Finding 946543 (2023-002)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-02-22

AI Summary

  • Core Issue: WCCC failed to comply with ARP requirements by not spending HEERF III and Strengthening Institutions funds on mandated activities, reporting $0 in allowable costs.
  • Impacted Requirements: Funds were supposed to be used for public health practices and outreach for financial aid adjustments, but were instead used for revenue replacement.
  • Recommended Follow-Up: WCCC should assign a responsible individual to oversee grant spending and ensure compliance with allowable costs and activities moving forward.

Finding Text

Finding 2023-002: Education Stabilization Fund Allowable Costs and Allowable Activities Federal Agency: Department of Education Program: COVID-19 Education Stabilization Fund: 84.425 Criteria: The American Rescue Plan (ARP) established two required uses of the HEERF III institutional grant funds for public and private nonprofit institutions in which a portion of funds must be used to: (a) implement evidence-based practices to monitor and suppress coronavirus in accordance with public health guidelines; and (b) conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment due to the recent unemployment of a family member or independent student, or other circumstances, described in section 479A of the HEA. This requirement was also in place for the HEERF Strengthening Institutions Program funding received by WCCC. Condition: The internal control system to ensure WCCC’s compliance with the ARP required uses of HEERF III institutional and HEERF Strengthening Institutions Program grant funds were not operating effectively. WCCC reported on their annual reports for Years 2 and 3, encompassing the use of the aforementioned HEERF specific funds, that $0 was spent on both categories. Cause: Controls were not in place to ensure WCCC’s compliance with the ARP allowable costs and allowable activities requirement to spend HEERF III and HEERF Strengthening Institutions funds on the above stated categories. Effect: WCCC was not in compliance with the ARP requirements for spending a portion of HEERF III and HEERF Strengthening Institutions Program funds on the above stated categories. WCCC spent all HEERF III and HEERF Strengthening Institutions Program grant funds on revenue replacement, which is not the above stated categories. Repeat Finding: This is not a repeat finding. Questioned costs: Unknown Recommendation: We recommend that WCCC implement procedures to designate an individual responsible for reviewing all grant funding for allowable costs and allowable activities requirements and that the designated individual ensure that grant funding is being spent in accordance with those requirements. View of Responsible Officials and Planned Corrective Action: WCCC continued to provide the same Covid outreach programs as they had in years one, two, and three to their Students and Employees and community. - Vaccination clinics were continued and are still offered. However, these are at no cost to the University, student, or employee. - Hand sanitizer, masks and other items are always available to those who require, but were paid for from prior years funds. - When advertising for all Covid related events Westmoreland used sources which were at no cost to the College. - The staff time to organize and manage events did not get allocated to the grant, however would have been covered under the lost revenue recognition.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 370088 2023-003
    Material Weakness
  • 370089 2023-004
    Material Weakness
  • 370090 2023-005
    Material Weakness
  • 370091 2023-003
    Material Weakness
  • 370092 2023-004
    Material Weakness
  • 370093 2023-005
    Material Weakness
  • 370094 2023-003
    Material Weakness
  • 370095 2023-004
    Material Weakness
  • 370096 2023-005
    Material Weakness
  • 370097 2023-003
    Material Weakness
  • 370098 2023-004
    Material Weakness
  • 370099 2023-005
    Material Weakness
  • 370100 2023-001
    Material Weakness Repeat
  • 370101 2023-002
    Material Weakness
  • 370102 2023-001
    Material Weakness Repeat
  • 370103 2023-002
    Material Weakness
  • 370104 2023-001
    Material Weakness Repeat
  • 370105 2023-002
    Material Weakness
  • 370106 2023-001
    Material Weakness Repeat
  • 370107 2023-002
    Material Weakness
  • 946530 2023-003
    Material Weakness
  • 946531 2023-004
    Material Weakness
  • 946532 2023-005
    Material Weakness
  • 946533 2023-003
    Material Weakness
  • 946534 2023-004
    Material Weakness
  • 946535 2023-005
    Material Weakness
  • 946536 2023-003
    Material Weakness
  • 946537 2023-004
    Material Weakness
  • 946538 2023-005
    Material Weakness
  • 946539 2023-003
    Material Weakness
  • 946540 2023-004
    Material Weakness
  • 946541 2023-005
    Material Weakness
  • 946542 2023-001
    Material Weakness Repeat
  • 946544 2023-001
    Material Weakness Repeat
  • 946545 2023-002
    Material Weakness
  • 946546 2023-001
    Material Weakness Repeat
  • 946547 2023-002
    Material Weakness
  • 946548 2023-001
    Material Weakness Repeat
  • 946549 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.41M
84.063 Federal Pell Grant Program $5.36M
84.425 Covid-19 Education Stabilization Fund $427,682
84.048 Career and Technical Education -- Basic Grants to States $391,243
84.042 Trio_student Support Services $313,180
84.007 Federal Supplemental Educational Opportunity Grants $218,500
64.027 Post-9/11 Veterans Educational Assistance $186,058
93.558 Temporary Assistance for Needy Families $94,876
17.235 Senior Community Service Employment Program $66,524
23.011 Appalachian Research, Technical Assistance, and Demonstration Projects $47,604
84.033 Federal Work-Study Program $34,440
93.324 State Health Insurance Assistance Program $33,394
94.002 Retired and Senior Volunteer Program $31,793
12.006 National Defense Education Program $14,675
64.116 Veterans Readiness and Employment $5,392
11.307 Covid-19 Economic Adjustment Assistance $207