FAC Explorer

Finding 1205826 (2025-008)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-04-02
Audit: 397569
Organization: Dillard University (LA)
Auditor: SEAN M BRUNO CPAS

AI Summary

  • Core Issue: The University failed to provide documentation for all cash drawdowns, violating federal requirements.
  • Impacted Requirements: Compliance with Uniform Guidance § 200.305, which mandates documentation for cash drawdowns to ensure funds are used appropriately.
  • Recommended Follow-Up: Implement new procedures for documentation, enhance review processes, provide staff training, and conduct ongoing monitoring to ensure compliance.

Finding Text

Cash Management Federal Program and Specific Federal Award Identification CFDA Title and Number 84.031 Higher Education Institution Aid Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria Pursuant to Uniform Guidance § 200.305, institutions must maintain documentation supporting cash drawdowns and ensure that federal funds are drawn only for immediate cash needs and are supported by underlying expenditures. Conditions and Contexts During my testing, I noted twenty-five (25) transactions out of twenty-five (25) tested in which the University did not provide documentation to support the related drawdown requests. Cause The University did not maintain or provide adequate documentation to support drawdown activity. Questioned Costs For the purposes of this condition, I have not questioned any costs. Effect Without supporting documentation, there is no assurance that drawdowns were made in accordance with federal requirements, increasing the risk of excess cash on hand or unsupported use of federal funds. Repeat Finding No. Recommendation The University should implement procedures to ensure that all drawdowns are properly supported by detailed expenditure records and that documentation is retained and available for audit. Management should also perform periodic reviews of drawdown activity for compliance. Management’s Response The University acknowledges the finding related to missing documentation supporting cash drawdowns for the Higher Education Institutional Aid program. We recognize that federal regulations require all drawdown requests to be supported by underlying expenditures and appropriate supporting records. Corrective Actions 1. Implementation of Required Documentation Procedures The University has established a formal process requiring that all drawdown requests be supported by detailed expenditure reports before funds are drawn. Supporting documentation must be uploaded and retained in a shared electronic repository. 2. Enhanced Review and Approval Controls: Drawdown requests must now undergo a two step review process by Grants Management and the Controller’s Office to ensure compliance with cash management requirements prior to submission. 3. Staff Training: Relevant staff is updating training on Uniform Guidance §200.305 requirements and on maintaining complete documentation to support each drawdown. 4. Ongoing Monitoring: Periodic internal reviews will be conducted to confirm that all future drawdowns are documented, properly supported, and compliant with federal cash management standards. The University believes these actions will strengthen internal controls over cash drawdowns and ensure compliance with federal regulations moving forward.

Corrective Action Plan

Cash Management The University acknowledges the finding related to missing documentation supporting cash drawdowns for the Higher Education Institutional Aid program. We recognize that federal regulations require all drawdown requests to be supported by underlying expenditures and appropriate supporting records. Corrective Actions 1. Implementation of Required Documentation Procedures: The University has established a formal process requiring that all drawdown requests be supported by detailed expenditure reports before funds are drawn. Supporting documentation must be uploaded and retained in a shared electronic repository. 2. Enhanced Review and Approval Controls: Drawdown requests must now undergo a two step review process by Grants Management and the Controller’s Office to ensure compliance with cash management requirements prior to submission. 3. Staff Training: Relevant staff is updating training on Uniform Guidance §200.305 requirements and on maintaining complete documentation to support each drawdown. 4. Ongoing Monitoring: Periodic internal reviews will be conducted to confirm that all future drawdowns are documented, properly supported, and compliant with federal cash management standards. The University believes these actions will strengthen internal controls over cash drawdowns and ensure compliance with federal regulations moving forward.

Categories

Cash Management Subrecipient Monitoring

Other Findings in this Audit

  • 1205818 2025-002
    Material Weakness Repeat
  • 1205819 2025-003
    Material Weakness Repeat
  • 1205820 2025-004
    Material Weakness Repeat
  • 1205821 2025-005
    Material Weakness Repeat
  • 1205822 2025-006
    Material Weakness Repeat
  • 1205823 2025-011
    Material Weakness Repeat
  • 1205824 2025-007
    Material Weakness Repeat
  • 1205825 2025-011
    Material Weakness Repeat
  • 1205827 2025-009
    Material Weakness Repeat
  • 1205828 2025-010
    Material Weakness Repeat
  • 1205829 2025-011
    Material Weakness Repeat
  • 1205830 2025-011
    Material Weakness Repeat
  • 1205831 2025-011
    Material Weakness Repeat
  • 1205832 2025-011
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $9.87M
84.063 FEDERAL PELL GRANT PROGRAM $4.97M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $4.05M
12.630 BASIC, APPLIED, AND ADVANCED RESEARCH IN SCIENCE AND ENGINEERING $522,396
84.044 TRIO TALENT SEARCH $429,672
84.033 FEDERAL WORK-STUDY PROGRAM $286,248
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $280,908
84.042 TRIO STUDENT SUPPORT SERVICES $257,304
12.800 AIR FORCE DEFENSE RESEARCH SCIENCES PROGRAM $251,032
84.217 TRIO MCNAIR POST-BACCALAUREATE ACHIEVEMENT $238,039
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $197,089
84.120 MINORITY SCIECE AND ENGINEERING INPROVEMENT $191,930
81.049 OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM $189,415
93.364 NURSING STUDENT LOANS $118,577
47.075 SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES $108,941
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $104,784
94.066 AMERICORPS STATE AND NATIONAL $98,128
47.050 GEOSCIENCES $79,010
15.941 MISSISSIPPI NATIONAL RIVER AND RECREATION AREA STATE AND LOCAL ASSISTANCE $73,366
93.865 CHILD HEALTH AND HUMAN DEVELOPMENT EXTRAMURAL RESEARCH $60,063
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $53,142
66.616 ENVIRONMENTAL AND CLIMATE JUSTICE COMMUNITY CHANGE GRANTS PROGRAM $50,000
47.083 INTEGRATIVE ACTIVITIES $46,106
15.932 PRESERVATION OF HISTORIC STRUCTURES ON THE CAMPUSES OF HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCUS). $36,611
93.307 MINORITY HEALTH AND HEALTH DISPARITIES RESEARCH $27,632
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $22,569
84.425 EDUCATION STABILIZATION FUND $18,875
10.217 HIGHER EDUCATION - INSTITUTION CHALLENGE GRANTS PROGRAM $16,576
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $12,459
45.162 PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT $12,223
93.145 HIV-RELATED TRAINING AND TECHNICAL ASSISTANCE $6,900
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION€™S HEALTH $6,767
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $4,626
97.132 FINANCIAL ASSISTANCE FOR TARGETED VIOLENCE AND TERRORISM PREVENTION $4,229
12.902 INFORMATION SECURITY GRANTS $93
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $-714
93.368 21ST CENTURY CURES ACT - PRECISION MEDICINE INITIATIVE $-717