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.