Finding Text
2020-005 Cash Management
FALN Number: 84.268 / 84.063 / 84.007 / 84.379 Program or Cluster Name: Federal Direct Student Loans / Federal Pell Grant Program / Federal Work-Study Program / Federal Supplemental Educational Opportunity Grants / Teacher Education Assistance for College and Higher Education (Student Financial Assistance Cluster)
Agency: U.S. Department of Education
Condition: We noted that the College did not follow internal procedures to ensure that Student Financial Assistance funds were not drawn down in excess of the institution’s immediate needs for disbursement to student accounts. In addition, there was no documentation available to verify that controls over the G5 drawdowns were reviewed or approved prior to initiation.
Status: Due to the closure of the College, various software systems were shutdown without downloading data to a backup drive. In addition, sufficient paper documentation was not maintained in supporting the activity of the College for both financial transactions and remaining compliance requirements in winding down the operations. Student and financial scholarship records could not be provided and as such the correction of the finding could not be verified. See current year finding 2021-002.