FINDING NO. 2023-002 - TRANSFER OF FUNDS BEYOND THE REQUIRED TIME LIMITS
CONDITION
During our field work in the cash management area, we noted funds that were requested to G-5 but not disbursed by UPM to minimize the time elapsing between the transfer of funds and disbursement as follows:
Descriotion Dates Amount
Funds received from G-5 on June 8, 2022 6/8/2022 $610,710.35
Funds disbursed during 2022-2023 Fiscal vear 2022-23 (525,362.27)
Available balance from funds received in 6/8/2022 6/30/2023 $75,348.08
Funds received from G-5 on June 22, 2023 6/22/2023 $319,251.71
Funds disbursed at the end of fiscal year 2022- 2023 6/30/2023 (45,000)
Available balance from funds received in
6/22/2023 6/30/2023 $274,251.71
RECOMMENDATION The University should reinforce the procedures the draw down of funds to comply with the regulation applicable for the transfer of funds through the G-5 system.
Corrective Action Plan:
"Corrective Action Plan: UPM acknowledges that recommendation 2023-002 by Mr. Santiago is correct; however, the Dean of Administration and Finance, who assumed this position on February 21, 2023, wishes to explain the reasons behind this occurrence. UPM managed the HEERF funds without prior experience and knowledge of their administration. The officials at that time were unclear about the rules and procedures for managing these funds because the contract details were not received by UPM, preventing them from establishing spending and disbursement policies. Additionally, UPM was without a president for 6 months, and after appointing a president, it operated for approximately a year without a permanent Dean of Administration and Finance. The employees in the Dean's office were not authorized for this level of decision-making, while time continued to pass. Furthermore, there were several changes in the members of our Higher Education Council. As soon as the Dean of Administration and Finance was appointed, consultations with the president were held to make decisions regarding the disbursement and expenses of these funds, which were implemented in June 2023. As a corrective action plan for the future, we will review all certifications related to federal funds management, prepare a comprehensive folder, and administer these funds while adhering to each of these measures. We will proactively identify our needs and align them with the award, clearly defining each process and protocol with the intention of compliance."
During the last fiscal year. the Council of Theological Education approved new regulations for:
1. Regulation for the Acquisition of Equipment, Materials, and Non-Personal Services at UPM.
2. Regulation for the Administration of Movable Property (Equipment) at the UPM.
hese new regulations complement the existing rules to ensure the integrity, preservation, accessibility, legibility, and legality of our financial actions. We will continue to work together to standardize our processes and address any non-compliance on our part.