“Be prepared for oversight of CARES Act financial assistance funds related to COVID-19.”
RISKS | CONTROLS | COMPLIANCE ALERT
IN THIS ISSUE
GETTING AHEAD OF THE CURVE
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act provided $38,301,957 in financial assistance to FIU through the Higher Education Emergency Relief Fund (HEERF). The University is required to use at least 50 percent of said funds to provide emergency financial aid grants to eligible students for expenses related to the disruption of campus operations due to coronavirus (including eligible expenses under a student’s cost of attendance, such as food, housing, course materials, technology, health care, and child care) pursuant to section 18004(c).
FIU may use the remaining funds (institution portion) to cover any costs associated with significant changes to the delivery of instruction due to COVID-19, with certain exceptions. Section 15010(b) of the CARES Act established the Pandemic Response Accountability Committee, (comprising selected Offices of Inspectors General) to promote transparency and conduct and support oversight of covered funds and the coronavirus response.
Financial assistance received through HEERF may be subject to investigations, audits, and reviews with the following objectives, among others:
- Detection and prevention of fraud, waste, abuse, and mismanagement.
- Identification of major risks that cut across programs and agency boundaries.
- Determination of whether wasteful spending, poor contract or grant management, or other abuses are occurring.
- Determination of whether the reporting of contracts and grants using covered funds meets applicable standards and specifies the purpose of the contract or grant and measures of performance.
- Assessing the economy, efficiency, and effectiveness in the administration of, and the detection of fraud, waste, abuse, and mismanagement in COVID-19 response programs and operations.
- Confirmation of whether competition requirements applicable to contracts and grants using covered funds have been satisfied.
- Verification of whether personnel whose duties involve the COVID-19 response or acquisitions, or grants made with covered funds or are otherwise related to the COVID-19 response receive adequate training, technology support, and other resources.
Sections 18004(e) and 15011 of the CARES Act delineate reporting requirements for grantees who receive financial assistance. The U.S. Department of Education has issued additional guidance on the required reporting.
The OIA’s Internal Audit Plan approved by the FIU Board of Trustees on June 16, 2020, contains two planned internal audits of the University’s use of CARES Act funds. To get ahead of the curve, FIU administrators should ensure that proper and adequate processes and documentation related to the distribution and use of CARES Act funds are maintained.
RECENT SUCCESS
The COVID-19 pandemic has tested the resolve of the entire FIU community. In stellar fashion, many within this accomplished family rose to the challenge. On April 22, 2020, FIU received $19,150,979 of Emergency Financial Aid Grants from the U.S. Department of Education pursuant to section 18004(a)(1) of the CARES Act. By June 25, 2020, the University distributed the entire amount in emergency financial aid grants to 9,551 students. The financial aid provided assistance with living expenses such as food, housing, transportation, utilities, medical, and Internet.
You can find more information on the following link:
https://www.fiu.edu/coronavirus/cares-act/index.html
MANAGE YOUR OUTSTANDING AUDIT ISSUES WITH THE OIA PANTHER AUDIT PLATFORM (PHASE I)
The FIU-bred OIA Panther Audit Platform was successfully launched on May 28, 2020. On June 1st, many of our University audit clients received their first monthly notification of outstanding audit recommendations pending implementation through the Platform. The OIA Panther Audit Platform is designed to assist management with the reporting and documenting of their efforts to mitigate reported audit findings. The response to the launching of the Platform has been exceptional. Please continue to look for these notifications on the first day of each month. In addition, feel free to contact us for technical assistance as you use this remarkable tool.
OTHER RESOURCES
- Need to report fraud, waste, and abuse? You may do so at:compliance.fiu.edu/hotline/(hotline)or auditors@fiu.edu.
- Need to report a Whistle-blower complaint? You must do so in writing to the OIA (auditors@fiu.edu) or call us at the following number : 305-348-2107
- State University System of Florida Board of Governors’ Regulations: flbog.edu