Finding 609347 (2022-001)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: Institutional Aid funds were not disbursed within the required 3 calendar days after drawdown.
  • Impacted Requirements: Compliance with Department of Education cash management rules for the HEERF program.
  • Recommended Follow-Up: Management should review and improve processes to ensure timely disbursement of funds.

Finding Text

Finding: 2022-001 Federal Program: HEERF Institutional Aid ? 84.425F ? Cash Management Federal Agency: U.S. Department of Education Criteria: 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. Condition: Institutional Aid funds drawn by the System were supported by expenditures incurred however, the System did not disburse the drawn funds within the required 3 calendar day period. Cause: The System was not aware that Institutional Aid funds drawn were required to be disbursed within 3 calendar days. Effect or Potential Effect: Funds were retained by the System beyond the allowed days prior to disbursement. Prevalence: A sample of 4 transactions within a population of 15 transactions were tested. The sample in its entirety was not disbursed timely. Questioned Costs: None. Recommendation: We recommend management review their process around grant requirements to ensure all requirements are met.

Categories

Cash Management

Other Findings in this Audit

  • 32905 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $6.53M
84.268 Federal Direct Student Loans $1.43M
84.425 Education Stabilization Fund $572,921
84.063 Federal Pell Grant Program $345,458
93.788 Opioid Str $183,717
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $150,042
93.991 Preventive Health and Health Services Block Grant $79,542
93.889 National Bioterrorism Hospital Preparedness Program $61,831
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $45,833