Finding Text
Finding 2022-003: Significant Deficiency in Cash Management Federal Program - COVID-19 Education Stabilization Fund (ESF) ? Institutional and Student Portion Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable AL Number - 84.425 Federal Award Identification Numbers - P425E205608, P425F205088 and P425N200710 Federal Award Year - June 30, 2022 Criteria: Recipients of federal awards are required to administer its federal programs with an adequate system of internal controls over applicable compliance requirements. Condition: The drawdowns were completed, but were not reviewed or approved by anyone other than the original preparer. Questioned Costs: Not applicable. Context: Neither of the two drawdowns that were tested were reviewed or approved by someone who was not the original preparer. However, none of the reconciliations contained errors. The sample was not considered statistically valid. Cause: The School did not ensure proper review and approval of drawdown requests in accordance with HEERF requirements. Effect: Drawdowns could contain errors or may not balance, resulting in errors in the drawdowns. Recommendation: After the drawdown requests are completed, they should be reviewed and approved by someone other than the original preparer who would be knowledgeable enough to identify an error in the reconciliation. Management's Response: The School is aware that the drawdowns were not reviewed or approved by anyone other than the original preparer. The School currently has an insufficient number of personnel which does not allow for the drawdowns to be reviewed and approved by someone with sufficient knowledge other than the original preparer. The School is in the process of hiring a President, and with that hire, the drawdowns can be reviewed and approved by someone knowledgeable enough to identify an error in the reconciliation.