Finding Text
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work-Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268.
Program Year - June 1, 2023 - May 31, 2024
Criteria or Specific Requirement – Cash Management – Under the advance payment method, the University’s request must not exceed the amount immediately needed to disburse funds to students. A disbursement of funds occurs on the date the University credits a student’s account or pays a student or parent directly with either SFA funds or its own funds. Under the advance payment method, the University must make the disbursement as soon as administratively feasible, but no later than three business days following the receipt of funds. (34 CFR 668.162)
Condition – An additional draw of approximately $112,574 was made in excess of the amount disbursed and not returned within three business days.
Questioned Costs – CFDA 84.268 - $112,574
Context - The University was overdrawn at fiscal year end on direct loan funding.
Cause - Proper reconciliations were not timely performed to identify the error prior to the draw and at year end.
Effect - Federal funding pertaining to Direct Loans was overdrawn at year end.
Identification as a Repeat Finding - No
Recommendation - We recommend the University perform reconciliations timely and prior to drawing the related federal funding.
Views of Responsible Officials and Planned Corrective Action - There is no disagreement with the audit finding. Corrections to the drawdown process will be made.