Finding 387177 (2023-009)

-
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-03-28

AI Summary

  • Core Issue: The University lacks proper records for Federal Direct Loans and Pell Grants drawdowns, risking compliance with cash management regulations.
  • Impacted Requirements: This finding relates to 34 CFR 668.162, which mandates adequate documentation to minimize the time between drawdown and disbursement.
  • Recommended Follow-Up: Implement a formal drawdown process with required documentation for review and approval to ensure compliance and proper record retention.

Finding Text

Cash Management DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University did not adequately maintain records for drawdowns of Federal Direct Loans (FDL) and Federal Pell Grants (Pell) to support compliance with cash management regulations. Criteria: 34 CFR 668.162 Questioned Costs: $-0- Context: During our audit, we tested 6 drawdowns of FDL and 6 drawdowns of Pell and each did not have adequate support for minimizing time between drawdown and disbursement. There did not appear to be a formal process nor clear understanding for the individual drawdown amounts. However the University provided a detail of federal aid disbursements to students thus we did a comparison of the year to date disbursements to the year to date drawdowns at the time of each drawdown tested. We noted the University did not appear to have drawn FDL and Pell funds in excess of disbursements based on this testing. Cause: Management oversight Effect: Potential noncompliance with cash management requirements and lack of proper record retention. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that the University implement and follow a formal process for making drawdowns and require that supporting documentation include evidence of review and approval and be retained to support compliance with cash management requirements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Cash Management Planned Corrective Action: The SFS office will provide the Business Office the types and amounts of funds disbursed. The Business Office will drawdown those amounts from the G5 system. The SFS Office will maintain a roster of the disbursements to validate the amount of funds requested. Person Responsible for Corrective Action Plan: Bryan Taylor, Associate Director of SFS Processing Anticipated Date of Completion: April 2024

Categories

Student Financial Aid Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 387156 2023-002
    Material Weakness
  • 387157 2023-002
    Material Weakness
  • 387158 2023-002
    Material Weakness
  • 387159 2023-002
    Material Weakness
  • 387160 2023-002
    Material Weakness
  • 387161 2023-002
    Material Weakness
  • 387162 2023-003
    Material Weakness Repeat
  • 387163 2023-003
    Material Weakness Repeat
  • 387164 2023-003
    Material Weakness Repeat
  • 387165 2023-003
    Material Weakness Repeat
  • 387166 2023-004
    Material Weakness
  • 387167 2023-004
    Material Weakness
  • 387168 2023-005
    Significant Deficiency
  • 387169 2023-006
    Significant Deficiency
  • 387170 2023-006
    Significant Deficiency
  • 387171 2023-006
    Significant Deficiency
  • 387172 2023-006
    Significant Deficiency
  • 387173 2023-006
    Significant Deficiency
  • 387174 2023-006
    Significant Deficiency
  • 387175 2023-007
    -
  • 387176 2023-008
    -
  • 387178 2023-009
    -
  • 963598 2023-002
    Material Weakness
  • 963599 2023-002
    Material Weakness
  • 963600 2023-002
    Material Weakness
  • 963601 2023-002
    Material Weakness
  • 963602 2023-002
    Material Weakness
  • 963603 2023-002
    Material Weakness
  • 963604 2023-003
    Material Weakness Repeat
  • 963605 2023-003
    Material Weakness Repeat
  • 963606 2023-003
    Material Weakness Repeat
  • 963607 2023-003
    Material Weakness Repeat
  • 963608 2023-004
    Material Weakness
  • 963609 2023-004
    Material Weakness
  • 963610 2023-005
    Significant Deficiency
  • 963611 2023-006
    Significant Deficiency
  • 963612 2023-006
    Significant Deficiency
  • 963613 2023-006
    Significant Deficiency
  • 963614 2023-006
    Significant Deficiency
  • 963615 2023-006
    Significant Deficiency
  • 963616 2023-006
    Significant Deficiency
  • 963617 2023-007
    -
  • 963618 2023-008
    -
  • 963619 2023-009
    -
  • 963620 2023-009
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $21.60M
84.063 Federal Pell Grant Program $6.22M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $4.09M
84.425 Covid-19 Education Stabilization Fund Heerf - Minority Serving Institutions $1.29M
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $426,874
84.033 Federal Work-Study Program $389,051
84.007 Federal Supplemental Educational Opportunity Grants $324,032
84.038 Federal Perkins Loan Program $269,283
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $26,000