Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Education Stabilization Fund – Higher Education Emergency Relief Fund –
Student Portion, and Minority Serving Institutions
Assistance Listing Number: 84.425E and 84.425L
Award Period: July 01, 2022 – June 30, 2023
Type of Finding:
Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: American Rescue Plan (ARP) created two new requirements that a portion of Higher Education Emergency Relief Fund (HEERF) III institutional funds must be used (a) to 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 Higher Education Act.
Spending under these categories indicates whether an institution has spent funds under a required use of funds established under the ARP.
Condition: During our testing, it was noted the University did not spend any funds on direct outreach to financial aid applicants, as outlined per the terms of the agreement.
Questioned costs: None.
Context: While testing reporting and earmarking requirements, we noted that there were no funds spent on direct outreach to financial aid applicants.
Cause: The University was not aware of all the earmarking requirements.
Effect: The University is not in compliance with all provisions of the grant agreement.
Repeat finding: No.
Recommendation: We recommend the University implement a process to ensure all grant agreements are reviewed and there is a clear understanding of any reporting and/or earmarking requirements to limit the risk of noncompliance.
Views of responsible officials: Management agrees with the finding.