Finding Text
Federal Program – Student Financial Assistance Cluster – Assistance Listing Numbers 84.007, Federal Supplemental Education Opportunity Grants and 84.268, Federal Direct Student Loans – U.S. Department of Education Program Year 2024–2025 Criteria or Specific Requirement – Cash Management – 34 CFR §668 Subpart K Condition – The University maintained $163,740 of excess cash for the Federal Supplemental Educational Opportunity Grants and Federal Direct Student Loans programs for approximately two months (July 25, 2024 through September 19, 2024), which exceeds the seven-day excess cash tolerance window outlined in 34 CFR §668.166. Questioned Costs – N/A Context – Out of a population of 23 cash drawdowns during fiscal year 2025, three were selected for testing. One of these drawdowns was not compliant with the cash management requirements. Our sample was not, and was not intended to be, statistically valid. Effect – The University did not appropriately return excess cash to the U.S. Department of Education and, therefore, was out of compliance with excess cash compliance requirements. Cause – The University did not have appropriate controls in place to ensure compliance with relevant requirements. Identification as a Repeat Finding – N/A Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding cash management compliance to ensure that all cash drawdowns are made and distributed to students in accordance with the relevant compliance requirements. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.