Finding 666944 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-10-30
Audit: 88933
Auditor: Wipfli LLP

AI Summary

  • Core Issue: The College failed to report the number of eligible students for HEERF funding on its website and made errors in its Annual Report regarding student aid and expenditures.
  • Impacted Requirements: The College did not comply with reporting requirements set by the CARES Act and subsequent federal announcements, leading to inaccuracies in required reports.
  • Recommended Follow-Up: Implement internal controls for accurate reporting and ensure staff are updated on federal reporting requirements; management has acknowledged the issue and is taking corrective action.

Finding Text

COVID-19 Education Stabilization Fund ? Higher Education Emergency Relief Fund (HEERF) CFDA No. 84.425 Department of Education Direct Award Grant period: April 25, 2020 through June 30, 2023 Questioned costs: $0 Condition: In regard to the Student Aid quarterly reporting, the College does not include the number of eligible students for HEERF funding in the narrative posted to the College?s website. In addition, the Annual Report had errors relating to the amount of Student Aid applied to students? account balances, the amount of Institutional expenditures were used to cover student outstanding account balances, and the amount of expenditures reported under other uses of Institutional Portion funds. Criteria: The student reporting requirements and posting due dates for Section 18004(a)(1) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) were disclosed in the Federal Student Aid (IFAP) Electronic Announcement dated May 6, 2020. The student reporting requirements for Section 314(e) of CRRSAA and ARP HEERF III were disclosed in the Federal Student Aid (IFAP) Electronic Announcement dated May 13, 2021. The US Department of Education requires all information reported on annual and quarterly reports to be accurate. Cause: The College was unaware of the requirements to report the number of eligible students in the Student Aid quarterly reports and the Annual Report discrepancies were due to clerical errors. The College does not have proper internal controls in place to ensure proper reporting. Effect: The College was not in compliance with HEERF reporting requirements and did not accurately report HEERF amounts on the Annual Report. Recommendation: We recommend the College implement internal control procedures to ensure proper annual and quarterly reporting and the person(s) responsible for reporting are current on the reporting requirements issued but the US Department of Education. View of responsible officials: Management acknowledges the finding and has prepared a corrective action plan. The College has already updated the website to include the number of eligible students.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 90501 2022-001
    Significant Deficiency
  • 90502 2022-001
    Significant Deficiency
  • 666943 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.92M
84.425 Covid-18 Education Stabilization - Heerf - Institutional $1.70M
84.425 Covid-19 Education Stabilization Fund - Heerf Student $1.22M
84.268 Federal Direct Student Loans $586,679
84.042 Trio_student Support Services $258,453
84.048 Career and Technical Education -- Basic Grants to States $147,853
84.425 Covid-19 Education Stabilization Fund - Geer $108,015
84.002 Adult Education - Basic Grants to States $77,644
84.007 Federal Supplemental Educational Opportunity Grants $51,346
84.033 Federal Work-Study Program $36,897