Finding Text
2023-007 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: The Secretary considers excess cash to be any amount of title IV, HEA program funds,
other than Federal Perkins Loan program funds, that an institution does not disburse to students
by the end of the third business day following the date the institution received those funds from
the Secretary or deposited or transferred to its depository account previously disbursed title IV,
HEA program funds, such as those resulting from award adjustments, recoveries, or
cancellations. An institution may maintain for up to seven days an amount of excess cash that
does not exceed one percent of the total amount of funds the institution drew down in the prior
award year. The institution must return immediately to the Secretary any amount of excess cash
over the one-percent tolerance and any amount of excess cash remaining in its account after the
seven-day tolerance period. (34 CFR 668.163, 668.166).
Condition: Throughout the year cash on hand exceeded the immediate disbursement needs for
three working days and the excess cash tolerances were not eliminated within seven working
days. We consider this condition to be a significant deficiency in internal control over
compliance relating to the Cash Management compliance requirement and is not a repeat finding.
Questioned Costs: $25,644.
Effect: As a result, the Institution is retaining federal monies longer than allowed.
Recommendation: We recommend Cottey College implement procedures and cash controls to
avoid having excess cash.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.