Finding Text
2024-004 Department of Education
Education Stabilization Fund: Higher Education Emergency Relief Find (HEERF)
Federal Financial Assistance Listing 84.425F Institutional Portion
Award Number P425F202657, Award Years 2020 and 2021
Cash Management
Material Weakness in Internal Controls over Compliance and Material Non-Compliance
Criteria: For CRRSSA HEERF II and ARP HEERF III, the certification and agreements indicate the institutional aid
portion of funding should be disbursed within three calendar days from the drawdown from G5.
Condition: During testing over the requirement, it was noted that the amount drawn on October 25, 2023, was
not spent until November 2023, January 2024, or was never spent.
Cause: The School District was at the end of the 120-day liquidation period of performance so drew all remaining
available funding based on open purchase orders.
Effect: The School District received, but did not disburse, the funds within the allowed three-day timeframe.
Questioned Costs: $311,480
Context/Sampling: A nonstatistical sample of two draw requests out of five total draw requests were tested. Of
the $311,480 received, $179,409 was spent in November 2023 and April 2024 (also reported under period of
performance) and $132,071 was never spent (also reported under allowable costs).
Repeat Finding from Prior Year(s): No.
Recommendation: We recommend that reimbursement requests be submitted at the time of or after payments
for the expenses are made to ensure that timing of the reimbursement is received at the same time or after
payments are made.
Views of Responsible Officials: Management agrees with the finding.