Finding Text
2022-003 Cash Management Disbursement (G5 Drawdown) Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster ALN Numbers: Various Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ?Significant Deficiency in Internal Control Over Compliance ?Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.166 requires institutions to disburse FSA funds as soon as administratively feasible but no later than three business days following the date the institution received those funds. Condition: The University drew excess financial funds during the Fall 2021 and did not return the excess cash within the three-day requirement. Questioned Costs: $351,837 Context: During our testing, we noted the University overdrew financial aid funds from the Department of Education in the amount of $351,837 which was not returned within three days to the Department of Education. The Department of Education had contacted the University on multiple occasion until the funds were returned in December 2021. Cause: The University did not have administrative capability to be able to account for all federal student financial aid dollars expended. Effect: The University is not complying with federal requirements regarding excess cash. This resulted in questioned costs that include return of funds on excess funds drawn down. Repeat Finding: No Recommendation: The University should implement a procedure to ensure federal aid drawn down are accounted for timely and returned within 3 days. Views of Responsible Officials: There is no disagreement with the audit finding.