Finding 608649 (2022-002)

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Requirement
C
Questioned Costs
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Year
2022
Accepted
2023-02-20
Audit: 27151
Organization: University of Saint Katherine (CA)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The University delayed disbursing funds from the Education Stabilization Fund, drawing down in July 2021 but not distributing to students until November and December.
  • Impacted Requirements: Federal guidelines require disbursement of Student Aid within 15 days and Institutional Aid within 3 days of drawdown.
  • Recommended Follow-up: Implement a reimbursement method for cash management to ensure compliance with federal disbursement timelines.

Finding Text

Cash Management of Education Stabilization Fund DEPARTMENT OF EDUCATION ALN #: 84.425E, 84.425F, and 84.425L Federal Award Identification #: P425E205020, P425F204249, P425L200637 Condition: The University drew down funding in July 2021 and did not disburse funds to students until November and December 2021. Additionally, the University drew down institutional funding in July and August 2021 while the expenses charged were incurred during the period of July 2021 through December 2021. 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. Questioned Costs: $-0- Context: The University drew down funding as it was available and when a plan had been established to use the funding. Cause: The University was not aware of the 3 day and 15 day requirements. Effect: The University could have earned interest on funds that had not yet been used for federal purposes. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University adopt the reimbursement method of cash management for all federal funding. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.91M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $552,431
84.063 Federal Pell Grant Program $444,629
84.425 Covid-19 Education Stabilization Fund Heerf- Student Aid Portion $387,533
84.425 Covid-19 Education Stabilization Fund Heerf - Minority Serving Institutions $38,058
84.007 Federal Supplemental Educational Opportunity Grants $19,333
84.033 Federal Work-Study Program $16,218