Finding 21824 (2022-008)

Material Weakness
Requirement
C
Questioned Costs
$1
Year
2022
Accepted
2022-11-29

AI Summary

  • Core Issue: The institution did not disburse ARP HEERF III student grants within the required 15 days, causing delays in emergency funds for students.
  • Impacted Requirements: Compliance with cash management rules for timely disbursements as outlined in federal agreements.
  • Recommended Follow-Up: Enhance cash management controls and monitor for further guidance from the Department of Education.

Finding Text

FINDING 2022-008: CASH MANAGEMENT - UNTIMELY DISBURSEMENTS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: HIGHER EDUCATION EMERGENCY RELIEF FUNDS ALN#: 84.425E & 84.425F FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Cash Management (C.) - Student Grant Disbursements Criteria: For CRRSAA HEERF II and ARP HEERF III, the Certification and Agreements and/or Supplemental Agreements requires that Student Aid Portion (ALN 84.425E) should be disbursed within 15 calendar days of the drawdown from the Department's G5 grant systems and all other ALN's should be disbursed within 3 calendar days of the drawdown from G5. Condition: The Institution failed to disburse their ARP HEERF III student grants within 15 calendar days of the drawdown from G5. We will qualify our opinion for this attribute. Cause: The condition was caused by administrative oversights. Effect: The result is students were not disbursed emergency grant funds in a timely manner. The Institution drew down their ARP HEERF III student grant award on August 12, 2021 and did not disburse funds to students until March 1, 2022. Question Costs: $293,027 Recommendation: We recommend the Institution increase controls over cash management and await further guidance from the Department. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

Finding 2022-008 ? Cash Management ? Untimely Disbursements During the audit, it was noted that Student Aid Portion grant funds were not disbursed within 15 calendar days of the drawdown from G5. The Institution agrees with the finding. The Institute agrees with this finding, the funds were disbursed later than 15 days after drawdown of the funds. The school was aware that the funds were not disbursed in a timely manner due to timing issues within the department that was responsible to release the funds. In the future, the school will better prepare the checks and letters, so that the drawdown will be completed once the school is ready to release the funds.

Categories

Questioned Costs Cash Management Reporting

Other Findings in this Audit

  • 21815 2022-002
    -
  • 21816 2022-003
    - Repeat
  • 21817 2022-001
    - Repeat
  • 21818 2022-002
    -
  • 21819 2022-003
    - Repeat
  • 21820 2022-004
    Material Weakness
  • 21821 2022-005
    Material Weakness
  • 21822 2022-006
    Material Weakness
  • 21823 2022-007
    Material Weakness
  • 21825 2022-004
    Material Weakness
  • 21826 2022-005
    Material Weakness
  • 21827 2022-006
    Material Weakness
  • 21828 2022-007
    Material Weakness
  • 21829 2022-008
    Material Weakness
  • 598257 2022-002
    -
  • 598258 2022-003
    - Repeat
  • 598259 2022-001
    - Repeat
  • 598260 2022-002
    -
  • 598261 2022-003
    - Repeat
  • 598262 2022-004
    Material Weakness
  • 598263 2022-005
    Material Weakness
  • 598264 2022-006
    Material Weakness
  • 598265 2022-007
    Material Weakness
  • 598266 2022-008
    Material Weakness
  • 598267 2022-004
    Material Weakness
  • 598268 2022-005
    Material Weakness
  • 598269 2022-006
    Material Weakness
  • 598270 2022-007
    Material Weakness
  • 598271 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.89M
84.425 Education Stabilization Fund $460,753
84.063 Federal Pell Grant Program $408,794
84.007 Federal Supplemental Educational Opportunity Grants $23,390