Finding Text
Federal Agency: U.S. Department of Education Assistance Listing Number and Title: Student Financial Aid (SFA) Cluster Award Number: Various Area: Cash Management Questioned Cost: $55,915 Criteria: 34 CFR 668.162(d) states that under the heightened cash monitoring payment method, an institution must credit a student's ledger account for the amount of Title IV HEA program funds that the student or parent is eligible to receive, and pay the amount of any credit balance due under ? 668.164(h), before the institution submits a request for funds under the provisions of the advance payment method described in paragraphs (b)(1) and (2) of 34 CFR 668.162, except that the institution's request may not exceed the amount of the disbursements the institution has made to the students included in that request. Condition: Of the 75 samples tested, we noted 29 samples (or 39%) where the University did not credit the student?s ledger account before submitting a request for funds. Further, we noted 3 (or 4%) samples where the University made the disbursement beyond 3 days following the receipt of funds. Cause: The University lacks effective controls to ensure compliance with cash management requirements. Effect: The University is noncompliant with cash management requirements. Known questioned costs exist amounting to $55,915. Identification as a repeat finding: 2021-005 Recommendation: The University?s management should review the requirements of the Uniform Guidance and coordinate with its third-party private financial aid consultant in developing and implementing effective controls over compliance with cash management requirements. Views of responsible officials: Management agrees. Refer to Corrective Action Plan.