Remington College’s Use of Higher Education Emergency Relief Fund Student Aid and Institutional Grants

Submitting OIG:

Report Description:

The objective of our audit was to determine if Remington College used the Student Aid (Assistance Listing Number (ALN) 84.425E) and Institutional (ALN 84.425F) portions of its Higher Education Emergency Relief Fund (HEERF) grant funds for allowable and intended purposes. Remington College generally used the Student Aid portion of its HEERF grant funds for allowable and intended purposes but did not always use the Institutional portion of its funds in accordance with Federal requirements. We found that Remington College spent Institutional funds for several unallowable purposes and did not always follow Federal procurement and cash management requirements.

Date Issued:

Tuesday, September 28, 2021

Agency Reviewed / Investigated:

Department of Education

Submitting OIG-Specific Report Number:

A20CA0017

Component, if applicable:

Office of Post Secondary Education

Location(s):

Agency-Wide

Type of Report:

Audit

Special Projects:

Pandemic

Questioned Costs:

$784,506

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
FY21A20CA0017021624v100SECURED.pdf	1.61 MB

Additional Details Link:

https://www2.ed.gov/about/offices/list/oig/auditreports/fy2021/a20ca0017.pdf

Recommendation Number	Recommendation Status	Significant Recommendation
2.1	Open	Yes
Require Remington College to return to the Department the $80,121 in Institutional grant funds spent beyond the supplemental Institutional grant period or reallocate the funds to other allowable costs.
2.2	Open	Yes
Clarify whether the costs that Remington College initially charged to its Institutional grant for student computers were allowable under the law and existing guidance, and determine whether Remington College’s subsequent reallocation of costs for other expenses in the amount of $64,985 (corrective actions) was appropriate.
2.3	Open	Yes
Determine whether the $639,400 that Remington College charged to its Institutional grant for contracts awarded without a competitive procurement process was reasonable when compared to the quality and costs of suitable alternatives, and if not, require appropriate corrective actions.
2.4	Open	Yes
Require Remington College to incorporate in its policies and procedures for managing HEERF grant funds the Federal requirements related to charging only allowable costs during the grant performance period, using competitive processes for selecting vendors when purchases are over $10,000, obtaining price or rate quotations from an adequate number of qualified vendors for purchases between $10,000 and $250,000, and using formal procurement methods for purchases over $250,000.
2.5	Open	Yes
Require Remington College to ensure that school officials responsible for making purchasing decisions receive sufficient training on Federal rules and regulations related to grant administration and management.
3.1	Open	Yes
Require Remington College to incorporate in its policies and procedures for managing Institutional grant funds the Federal cash management requirements related to minimizing the time between drawing down and spending Federal grant funds, including HEERF funds; maintaining the funds in an interest-bearing account; and remitting interest earned in excess of $500 in accordance with 2 C.F.R. § 200.305(b).
3.2	Open	Yes
Require Remington College to incorporate in its policies and procedures for managing Student Aid grant funds the Federal cash management requirements related to maintaining the funds in an interest-bearing account and remitting interest earned in excess of $500 in accordance with 2 C.F.R. § 200.305(b).
3.3	Open	Yes
Determine whether Remington College accurately calculated interest and ensure that the correct amount of interest is returned to the Federal government in accordance with 2 C.F.R. § 200.305(b)(9).

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

2.1

Open

Yes

Require Remington College to return to the Department the $80,121 in Institutional grant funds spent beyond the supplemental Institutional grant period or reallocate the funds to other allowable costs.

2.2

Open

Yes

Clarify whether the costs that Remington College initially charged to its Institutional grant for student computers were allowable under the law and existing guidance, and determine whether Remington College’s subsequent reallocation of costs for other expenses in the amount of $64,985 (corrective actions) was appropriate.