Finding 562139 (2024-007)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-06-02

AI Summary

  • Core Issue: The Institution delayed disbursing HEERF Student Aid funds, with payments made 90 to 269 days after the drawdown.
  • Impacted Requirements: Funds must be distributed within 15 calendar days of drawdown; currently, $130,093 remains undistributed.
  • Recommended Follow-up: Implement a process to ensure timely disbursement of funds to comply with regulations.

Finding Text

Cash Management: Late Disbursements of HEERF Student Aid Portion We noted that the one cash drawdown made by the Institution from the HEERF Student Aid Portion on March 17, 2023 amounting to $201,814 was not distributed within 15 calendar days from the date of the drawdown. Disbursements of student aid during the year were made 90 to 269 days from the date of the drawdown. As of February 29, 2024, the HEERF Student Aid Portion fund undistributed amounted to $130,093.

Corrective Action Plan

While HEERF funding will no longer be available in subsequent years, we recognize the importance of ensuring timely and compliant disbursement processes for all federal grants. To address this finding and prevent similar issues in future grant programs, the Institution has taken or will take the following corrective actions: 1. Internal Process Review: We are conducting a comprehensive review of our federal funds management processes, with a focus on cash drawdowns and disbursement timelines. 2. Grant Compliance Training: Staff responsible for federal grant administration will receive enhanced training on compliance requirements, including drawdown and disbursement timelines, to ensure all applicable deadlines are met. 3. Standard Operating Procedures (SOPs): We are developing and updating SOPs to document internal controls and step-by-step processes for managing federal grant funds, ensuring clarity and accountability at all levels. 4. Monitoring and Oversight: A structured internal monitoring process will be implemented to track disbursement deadlines and ensure timely distribution of student aid funds. 5. Cross-Functional Coordination: Financial Aid and Finance teams will collaborate more closely to streamline communication and execution of disbursements within required timeframes. Personnel Responsible for Implementation: Danielle Skinner Position of Responsible Personnel: President Expected Date of Implementation: Immediate

Categories

Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $832,607
84.268 Federal Direct Student Loans $495,733
84.425 Education Stabilization Fund $330,146