Finding Text
Finding No. 2022-004?HEERF Cash Management Federal Agency: U.S. Department of Education Program: COVID-19 Education Stabilization Fund: ALN: 84.425 Criteria: 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 DOE?s G5 grants system and Institutional Aid Portion, (a)(2), and (a)(3) funds (all other ALNs) should be disbursed within three calendar days of the drawdown from G5. Condition: There were two drawdowns from the G5 during the year, one for the institutional portion and one for the student portion. There were $11,340 of funds disbursed after 15 days of the drawdown from DOE?s G5 grants system for student portion and $25,832 of funds disbursed after three days of the drawdown from the DOE?s G5 grant system for the institutional portion. Questioned Costs: None. Prevalence: Identified in two out of two disbursements tested. The sample was not intended to be, and was not, a statistically valid sample. Effect: Cash was not disbursed within the required timeframe. Improper cash management could result in the DOE withholding payments to the Conservatory. Cause: This issue is the result of improper tracking of expenditures to ensure that they are expended within the required timeframe or returned to the DOE. Recommendation: We recommend management implement a control to regularly monitor disbursements and reconcile to drawdowns to ensure applicable requirements are met. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and corrective actions will be made.