Finding 962619 (2023-003)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2023
Accepted
2024-03-27

AI Summary

  • Core Issue: The University miscalculated lost revenue by not using the required formula from the Final Rule for the Coronavirus State & Local Fiscal Recovery Funds.
  • Impacted Requirements: Compliance with the methodology for determining lost revenue is essential to ensure accurate claims for government services funding.
  • Recommended Follow-Up: The University should review and improve their procedures and policies related to earmarking requirements to prevent future discrepancies.

Finding Text

2023 – 003 Federal Agency: Department of Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Fund Assistance Listing Numbers: 21.027 Federal Award Identification Number and Year: SLFRP1746, grants were awarded within the 2022-23. Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Recipients of Coronavirus State & Local Fiscal Recovery Funds may use payments from SLRFR to replace lost public sector revenue to provide government services. Recipients may use this funding to provide government services to the extent of the reduction in revenue experience due to the pandemic. Under the Final Rule, recipients can elect a one-time “standard allowance” or they can calculate lost revenue based on the formula provide in the Final Rule to determine the amount of funds that can be used for the provision of government services. Condition: The University did not use the formula provided in the Final Rule when determining the amount of funds to claim under lost revenue. Questioned Costs: N/A Context: The University did not use the correct methodology when calculating lost revenue. Cause: The University did not use the correct methodology when calculating lost revenue. Effect: Lost revenue amount calculated could have resulted in more than allowed lost revenue being claimed. Repeat Finding: No. Recommendation: The University should evaluate their procedures and review their policies surrounding earmarking requirements.

Categories

Matching / Level of Effort / Earmarking Significant Deficiency

Other Findings in this Audit

  • 386175 2023-005
    Significant Deficiency
  • 386176 2023-005
    Significant Deficiency
  • 386177 2023-003
    Significant Deficiency
  • 386178 2023-004
    Significant Deficiency
  • 962617 2023-005
    Significant Deficiency
  • 962618 2023-005
    Significant Deficiency
  • 962620 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $17.28M
84.063 Federal Pell Grant Program $6.39M
84.038 Federal Perkins Loan Program $1.29M
11.028 Connecting Minority Communities Pilot Program $765,317
21.027 Coronavirus State and Local Fiscal Recovery Funds $758,000
84.031 Higher Education_institutional Aid $546,132
84.007 Federal Supplemental Educational Opportunity Grants $457,395
84.033 Federal Work-Study Program $209,403
84.047 Trio_upward Bound $137,643
47.070 Computer and Information Science and Engineering $96,428
47.076 Education and Human Resources $53,184
15.904 Historic Preservation Fund Grants-in-Aid $50,800
43.008 Education $21,132
43.009 Cross Agency Support $5,665