Finding Text
Cash Management Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.007 Federal Supplemental Educational Opportunity Grant Program and 84.033 Federal Work-Study Program Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The University drew the full 2024-2025 authorization for federal supplemental educational opportunity grants (FSEOG) funds and federal work study (FWS) in July 2024 prior to disbursing the funds to students. Criteria: 34 CFR 668.162(a), 34 CFR 668.162(c) Questioned Costs: $0 Context: Excess cash on hand from the FSEOG and FWS programs ranged from approximately $131,000 to $913,000 per month during the fiscal year. Cause: Oversight by the University Effect: Non-compliance with cash management requirements to minimize the time between drawing the Title IV funds and disbursement of those funds to students. Cash on hand in excess of allowable levels and time frames may result in interest owed back to the Department of Education on excess cash. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University review student disbursements reports generated to ensure compliance with cash management requirements to disburse aid first before drawing FSEOG and FWS. We also recommend the University determine the amount of interest to be returned on the excess cash and return amounts greater than $500 to the Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.