Finding Text
2022-009 Department of Education Education Stabilization Fund: Higher Education Emergency Relief Find (HEERF) CFDA # 84.425F ? HEERF Institutional Award Numbers P425F201808-20A and P425201808-20B Allowable Costs/Activities ? Institutional Significant Deficiency in Internal Controls over Compliance and noncompliance Criteria: CRRSSA section 314 (c) (1-3) and ARP section 2003, sets forth the criteria for allowable costs/activities in regard to the HEERF Institutional portion. Additional guidance is also available in Department of Education FAQs that are available on the Department of Education website. Condition: During testing of allowable costs/activities of HEERF Institutional portion, it was noted that 20 students who were to have student debt and unpaid balances discharged, did not have the proper amount discharged from accounts. In testing, it was noted that Presentation College requested the funds be drawn from G5 in January 2022 when student accounts with debt to be discharged were determined. Student accounts were not credited until April 2022 which resulted in differences between expected amounts to be forgiven and actual amounts that were forgiven. Cause: Presentation College experienced a staffing shortage along with turnover in the financial aid and accounting departments during the year. It was believed the student balances were discharged in January, and when the issue was noticed, the student accounts were discharged but no one noticed the variances in the amounts. Effect: Presentation College drew additional funds that were not used to discharge debt. Questioned Costs: $30,719. Context/Sampling: Total lost revenue claimed for student debt discharged was $243,810, of which 100% was tested. Repeat Finding from Prior Year(s): No. Recommendation: We recommend a conversation with Department of Education occur to correct this error. Views of Responsible Officials: Management agrees with the finding.