FAC Explorer

Finding 7442 (2023-006)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-01-04
Audit: 9586
Organization: Los Angeles Chapter National Tooling & MacHining Association Training Centers Trust (CA)
Auditor: Vasquez & Company LLP

AI Summary

  • Core Issue: Cash drawdowns from the HEERF Institutional Portion were made before the end of the estimation period.
  • Impacted Requirements: Drawdowns should align with the designated estimation periods for lost revenue claims.
  • Recommended Follow-Up: Review and adjust cash management practices to ensure compliance with timing requirements for future drawdowns.

Finding Text

Cash Management: Drawdown of HEERF Institutional Portion Related to Lost Revenue Made Earlier Than the End of Estimation Period We noted that the Institution made three cash drawdowns from the HEERF Institutional Portion to claim lost revenue earlier than the end of the estimation period. - The first drawdown of $626,694 was made on May 3, 2022 related to lost revenue for the quarter ending March 31, 2022 and June 30, 2022. - The second drawdown of $333,925 was made on July 8, 2022 related to the lost revenue for the quarter ending September 30,2022. - The last drawdown of $128,764 was made on October 20,2022 related to the lost revenue for the quarter ending December 31, 2022.

Corrective Action Plan

The Institution will read for itself the policies associated with any new program roll out that requires funds to be allocated and will ensure to create and enact policies that speak to the efficacy of the program to ensure operations are within the guidelines and will conduct a thorough review of the estimation periods requirements and guidelines used in calculating lost revenue for the HEERF Institutional portion. Personnel Responsible for Implementation: Danielle Skinner Position of Responsible Personnel: President Expected Date of Implementation: Immediate

Categories

Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.39M
84.063 Federal Pell Grant Program $642,047
84.268 Federal Direct Student Loans $462,959