Finding Text
# 2022-001 CASH MANAGEMENT Higher Education Emergency Relief Funding Assistance Listing No. 84.425E and 84.425F U.S. Department of Education 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 ED?s G5 grants system and Institutional Aid Portion, (a)(2), and (a)(3) funds (all other ALNs) should be disbursed within 3 calendar days of the drawdown from G5. For lost revenue, the ?obligation? occurs on the date the institution completes its estimate of its amount of lost revenue after the estimation period. Condition and Context The University did not disbursement certain Student Aid Portion within the 15-calendar day threshold and (a)(2) drawdown funding within the 3-calendar day threshold. Questioned Cost None Cause The University made drawdowns of funding without having allowable expenditures designated to match the drawdown within the required timeframe. Effect The University was not in compliance with the cash management requirement of the HEERF agreements.Recommendation We recommend the University to consistently adhere to the disbursement timing requirements of the grant. We recommend the University to drawdown HEERF funding when the University has allowable expenditures that have occurred or are going to occur within the 3 or 15-day calendar threshold. Views of Responsible Officials and Planned Corrective Action The University concurs with the finding and will adhere to the disbursement timing requirements of the HEERF II and HEERF III awards in accordance with the Certification and Agreements and/or Supplemental Agreements. To ensure compliance with the 3-day or 15-day calendar threshold, funds will be drawn down at the time of, or after the occurrence of the allowable expenditures