Highland Community College

Finding 2021-001 Significant Deficiency Prior Reference Number ? None Federal Program ? Student Financial Aid Cluster (Assistance Listing Nos. 84.063, 84.033, 84.007, 84.268) Condition ? During the course of the audit, the auditors identified two students that should have had a Return of Title IV funds (R2T4) calculation performed but were not properly identified by the College?s internal control structure. Criteria ? R2T4 analysis is the responsibility of management. As such, the College?s internal control over this process should identify all instances when this calculation is required. Cause ? The controls in place failed to ensure that all R2T4 calculations were performed during the year. Effect ? Lack of performance of R2T4 calculations could result in the College not returning funds to the grantor as required. Recommendation ? We recommend the College implement controls and processes that allow for the timely completion of performance of R2T4 calculations. Management?s Response/Corrective Action Plan (Unaudited) ?In the summer of 2020, former Director Joshua North was responsible for R2T4 calculations. During that time, there was a waiver which did not require returning of funds. Mr. North no longer works for HCC; our assumption is that he thought the waiver meant the calculations did not have to be performed either. The R2T4 calculations have now been completed. Going forward, we are performing the calculations as students withdraw and at the end of each semester.

Finding 2021-002 Significant Deficiency Prior Reference Number - None Federal Program - Higher Education Emergency Relief Fund (Assistance Listing Nos. 84.425E, 84.425F) Condition - During the course of the audit, the auditors identified two quarterly reports of Higher Education Emergency Relief Funds (HEERF) for institutional and student portion that were not submitted on a timely basis. Criteria - The timely submission of HEERF reports is the responsibility of management. As such, the College's internal control over this reporting process should ensure that the reporting deadlines are met. Cause - The controls in place failed to ensure that the HEERF reports were submitted timely during the year. Effect - Without proper controls in place, the College may not fulfill all applicable reporting requirements. Recommendation - We recommend the College implement controls and processes that allow for the College to identify and comply with all reporting requirements. Management's Response/Corrective Action Plan (Unaudited) - Regarding the student portion of HEERF reporting: former Director Joshua North left the College on May 31st. The new Director (Sarah Windmeyer) did not take over until July 1st. She knew nothing about HEERF funds or any reporting requirements until this single audit began and she was asked for that documentation. As soon as she became aware of the requirements, she created a report and loaded it to our website. Going forward, she has a calendar reminder at the end of the quarter and she now has access to upload the documents herself. She emails Randy Willy (the Vice President for Finance and Operations) and reminds him to send her the institutional report so she can upload it to the website. The College filed timely all of the HEERF 1 institutional quarterly and annual reports on its website but overlooked posting the report for the first disbursement of the HEERF 2 institution funds by July 10, 2021. As soon as the College realized this, the quarterly report was posted on its website and a reminder was placed on the calendar to ensure future quarterly reports were posted on its website by the deadline.

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION