Finding 43156 (2022-001)

Information on Federal Program - Federal Family Education Loans Assistance Listing Number 84.032 Criteria ? Compliance Requirement C ? Cash Management ? The University must return all excess cash received from the U.S. Department of Education in a timely manner, if funds are not credited to an enrolled student?s account within 3 business days following the receipt of funds. Condition ? During the audit, we noted the following: ? The University has approximately $388,000 of excess cash held in a segregated federal funds cash account which relates to awards from prior years. Cause ? Prior management?s lack of oversight of student financial aid in prior years. The lack of proper oversight resulted in excess cash received from third party awarding agencies which was not properly refunded, causing the University to have excess cash on hand. Effect ? The University has excess cash on hand and was not in compliance with cash management requirements; however, the University has the funds properly held in an identifiable federal funds cash account, as they are currently investigating the best way to refund the excess cash. Questioned Costs ? None. Context ? We reviewed cash received and expended in a prior year, noting the University has additional funds on hand from prior awarding years. All current year funds were properly received and disbursed with no excess cash on hand from the current year. Indication of a Repeat Finding ? This is a repeat finding 2021-001 from prior year. Recommendation ? We recommend the University work with current and prior awarding agencies to determine the appropriate course of action to return the excess cash on hand. Views of Responsible Officials ? The cash balance of federal financial aid funds is not from the currently audited year but from many years ago. Because these funds go back to when the schools processed federal loans through the FFELP program, it has been difficult to reconcile these funds to the multiple lending institutions from which they came; some of which are no longer in existence. The University has taken great care not to comingle these funds and has protected them from being spent.