FAC Explorer

Finding 34525 (2022-004)

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Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-05-07
Audit: 35792
Organization: Limestone University (SC)
Auditor: Cherry Bekaert LLP

AI Summary

  • Core Issue: HEERF funds were drawn down before the University completed its lost revenue estimate, violating cash management rules.
  • Impacted Requirements: Compliance with HEERF drawdown regulations, which state funds should only be accessed after obligations are confirmed.
  • Recommended Follow-Up: University management should review and adhere to all HEERF program guidelines to ensure proper fund management.

Finding Text

Finding 2022-004 ? Higher Education Emergency Relief Fund, CFDA# 84.425F Compliance Requirement: Cash Management Condition: Institutional Aid Portions of the Higher Education Emergency Relief Fund (?HEERF?) occurred before the funds were obligated. Criteria: Higher Education Emergency Relief Fund (?HEERF?) drawdowns should occur after the funds have been obligated. For lost revenue, the ?obligation? occurs on the date the institution completes its estimate of its amount of lost revenue after the estimation period. Cause: Lack of understanding by the University?s Vice President of Finance, Operations, and Administration. Context: The University?s lost revenue calculation for the year ended June 30, 2022 was calculated based on estimated lost revenue related to the year ended June 30, 2022. The institutional HEERF funds related to this lost revenue estimate were drawndown prior to the date the University completed its estimate of its amount of lost revenue. Effect: Lack of compliance with cash management compliance requirements. Recommendation: The University?s management should read and follow all HEERF program grant guidance regulations and guidelines. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.

Corrective Action Plan

Finding 2022-004 ? Higher Education Emergency Relief Fund, CFDA#84.425F The University is committed to following all guidelines in the HEERF programs and will amend any quarterly or annual reports as needed. All HEERF related transactions will be reviewed for compliance before executing the drawdowns or disbursements. The most recent disbursement of student funds followed a stringent process. HEERF requirements were reviewed prior to implementation between the business office and the financial aid office. Eligible students were verified by both offices. The disbursements were compiled by the controller and the amounts were put on student accounts by the director of student accounts. HEERF drawdowns were then requested from the general ledger accountant with the controller verifying the drawdowns reconciled with amount put on student accounts. Business office staff distributed the checks to students; signatures were required for pick up by the students. Responsible Parties: Eric McDonald, Interim VP of Finance and Administration emcdonald@limestone.edu 864-488-4522 Jeremy Whitaker, Associate VP of Finance and Administration jwhitaker@limestone.edu 864-488-4539

Categories

Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $27.59M
84.268 Federal Direct Student Loans $12.20M
84.063 Federal Pell Grant Program $3.90M
84.425 Education Stabilization Fund $2.89M
84.007 Federal Supplemental Educational Opportunity Grants $212,885
84.033 Federal Work-Study Program $159,416
84.031 Higher Education_institutional Aid $30,720