Finding Text
Finding 2022-002: Untimely Distribution of Student Aid Funds Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) Assistant Listing No: 84.425E Federal Award Year: 2022 Finding Type: Material Weakness Compliance Requirement: Cash Management Criteria Based on the HEERF cash management compliance requirements, including American Rescue Plan HEERF III and related agreements, the student aid portion of HEERF funding should be disbursed within 15 calendar days of the drawdown from the Department of Education?s G5 grant system. Condition and Context We noted that as of December 31, 2022, the Organization had HEERF student aid drawdowns totaling $30,000 that were not disbursed to students until March 2023 and April 2023; therefore, amounts were not disbursed to students within 15 calendar days of the drawdown. Cause There was a delay from the Organization?s program team in providing the finance department with the proper documentation to disburse the payments to the students. Effect or Potential Effect The Organization is not in compliance with the cash management compliance requirements of the funding agency, which may potentially impact grant funding. Questioned Costs None Recommendation The Organization should evaluate its HEERF student aid process and increase resources as necessary to aid in compliance and implement processes and internal controls to facilitate timely disbursement of student aid funds in accordance with federal requirements. Views of Responsible Officials Internal controls have been strengthened to facilitate timely disbursement of student aid funds.