Finding 606278 (2022-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-01-03
Audit: 32261
Organization: Fisk University (TN)
Auditor: Crosslin PLLC

AI Summary

  • Core Issue: The University failed to disburse certain funds within the required 15 and 3 calendar days after drawdown from the G5 system.
  • Impacted Requirements: Compliance with cash management rules for HEERF II and III funding was not met, affecting timely fund distribution.
  • Recommended Follow-Up: Ensure future drawdowns align with allowable expenditures to meet the specified disbursement timelines.

Finding Text

# 2022-001 CASH MANAGEMENT Higher Education Emergency Relief Funding Assistance Listing No. 84.425E and 84.425F U.S. Department of Education Criteria For CRRSAA HEERF II and ARP HEERF III, the Certification and Agreements and/or Supplemental Agreements requires that Student Aid Portion (ALN 84.425E) should be disbursed within 15 calendar days of the drawdown from ED?s G5 grants system and Institutional Aid Portion, (a)(2), and (a)(3) funds (all other ALNs) should be disbursed within 3 calendar days of the drawdown from G5. For lost revenue, the ?obligation? occurs on the date the institution completes its estimate of its amount of lost revenue after the estimation period. Condition and Context The University did not disbursement certain Student Aid Portion within the 15-calendar day threshold and (a)(2) drawdown funding within the 3-calendar day threshold. Questioned Cost None Cause The University made drawdowns of funding without having allowable expenditures designated to match the drawdown within the required timeframe. Effect The University was not in compliance with the cash management requirement of the HEERF agreements.Recommendation We recommend the University to consistently adhere to the disbursement timing requirements of the grant. We recommend the University to drawdown HEERF funding when the University has allowable expenditures that have occurred or are going to occur within the 3 or 15-day calendar threshold. Views of Responsible Officials and Planned Corrective Action The University concurs with the finding and will adhere to the disbursement timing requirements of the HEERF II and HEERF III awards in accordance with the Certification and Agreements and/or Supplemental Agreements. To ensure compliance with the 3-day or 15-day calendar threshold, funds will be drawn down at the time of, or after the occurrence of the allowable expenditures

Categories

Cash Management

Other Findings in this Audit

  • 29836 2022-001
    Significant Deficiency
  • 29837 2022-002
    - Repeat
  • 606279 2022-002
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.25M
84.031 Higher Education_institutional Aid $2.56M
84.063 Federal Pell Grant Program $2.52M
84.038 Federal Perkins Loans $1.40M
84.425 Education Stabilization Fund $686,915
84.382 Strengthening Minority-Serving Institutions $425,994
84.042 Trio_student Support Services $403,257
84.007 Federal Supplemental Educational Opportunity Grants $337,476
93.859 Biomedical Research and Research Training $294,458
84.033 Federal Work-Study Program $163,951
12.300 Basic and Applied Scientific Research $72,406
43.008 Education $50,000
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $39,293
12.630 Basic, Applied, and Advanced Research in Science and Engineering $19,453
93.310 Trans-Nih Research Support $15,742
43.001 Science $7,107
47.076 Education and Human Resources $2,000
93.142 Niehs Hazardous Waste Worker Health and Safety Training $1,526