FAC Explorer

Finding 42908 (2022-006)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 51591
Organization: South Carolina State University (SC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The University failed to disburse funds from the COVID-19 relief programs within required timeframes, exceeding 15 days for Student Aid and 3 days for HBCUs Aid.
  • Impacted Requirements: Compliance with cash management rules under the CRRSAA and ARP, specifically regarding timely disbursement of funds.
  • Recommended Follow-up: Enhance internal controls and implement a reconciliation plan to ensure timely disbursement and compliance moving forward.

Finding Text

Identification of the Federal Program: COVID-19 Higher Education Emergency Relief Fund (?HEERF?) Student Aid Portion (?Student Aid Portion?) (Assistance Listing #84.425E) and HEERF Historically Black Colleges and Universities (?HBCUs Aid Portion?) (Assistance Listing #84.425J) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): C. Cash Management: In addition to these basic cash management principles, for Coronavirus Response and Relief Supplemental Appropriations Act (?CRRSAA?) HEERF II and America Rescue Plan (?ARP?) HEERF III, the Certification and Agreements and/or Supplemental Agreements requires that Student Aid Portion (AL #84.425E) should be disbursed within 15 calendar days of the drawdown from the U.S. Department U.S. Department of Education?s G5 grants system and Institutional Aid Portion, (a)(2), and (a)(3) funds (all other ALNs) should be disbursed within 3 calendar days of the draw down from G5. Condition: Student Aid Portion: For 1 period of time in excess of 15 calendar days during the year ended June 30, 2022, the University had cumulative drawn down funds that exceeded the cumulative disbursements. HBCUs Aid Portion: For 1 period of time in excess of 3 calendar days during the year ended June 30, 2022, the University had cumulative drawn down funds that exceeded the cumulative disbursements. Cause: Administrative and internal control oversight. Effect or Potential Effect: The University was not in compliance with the cash management requirements of the Education Stabilization Fund program. Questioned Costs: None. Context: Refer to the Condition section of this finding for the context. Identification as a Repeat Finding: No similar finding noted in the prior year. Recommendation: We recommend that the University enhances its internal controls to ensure compliance with the cash management requirements of the Education Stabilization Fund program. Views of Responsible Officials: To enhance the internal controls to ensure compliance with the cash management requirements of the Education Stabilization Fund program, the University will immediately implement a draw down/disbursement reconciliation plan. Our compliance committee will review each draw down, to ensure that disbursements are recorded in accordance with the Student Aid Portion and Institutional Aid Portion policies. The review of this process will be recorded and memorialized for the record.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 42895 2022-003
    Significant Deficiency Repeat
  • 42896 2022-007
    Significant Deficiency Repeat
  • 42897 2022-003
    Significant Deficiency Repeat
  • 42898 2022-007
    Significant Deficiency Repeat
  • 42899 2022-003
    Significant Deficiency Repeat
  • 42900 2022-007
    Significant Deficiency Repeat
  • 42901 2022-003
    Significant Deficiency Repeat
  • 42902 2022-007
    Significant Deficiency Repeat
  • 42903 2022-004
    Significant Deficiency
  • 42904 2022-005
    Significant Deficiency Repeat
  • 42905 2022-006
    Significant Deficiency
  • 42906 2022-005
    Significant Deficiency Repeat
  • 42907 2022-005
    Significant Deficiency Repeat
  • 42909 2022-008
    Significant Deficiency Repeat
  • 619337 2022-003
    Significant Deficiency Repeat
  • 619338 2022-007
    Significant Deficiency Repeat
  • 619339 2022-003
    Significant Deficiency Repeat
  • 619340 2022-007
    Significant Deficiency Repeat
  • 619341 2022-003
    Significant Deficiency Repeat
  • 619342 2022-007
    Significant Deficiency Repeat
  • 619343 2022-003
    Significant Deficiency Repeat
  • 619344 2022-007
    Significant Deficiency Repeat
  • 619345 2022-004
    Significant Deficiency
  • 619346 2022-005
    Significant Deficiency Repeat
  • 619347 2022-006
    Significant Deficiency
  • 619348 2022-005
    Significant Deficiency Repeat
  • 619349 2022-005
    Significant Deficiency Repeat
  • 619350 2022-006
    Significant Deficiency
  • 619351 2022-008
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $16.56M
84.425 Education Stabilization Fund $16.37M
84.063 Federal Pell Grant Program $7.29M
84.031 Higher Education_institutional Aid $3.52M
10.512 Agriculture Extension at 1890 Land-Grant Institutions $2.62M
10.205 Payments to 1890 Land-Grant Colleges and Tuskegee University $2.46M
93.397 Cancer Centers Support Grants $1.16M
84.007 Federal Supplemental Educational Opportunity Grants $838,989
84.263 Innovative Rehabilitation Training $485,874
15.904 Historic Preservation Fund Grants-in-Aid $457,808
10.216 1890 Institution Capacity Building Grants $426,061
10.524 Scholarships for Students at 1890 Institutions (b) $372,758
84.042 Trio_student Support Services $289,301
59.037 Small Business Development Centers $264,636
84.129 Rehabilitation Long-Term Training $253,045
84.382 Strengthening Minority-Serving Institutions $231,201
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $191,014
84.033 Federal Work-Study Program $166,068
81.RD Department of Energy $150,198
84.120 Minority Science and Engineering Improvement $138,660
84.264 Rehabilitation Training_continuing Education $127,955
47.076 Education and Human Resources $127,230
10.500 Cooperative Extension Service $98,726
84.066 Trio_educational Opportunity Centers $82,078
10.328 National Food Safety Training, Education, Extension, Outreach, and Technical Assistance Competitive Grants Program $72,263
47.083 Integrative Activities $70,382
10.514 Expanded Food and Nutrition Education Program $62,787
20.701 University Transportation Centers Program $60,924
45.160 Promotion of the Humanities_fellowships and Stipends $60,348
84.153 Business and International Education Projects $50,002
47.049 Mathematical and Physical Sciences $44,553
10.311 Beginning Farmer and Rancher Development Program $37,384
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $36,975
12.598 Centers for Academic Excellence $31,753
45.313 Laura Bush 21st Century Librarian Program $24,373
93.350 National Center for Advancing Translational Sciences $22,933
10.443 Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers $22,411
10.771 Rural Cooperative Development Grants $21,359
10.912 Environmental Quality Incentives Program $11,674
10.523 Centers of Excellence at 1890 Institutions (b) $11,600
45.129 Promotion of the Humanities_federal/state Partnership $10,208
98.001 Usaid Foreign Assistance for Programs Overseas $7,915
93.866 Aging Research $7,411
10.525 Farm and Ranch Stress Assistance Network Competitive Grants Program (b) $6,861
11.417 Sea Grant Support $4,513
43.008 Space Grant $3,604
10.515 Renewable Resources Extension Act and National Focus Fund Projects $3,079
84.038 Federal Perkins Loan Program $0