Education Emergency Relief Funds Federal Assistance Listing Number: 84.425F ? Higher Education Emergency Relief Fund (HEERF) - Institutional Aid Portion Federal Agency: Department of Education Award Year: July 1, 2021 ? June 30, 2022 Criteria: Institutions must demonstrate that costs incurred are allowable under the relevant statutory provisions and consistent with the purpose of the ESF ?to prevent, prepare for, and respond to coronavirus.? HEERF II, HEERF III, and HEERF I funds liquidated (spent) on or after December 27, 2020. Beginning December 27, 2020, any unused HEERF I Institutional Portion funds, new HEERF II Institutional Portion funds, HEERF III Institutional Portion Funds may be used to defray expenses associated with coronavirus (including lost revenue, reimbursement for expenses already incurred, technology costs associated with a transition to distance education, faculty and staff trainings, and payroll) and to make additional financial grants to students (CRRSAA Section 314(c)(1-3); ARP Section 2003). Condition and Context: During our testwork over 47 HEERF expenditures during the current year, we identified one expenditure that was not an allowable expenditure to the HEERF grant. Isolated or Systemic: Systemic. Cause and Effect: The College?s control failed in detecting timely that unallowable costs were charged to its HEERF grant. Questioned Costs: $635.00. Whether the sampling was a statistically valid sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend that the College enhance its internal controls to ensure all expenditures charged to their HEERF grants are for allowable costs. View of Responsible Officials: As the $635.00 expenditure documentation was prepared correctly, but processed incorrectly, the College will strengthen its reconciliation procedures to ensure that only allowable expenditures are posted to the respective HEERF grant fund and that timely corrections are made.