Finding Text
2022-001: Cash Management Identification of the federal program: U.S. Department of Education ALN 84.425 COVID-19 Education Stabilization Fund Criteria or specific requirement: Department of Education requirements for COVID-19 Education Stabilization Fund (ESF) Programs for the cash management requirement, as summarized in the 2022 OMB Compliance Supplement stipulates that the institutional aid portion of ESF Funds (ALN 84.425F) should be disbursed within 3 calendar days of the drawdown from the G5 system. For lost revenue recovery, the "obligation" occurs on the date the institution completes its estimate of is amount of lost revenue after the estimation period. Condition: The University did not complete its final estimate of lost revenue within the required three calendar days after receiving the funds. Cause: The University had various options in order to utilize its institutional funds under HEERF III but ultimately decided on the path to use 2022 lost revenues but the draws from the G5 system predated this final decision. Effect or potential effect: The ultimate decision to use 2022 lost revenues came at the consequence of not being in full compliance with the timing rules for drawing funds. Questioned costs: None Context: The University did not complete its final estimate of lost revenue within the required three calendar days after receiving the funds, as required by the granting agency. This was a one-time event, as the University received one disbursement during FY 2022. No questioned costs were identified, as the finding relates to timing, as opposed to improper use of funds. Repeat finding: No Recommendation: We recommend management implement a process related to new government funding to understand all the various applicable compliance requirements in order to ensure grant requirements are properly met in a linear fashion and avoid situations where changes in how to meet one requirement does not inadvertently cause issues in other administrative requirements. Views of responsible officials: The University agrees with the finding. Refer to the University?s corrective action plan.