Finding Text
Finding 2022-001 ? 84.425 COVID-19 Education Stabilization Fund Federal Agency ? U.S. Department of Education Grant Period ? Year ended June 30, 2022 Criteria ? A requirement of and accepting the Higher Education Emergency Relief Fund (HEERF) grant is the compliance with cash management requirements which state that Institutional funds will be disbursed within three calendar days of the drawdown from G5. Condition ? Per review of the G5 draw detail, it was noted that the funding awarded through round three American Rescue Plan (ARP) was all drawn at one time prior to expenditures being incurred. Cause ? The prior Controller was not familiar with the cash management requirement and informed the Bursar to draw all the Institutional funds when they were posted as available. Effect ? The College drew the full $1,465,767 in June 2021 and expenditure of approximately $571,000 was not incurred until March 31, 2022, which was well beyond the three day cash management requirement. Recommendation ? The College needs to ensure they are familiar with specific funding requirements for all grants received to ensure compliance with the funder. View of Responsible Officials ? The College agrees with the auditor?s recommendation, however, the HEERF funding has been fully expended and the College is scheduled to cease academic operations and close permanently after the spring 2023 semester.