Finding 966029 (2023-007)

2023-007 FINDING - Noncompliance with Grant Report Requirements Federal Agency: Department of Education Assistance Listing Numbers: 84.425E/84.425F Program Names and Award Numbers: Education Stabilization Fund Under the Coronavirus Aid, Relief, And Economic Security Act [COVID-19 Higher Education Emergency Relief Fund: Institution Portion (P425F200852); COVID-19 Higher Education Emergency Relief Fund: Student Portion (P425E201821)] Program Expenditures: $5,142,525 Questioned Costs: None Northeastern Illinois University (University) did not have adequate procedures in place to ensure the Education Stabilization Fund - Higher Education Emergency Relief Fund (HEERF) reports were accurate and timely submitted to the U.S. Department of Education and posted to NEIU’s website.Northeastern Illinois University (University) did not have adequate procedures in place to ensure the Education Stabilization Fund - Higher Education Emergency Relief Fund (HEERF) reports were accurate and timely submitted to the U.S. Department of Education and posted to NEIU’s website. During our testing of the University’s compliance with the grant reporting requirements for HEERF, we noted the University did not review the required reports to ensure accuracy and compliance with the reporting requirements of the grant agreement. We noted the following: Four of 4 (100%) Quarterly Public Reports improperly completed and/or reported Student Aid amounts. The Department of Education Quarterly Budget and Expenditure Reporting Form requires the University to post the number of students and total amount of aid received each quarter. In addition, the Form requires the posting of cumulative student aid disbursed by quarter for both undergraduate and graduate. Finally, the University should note the average award amount per student for both undergraduate and graduate. Three of 4 (75%) Quarterly Public Reports were posted 15 days, 30 days, and 107 days late to the University’s website. The Department of Education Quarterly Budget and Expenditure Reporting Form requires the University to post the Quarterly Public Reports covering each quarterly reporting period (September 30, December 31, March 31, June 30), no later than 10 days after the end of each calendar quarter. Uniform Guidance (2 CFR 200.303(a)) requires nonfederal entities receiving federal awards establish and maintain effective internal control designed to reasonably ensure compliance with Federal laws, statutes, regulations, and the terms and conditions of the Federal award. University officials stated required reports were not timely and accurately submitted due to turnover within the University resulting in staffing constraints. Failure to meet grant reporting requirements is noncompliance with federal regulations and could result in loss of grant funding in future years. (Finding Code No. 2023-007, 2022-005, 2021-008, 2020-011) RECOMMENDATION: We recommend the University improve its grant reporting and monitoring process to adhere with grant requests for reporting. UNIVERSITY RESPONSE:The University agrees with the recommendation.