Finding Text
Lost Revenue
Information on the Federal Program: HEERF Institutional Portion (AL Number 84.425F) – U.S.
Department of Education
Criteria or specific requirement: 2 CFR Section 200.334 - Financial records, supporting documents,
statistical records, and all other non-federal entity records pertinent to a federal award must be
retained for a period of three years from the date of submission of the final expenditure report or,
for federal awards that are renewed quarterly or annually, from the date of the submission of the
quarterly or annual financial report, respectively, as reported to the federal awarding agency or passthrough
entity in the case of a subrecipient.
Higher Education Emergency Relief Fund Lost Revenue Frequently Asked Questions - An institution
must adequately document its estimate of lost revenue, including its rationale, calculations,
methodology, underlying data, and budgets or projections used to determine the amount of lost
revenue.
Condition: At the time the lost revenue estimation was made, the University did not
contemporaneously document its rationale, calculations, or methodology. Based on a review of
parking revenue data subsequently compiled from the previous four years, it was determined that
the amount reported as lost revenue in 2022 was reasonable; however, the contemporaneous record
retention criteria was not satisfied.
Questioned Cost: $-0-
Cause: The University did not retain contemporaneously prepared documentation supporting its
estimate of lost revenue including its rationale, calculations, and methodology.
Effect: Contemporaneously prepared documentation and justification of the lost revenue estimation
was not available to be audited. Historical parking revenue data from the previous four years was
subsequently compiled and provided to support the amount reported as lost revenue in 2022 was
reasonable.
Recommendation: We recommend the University review the internal controls over the
administration of federal funds to ensure future documentation is created and retained in
accordance with specific grant requirements with an emphasis on the specific requirements of grants
new to the University.