Finding Text
Criteria: Under the Heightened Cash Monitoring 1 (HCM1) payment method as stated in 34 CFR 668.162(d), the College must first make distributions to eligible students and parents and pay any remaining credit balances before request or receipt of funds for the amount of those disbursements from the U.S. Department of Education. Condition: During the year ended May 31, 2024 the College disbursed $63,000of SEOG funds to students, but drew down their entire authorized amount of $123,626 resulting in an overdraw of $60,626. Cause: The College did not follow the procedures for requesting federal funds and disbursing them to student accounts timely as required by the HCM1 payment method. Effect: The College was not in compliance with the HCM1 drawdown payment method.