Finding Text
Finding 2022-005 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance ? Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 119 days later (Student Aid Portion), 35 days later (FIPSE - Institutional), and 15 days later (FIPSE ? Student Aid). Cause: The College withdrew funds under the Student Aid Portion (misapplied funds ? see Finding 2022-003) and under FIPSE to pay for the purchase of audio-visual equipment. Delivery of equipment and presentation of invoice were delayed, and therefore, the funds should have been returned to the G5 grants system. The College withdrew funds under FIPSE for student awards and applied the disbursement guidelines under the Student Aid Portion of HEERF rather than the disbursement guidelines under FIPSE. Effect: The College is noncompliant with the requirements under Cash Management. Context: 4 sample selections ($8,400) out of a sample of 7 items from a population of 68 items ($159,999) were tested. The portion of the population of student awards that was disbursed 15 days after the draw from G5 was 46 items ($95,800). Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.