Finding 628887 (2022-007)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-01-11
Audit: 52798
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The College failed to disburse funds from HEERF within required timeframes, violating cash management rules.
  • Impacted Requirements: Student Aid Portion must be disbursed within 15 days; Institutional Aid Portion within 3 days of drawdown.
  • Recommended Follow-up: Establish a process to ensure timely disbursement of funds to meet compliance requirements.

Finding Text

2022-007 Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.425 Federal Award Number: P425E202575; P425F202249; P425L200619; P425N200061 Program Name: Education Stabilization Fund - HEERF Cash Management under Higher Education Emergency Relief Funds (HEERF) Material Weakness in Internal Control over Compliance Criteria ? In addition to basic cash management principles, for CRRSAA and ARP HEERF, the Certification and Agreements requires that Student Aid Portion be disbursed within 15 calendar days of the drawdown from DOE?s G5 grants system, and the Institutional Aid Portion within 3 calendar days. Condition ? During our testing of cash management, we noted instances where the Student Aid Portion was not disbursed within 15 calendar days of the drawdown and instances where the Institutional Portion was not disbursed within 3 calendar days of the drawdown. Specifically, the following was noted during our testing: ? The College drew 100% of the student aid portion from HEERF II on January 26, 2021, but they did not have the funds fully disbursed until fiscal year 2022. ? The College drew 100% of the student aid portion from HEERF III on January 21, 2022, and returned all but $10,000 on February 15, 2022, at the direction of the DOE. The College did disburse funds of $10,000 to students between January 21, 2022, and February 15, 2022, but outside the 15-day window of compliance. The DOE is already aware of this finding. ? The College drew 100% of the institutional portion from HEERF III on January 21, 2022, and returned all but $151,805 on February 15, 2022, at the direction of the DOE. The College did incur eligible costs of $151,805 between January 21, 2022, and February 15, 2022, but not within the 3-day window of compliance. The DOE is already aware of this finding. ? The College redrew $556,763 of institutional portion from HEERF III on June 8, 2022, but it appears they only disbursed $508,371 within the 3-day window of compliance. ? The College drew 100% of institutional MSI HEERF II on March 18, 2021, but they did not have the funds fully disbursed until fiscal year 2022 when it was used against lost revenue for quarters 1, 2 and 3. ? The College drew $87,528 of institutional MSI HEERF III on January 21, 2022, but it appears they only disbursed $63,255 within the 3-day window of compliance. Cause ? Because of confusion over the rules and conditions on timing over drawdowns and disbursements, the College drew funds and did not make the disbursements timely. However, as of June 30, 2022, all drawdowns have been disbursed. Effect - The College was out of compliance with the cash management requirements of HEERF. Questioned Costs ? None reported Context/Sampling ? All prior year draws disbursed in the current year and all draws made in the current year were reviewed for compliance. Repeat Finding - No Recommendation - The College should implement a process to ensure that funds are disbursed within the required timeframe. View of Responsible Officials - Management agrees with this finding and will implement the recommendations.

Categories

Cash Management Material Weakness

Other Findings in this Audit

  • 42657 2022-007
    Material Weakness
  • 52432 2022-003
    Material Weakness Repeat
  • 52433 2022-004
    Material Weakness Repeat
  • 52434 2022-003
    Material Weakness Repeat
  • 52435 2022-004
    Material Weakness Repeat
  • 52436 2022-003
    Material Weakness Repeat
  • 52437 2022-004
    Material Weakness Repeat
  • 52438 2022-003
    Material Weakness Repeat
  • 52439 2022-004
    Material Weakness Repeat
  • 52440 2022-005
    Significant Deficiency Repeat
  • 52441 2022-006
    Significant Deficiency
  • 52442 2022-007
    Material Weakness
  • 52443 2022-005
    Significant Deficiency Repeat
  • 52444 2022-006
    Significant Deficiency
  • 52445 2022-007
    Material Weakness
  • 52446 2022-005
    Significant Deficiency Repeat
  • 52447 2022-006
    Significant Deficiency
  • 52448 2022-007
    Material Weakness
  • 52449 2022-005
    Significant Deficiency Repeat
  • 52450 2022-006
    Significant Deficiency
  • 619099 2022-007
    Material Weakness
  • 628874 2022-003
    Material Weakness Repeat
  • 628875 2022-004
    Material Weakness Repeat
  • 628876 2022-003
    Material Weakness Repeat
  • 628877 2022-004
    Material Weakness Repeat
  • 628878 2022-003
    Material Weakness Repeat
  • 628879 2022-004
    Material Weakness Repeat
  • 628880 2022-003
    Material Weakness Repeat
  • 628881 2022-004
    Material Weakness Repeat
  • 628882 2022-005
    Significant Deficiency Repeat
  • 628883 2022-006
    Significant Deficiency
  • 628884 2022-007
    Material Weakness
  • 628885 2022-005
    Significant Deficiency Repeat
  • 628886 2022-006
    Significant Deficiency
  • 628888 2022-005
    Significant Deficiency Repeat
  • 628889 2022-006
    Significant Deficiency
  • 628890 2022-007
    Material Weakness
  • 628891 2022-005
    Significant Deficiency Repeat
  • 628892 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $755,318
93.575 Child Care and Development Block Grant $469,489
84.268 Federal Direct Student Loans $423,894
17.259 Wia Youth Activities $177,822
84.002 Adult Education - Basic Grants to States $156,723
10.855 Distance Learning and Telemedicine Loans and Grants $125,397
17.258 Wia Adult Program $114,475
17.277 Workforce Investment Act (wia) National Emergency Grants $104,573
84.031 Higher Education_institutional Aid $75,998
84.425 Education Stabilization Fund $54,782
84.007 Federal Supplemental Educational Opportunity Grants $53,600
59.037 Small Business Development Centers $47,404
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $34,341
47.076 Education and Human Resources $31,440
21.027 Coronavirus State and Local Fiscal Recovery Funds $30,420
84.033 Federal Work-Study Program $12,549
17.278 Wia Dislocated Worker Formula Grants $11,684