Finding 624803 (2022-006)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-03-27

AI Summary

  • Core Issue: The College failed to disburse 15 out of 17 student grants and 3 out of 4 institutional expenses within required timeframes after drawing down funds from the G5 system.
  • Impacted Requirements: Funds from the Student Aid Portion must be disbursed within 15 days, and Institutional Aid Portion funds within 3 days of drawdown.
  • Recommended Follow-Up: The College should review and improve its policies and internal controls to ensure compliance with federal grant disbursement timelines.

Finding Text

2022 ? 006 ? Higher Education Emergency Relief Fund (HEERF) ? Cash Management Federal Agency: U.S. Department of Education Federal Program Title: Higher Education Emergency Relief Fund ALN: 84.425E, 84.425F, 84.425M Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: The Certification and Agreements and/or Supplemental Agreements for CRRSAA HEERF II and ARP HEERF III require that Student Aid Portion (ALN 84.425E) should be disbursed within 15 calendar days of the drawdown from the Department of Education?s G5 grants system and Institutional Aid Portion, (a)(2), and (a)(3) funds (all other ALNs) should be disbursed within three calendar days of the drawdown from G5. Condition: During our testing, we noted 15 student grant payments out of 17 tested which were disbursed outside of the 15-calendar day window. In addition, three institutional expenses out of four tested were disbursed outside of the three-calendar day window. Questioned costs: None Context: The College drew down funds from the Department of Education?s G5 grants system and did not disburse the funds within the necessary timeframe. Cause: The College did not have an internal control structure in place that included reconciling the timing of its expenditures and its G5 drawdowns. Effect: The College is out of compliance with this requirement. Repeat finding: No Recommendation: We recommend that the College review their policies surrounding federal grants and ensure a review process is in place to ensure that all necessary compliance requirements are met. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Cash Management Significant Deficiency

Other Findings in this Audit

  • 48351 2022-003
    Significant Deficiency
  • 48352 2022-003
    Significant Deficiency
  • 48353 2022-003
    Significant Deficiency
  • 48354 2022-003
    Significant Deficiency
  • 48355 2022-003
    Significant Deficiency
  • 48356 2022-003
    Significant Deficiency
  • 48357 2022-004
    Significant Deficiency Repeat
  • 48358 2022-006
    Significant Deficiency
  • 48359 2022-004
    Significant Deficiency Repeat
  • 48360 2022-005
    Significant Deficiency Repeat
  • 48361 2022-006
    Significant Deficiency
  • 48362 2022-005
    Significant Deficiency Repeat
  • 48363 2022-006
    Significant Deficiency
  • 624793 2022-003
    Significant Deficiency
  • 624794 2022-003
    Significant Deficiency
  • 624795 2022-003
    Significant Deficiency
  • 624796 2022-003
    Significant Deficiency
  • 624797 2022-003
    Significant Deficiency
  • 624798 2022-003
    Significant Deficiency
  • 624799 2022-004
    Significant Deficiency Repeat
  • 624800 2022-006
    Significant Deficiency
  • 624801 2022-004
    Significant Deficiency Repeat
  • 624802 2022-005
    Significant Deficiency Repeat
  • 624804 2022-005
    Significant Deficiency Repeat
  • 624805 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $740,123
84.063 Federal Pell Grant Program $368,155
84.425E Heerf Student Aid Portion $302,012
84.425F Heerf Institutional Portion $296,151
84.038 Federal Perkins Loans - Beginning Balance $249,387
84.033 Federal Work-Study Program $78,509
84.007 Federal Supplemental Educational Opportunity Grants $57,368
84.425M Heerf Strengthening Institutions Program $40,623
84.038 Federal Perkins Loans - Loans Issued in 2022 $0