Finding 38126 (2022-006)

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Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-05-30
Audit: 36033
Organization: Gratz College (PA)
Auditor: Kreischer Miller

AI Summary

  • Core Issue: The College did not disburse federal funds after withdrawing them, leading to noncompliance with cash management rules.
  • Impacted Requirements: Entities must minimize the time between receiving federal funds and disbursing them.
  • Recommended Follow-up: The College should create and enforce procedures to ensure compliance with federal fund management requirements.

Finding Text

Finding 2022-006 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, 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: 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. Condition: The College withdrew all funds remaining in the G5 grants system and did not disburse the funds. Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.

Corrective Action Plan

Finding 2022-006 Corrective Action Plan The College acknowledges withdrawing all remaining funds from the appropriate awarding agency before the expiration date of December 31, 2021. However, it should be noted that the disbursement of these funds drawn was in anticipation of settling an invoice for an allowable expense within three calendar days of the draw. However, because of unforeseen delays on the part of the vendor, the invoice was settled outside of this timeframe. It should be further noted that all funds drawn are kept in a non-interest bearing bank account separate from the College?s normal operating account (from which all vendor invoices are paid) until the funds are disbursed. Upon disbursement, the funds are then transferred to the College?s operating account. To ensure that disbursements of federal awards are made within the allowed timeframe, the College?s management will have received an invoice for an allowable expenditure before withdrawing federal funds to settle that invoice. Anticipated Completion Date The College anticipates completion of this corrective action on or before August 31, 2023. Names of Contact People Responsible for Corrective Action Thomas R. Cipriano, Jr. ? Manager of Business Operations and Facilities Ross Holgado ? Manager of Financial Reporting

Categories

Cash Management

Other Findings in this Audit

  • 38121 2022-001
    Material Weakness Repeat
  • 38122 2022-002
    - Repeat
  • 38123 2022-003
    -
  • 38124 2022-004
    Material Weakness
  • 38125 2022-005
    Significant Deficiency
  • 38127 2022-001
    Material Weakness Repeat
  • 38128 2022-002
    - Repeat
  • 38129 2022-006
    -
  • 38130 2022-001
    Material Weakness Repeat
  • 38131 2022-002
    - Repeat
  • 38132 2022-005
    Significant Deficiency
  • 38133 2022-006
    -
  • 614563 2022-001
    Material Weakness Repeat
  • 614564 2022-002
    - Repeat
  • 614565 2022-003
    -
  • 614566 2022-004
    Material Weakness
  • 614567 2022-005
    Significant Deficiency
  • 614568 2022-006
    -
  • 614569 2022-001
    Material Weakness Repeat
  • 614570 2022-002
    - Repeat
  • 614571 2022-006
    -
  • 614572 2022-001
    Material Weakness Repeat
  • 614573 2022-002
    - Repeat
  • 614574 2022-005
    Significant Deficiency
  • 614575 2022-006
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.20M
84.425 Covid 19 - Education Stabilization Fund $204,099
84.425 Covid-19 - Education Stabilization Fund $15,990
84.063 Federal Pell Grant Program $6,495