Finding Text
Finding 2023-002
Federal Assistance Listing Number: 84.425
Subprogram Number(s): 84.425E, 84.425N, and 84.425F
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 537 days later
(Institutional Aid Portion (CARES I & CARES II)), 609 days later (FIPSE – Student Aid), and 508 days
later (Institutional Aid Portion (CARES III)).
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.
Context: 10 sample selections ($19,034) out of a sample of 10 items from a population of 34 items
($47,147) were tested.
Identification of a Repeat Finding: 2022-005
Recommendation: We recommend that the College develop and implement procedures to ensure
that federal funds are administered in accordance with program compliance requirements.