Finding Text
2022-002 HEERF Institutional Aid Portion ? Assistance Listing No. 84.425F, Grant Period May 20, 2020 through May 11, 2022; and Higher Education Emergency Relief Fund (HEERF) Student Aid Portion ? Assistance Listing No. 84.425E, grant period April 25, 2020 through May 11, 2022 Condition: During the year ended June 30, 2022, Eastern Center for Arts and Technology received HEERF grant funds totaling $726,580, of which $720,080 was received in July 2021. However, funds totaling $110,676 remained unexpended as of June 30, 2022. Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Cause: Eastern Center for Arts and Technology did not adequately monitor the amount and the timing of the expenditure of the federal funds received. Effect: Eastern Center for Arts and Technology did not minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement for program costs and, therefore, did not comply with the Cash Management compliance requirement. Context: The financial accounting records reflect that federal funds totaling $726,580 were received during the year ended June 30, 2022 and that $110,676 remained unexpended as of June 30, 2022. Recommendation: Eastern Center for Arts and Technology should more closely monitor the timing of the expenditure of federal funds received. In addition, Eastern Center for Arts and Technology should return unexpended funds once the grant period has ended. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.