Finding 477959 (2023-003)

- Repeat Finding
Requirement
C
Questioned Costs
$1
Year
2023
Accepted
2024-07-09
Audit: 314668
Organization: Paine College (GA)

AI Summary

  • Core Issue: The College has significant excess cash in federal programs, totaling over $1 million, indicating poor cash management.
  • Impacted Requirements: Non-compliance with federal cash management regulations could lead to sanctions from the U.S. Department of Education.
  • Recommended Follow-Up: Limit future fund drawdowns and develop a repayment plan to address the excess cash issue.

Finding Text

Finding 2023-003 - U. S. Department of Education (USDE). Title /Ill and TRIO Programs (significant deficiency): Information on the federal programs - Federal Title Ill Program, Strengthening Historically Black Colleges and Universities, CFDA No. 84.0318, June 30, 2023, Student Aid and Fiscal Responsibility Act (SAFRA), CFDA No. 84.0318, June 30, 2023, Upward Bound, CFDA No. 84.047A, June 30, 2023, Student Support Services, CFDA No. 84.042A, June 30, 2023. Criteria - Federal regulations regarding cash management. Condition - Non-compliances were noted as more fully described in the context below. Context - The Federal Title Ill Program had excess cash of $868,391 at June 30, 2023. The College also had excess cash of $85,212 in the Upward Bound Program and $226,381 in the Student Support Services Program at June 30, 2023. Cause - Prior year excess cash and mismanagement has not been repaid or resolved. Effect- The College's participation in the Title 11a1n d TRIO Programs could be subject to USDE sanctions as applicable. Repeat Finding- Yes. Auditor's Recommendation - We recommend the College limit the funds it draws down for these programs in order to control and manage its cash better. View of Responsible Officials - Management concurs with this finding. The College will implement a plan to repay the excess cash in future years to eliminate the excess cash balance.

Corrective Action Plan

Finding 2023-002- U.S. Department of Education (USDE). Title 111a1n d TRIO Programs: The Federal Title Ill Program had excess cash of $868,391 at June 30, 2023. The College also had excess cash of $85,212 in the Upward Bound Program and $226,381 in the Student Support Services Program atJune 30, 2023. Auditor's Recommendation - We recommend the College limit the funds it draws down for these programs in order to control and manage its cash better. Corrective Action - Management concurs with this finding. The College will implement o pion to repay the excess cash in the future years to eliminate the excess cash balance.

Categories

Questioned Costs Cash Management Significant Deficiency

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.85M
84.063 Federal Pell Grant Program $1.15M
84.033 Federal Work-Study Program $447,295
84.047 Trio_upward Bound $415,291
84.042 Trio_student Support Services $270,423
84.031 Higher Education_institutional Aid $269,581
84.007 Federal Supplemental Educational Opportunity Grants $227,789
84.120 Minority Science and Engineering Improvement $213,212
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $83,765
47.076 Education and Human Resources $34,577
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $0
84.425 Education Stabilization Fund $0