Finding 12638 (2022-008)

Material Weakness
Requirement
C
Questioned Costs
$1
Year
2022
Accepted
2023-03-29
Audit: 17529
Organization: Barclay College (KS)
Auditor: Adamsbrown LLC

AI Summary

  • Core Issue: The College failed to disburse funds from the Higher Education Emergency Relief Fund within required timeframes.
  • Impacted Requirements: Funds should be disbursed within 15 days for Student Aid and 3 days for Institutional Aid after drawdown.
  • Recommended Follow-Up: Review and improve the reconciliation process to ensure timely disbursement of funds.

Finding Text

MATERIAL WEAKNESS 2022-008 Education Stabilization Fund ? Higher Education Emergency Relief Fund ? 84.425 ? Cash Management Criteria or specific requirement Per the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) for Higher Education Emergency Relief Fund (HEERF) II and the American Rescue Plan (ARP) for Higher Education Emergency Relief Fund (HEERF) III, the Student Aid Portion should be disbursed within 15 calendar days of the drawdown from G5, and the Institutional Aid Portion should be disbursed within 3 calendar days of the drawdown from G5. Condition During testing, it was discovered that funding was drawn down and not disbursed within the required timeframes. Cause The College was not aware of the cash management requirements associated with the program. Effect Funds were not disbursed timely. Context As of February 15, 2022, all HEERF Student portion awards had been drawn down, and the $313,928 HEERF III award amount was not disbursed to students until March 14, 2022. As of June 15, 2022, all HEERF Institutional and Strengthening Institutions Program (SIP) portion awards had been drawn down, and $98,532 remained to be disbursed as of year-end. Recommendation We recommend that the College review its reconciliation process and implement controls to ensure that funding is disbursed within the correct timeframe after being drawn down. Views of responsible officials and planned corrective actions See corrective action plan.

Categories

Questioned Costs Cash Management Material Weakness

Other Findings in this Audit

  • 12623 2022-003
    Significant Deficiency
  • 12624 2022-004
    Material Weakness
  • 12625 2022-003
    Significant Deficiency
  • 12626 2022-004
    Material Weakness
  • 12627 2022-005
    Significant Deficiency
  • 12628 2022-006
    Significant Deficiency
  • 12629 2022-004
    Material Weakness
  • 12630 2022-006
    Significant Deficiency
  • 12631 2022-007
    Significant Deficiency
  • 12632 2022-008
    Material Weakness
  • 12633 2022-009
    Material Weakness
  • 12634 2022-011
    Significant Deficiency
  • 12635 2022-008
    Material Weakness
  • 12636 2022-010
    Significant Deficiency
  • 12637 2022-011
    Significant Deficiency
  • 12639 2022-011
    Significant Deficiency
  • 589065 2022-003
    Significant Deficiency
  • 589066 2022-004
    Material Weakness
  • 589067 2022-003
    Significant Deficiency
  • 589068 2022-004
    Material Weakness
  • 589069 2022-005
    Significant Deficiency
  • 589070 2022-006
    Significant Deficiency
  • 589071 2022-004
    Material Weakness
  • 589072 2022-006
    Significant Deficiency
  • 589073 2022-007
    Significant Deficiency
  • 589074 2022-008
    Material Weakness
  • 589075 2022-009
    Material Weakness
  • 589076 2022-011
    Significant Deficiency
  • 589077 2022-008
    Material Weakness
  • 589078 2022-010
    Significant Deficiency
  • 589079 2022-011
    Significant Deficiency
  • 589080 2022-008
    Material Weakness
  • 589081 2022-011
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $682,538
84.063 Federal Pell Grant Program $480,533
84.033 Federal Work-Study Program $40,692
84.425 Education Stabilization Fund $40,019
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $18,860
84.007 Federal Supplemental Educational Opportunity Grants $11,800