Finding 2025-001
material weakness
- Program
- HIGHER EDUCATION_INSTITUTIONAL AID (84.031)
- Compliance requirement
- Matching, level of effort, earmarking
- FAC record
- FY2025 audit on fac.gov
Finding text from the filing
Program Title: Higher Education Institutional Aid (HEIA) Federal Assistance Listing Number: 84.031A Federal Award Year: 9/1/2024 – 8/31/2025 Federal Agency: U.S. Department of Education Compliance Requirement: Level of Effort Type of Finding: Material Weakness and Noncompliance
Criteria: Under the provisions of the HEIA Program Guidelines, issued by the U.S. Department of Education, institutions are required comply with Level of Effort requirements outlined within the Grant Agreements.
Condition: The College failed to meet the level of effort requirements for three (3) of the nine (9) employees, as stipulated in the grant agreements.
Questioned Costs: None reportable
Context: Three of the nine employees with required level-of-effort commitments did not have their payroll costs charged to the grant in accordance with the grant requirements.
Effect: Failure to allocate payroll costs for employees with required level-of-effort commitments resulted in noncompliance with grant requirements. Cause: During the 2024-2025 award year, staff responsible for allocation of payroll costs lacked adequate understanding of the level-of-effort requirements as specified in the grant agreements.
Repeat Finding: No
Recommendation: Lone Star College should implement stronger payroll allocation controls by formalizing procedures to align charges with level-of-effort commitments, conducting regular reconciliations, maintaining clear documentation, and providing mandatory training for grant and payroll staff.
Views of responsible officials: Agreed