FAC Explorer

Finding 966867 (2023-008)

Significant Deficiency Repeat Finding
Requirement
C
Questioned Costs
$1
Year
2023
Accepted
2024-03-30
Audit: 301226
Organization: Delaware State University (DE)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The University did not spend all advanced federal funds by June 30, 2023, leading to delays in disbursement.
  • Impacted Requirements: Non-compliance with 2 CFR 200.305(b)(1) regarding timely fund disbursement and failure to remit over $500 in interest earned on unspent funds.
  • Recommended Follow-Up: The University should establish and enforce procedures to minimize fund transfer delays and ensure timely remittance of earned interest.

Finding Text

2023-008 – Cash Management Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund – Higher Education Emergency Relief Fund – Student Aid Portion and Institutional Portion Federal Assistance Listing Numbers: 84.425E and 84.425F Federal Award Identification Number and Year: P425F203028 and P425E201388 – all grants were awarded within 2021-2022 and 2022-2023 Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Other Matters and Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: The Code of Federal Regulations, 2 CFR 200.305(b)(1), the non- Federal entity must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet the standards for fund control and accountability as established in this part. Advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions. 200.305(b)(9) Interest earned amounts up to $500 per year may be retained by the non-Federal entity for administrative expense. Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to the government. A non-federal entity must maintain effective internal control over the federal award (2 CFR 200.303). Condition: The University did not expend all funds drawn down in advance by June 30, 2023, and therefore, they did not minimize the amount of time between the transfer of funds and disbursement. Additionally, more than $500 of interest was earned on the unspent funds and it was not remitted to the federal government as of year-end. Questioned Costs: $75,070 of interest earned as of June 30, 2023 Context: Federal funds were drawn down in advance of expenditure and there were no policies to minimize the time elapsing between the transfer of funds and disbursement by the University. Additionally, the University earned interest greater than $500 which was not remitted as of report date. Cause: University does not have a documented procedure or control that minimizes the time elapsing between the transfer of funds and disbursement or returning earned interest. Effect: Failure to document and adhere to procedures to minimize the time elapsing between transfer and disbursement of funds and the University incurred interest that has not been remitted back to the treasury. Repeat Finding: Yes, 2022-011 Recommendation: We recommend the University formally design and implement controls and monitor advances in federal funds to ensure time elapsing between the transfer of funds and disbursement is minimized and any interest required to be remitted is calculated and returned on a timely basis. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.

Categories

Questioned Costs Cash Management

Other Findings in this Audit

  • 390415 2023-006
    Significant Deficiency Repeat
  • 390416 2023-009
    Material Weakness
  • 390417 2023-009
    Material Weakness
  • 390418 2023-006
    Significant Deficiency Repeat
  • 390419 2023-009
    Material Weakness
  • 390420 2023-005
    Material Weakness Repeat
  • 390421 2023-006
    Significant Deficiency Repeat
  • 390422 2023-009
    Material Weakness
  • 390423 2023-005
    Material Weakness Repeat
  • 390424 2023-007
    Significant Deficiency Repeat
  • 390425 2023-008
    Significant Deficiency Repeat
  • 390426 2023-007
    Significant Deficiency Repeat
  • 390427 2023-008
    Significant Deficiency Repeat
  • 390428 2023-004
    Material Weakness
  • 966857 2023-006
    Significant Deficiency Repeat
  • 966858 2023-009
    Material Weakness
  • 966859 2023-009
    Material Weakness
  • 966860 2023-006
    Significant Deficiency Repeat
  • 966861 2023-009
    Material Weakness
  • 966862 2023-005
    Material Weakness Repeat
  • 966863 2023-006
    Significant Deficiency Repeat
  • 966864 2023-009
    Material Weakness
  • 966865 2023-005
    Material Weakness Repeat
  • 966866 2023-007
    Significant Deficiency Repeat
  • 966868 2023-007
    Significant Deficiency Repeat
  • 966869 2023-008
    Significant Deficiency Repeat
  • 966870 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $38.67M
84.063 Federal Pell Grant Program $11.57M
84.425 Education Stabilization Fund $10.78M
84.031 Higher Education_institutional Aid $5.98M
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.65M
12.630 Basic, Applied, and Advanced Research in Science and Engineering $2.19M
47.083 Integrative Activities $1.66M
93.788 Opioid Str $1.26M
10.205 Payments to 1890 Land-Grant Colleges and Tuskegee University $1.05M
93.307 Minority Health and Health Disparities Research $1.04M
10.512 Agriculture Extension at 1890 Land-Grant Institutions $813,426
10.310 Agriculture and Food Research Initiative (afri) $587,808
12.330 Science, Technology, Engineering & Mathematics (stem) Education, Outreach and Workforce Program $476,077
15.904 Historic Preservation Fund Grants-in-Aid $408,435
93.732 Mental and Behavioral Health Education and Training Grants $387,018
47.074 Biological Sciences $358,868
47.049 Mathematical and Physical Sciences $329,036
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $319,102
10.524 Scholarships for Students at 1890 Institutions (b) $315,852
17.268 H-1b Job Training Grants $277,747
84.007 Federal Supplemental Educational Opportunity Grants $238,600
47.075 Social, Behavioral, and Economic Sciences $237,061
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $226,182
11.481 Educational Partnership Program $213,181
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Program $211,519
84.033 Federal Work-Study Program $203,606
43.009 Cross Agency Support $199,451
12.800 Air Force Defense Research Sciences Program $142,189
59.077 Community Navigator Pilot Program $131,328
11.307 Economic Adjustment Assistance $128,785
47.050 Geosciences $125,568
10.202 Cooperative Forestry Research $104,945
47.041 Engineering $94,047
12.431 Basic Scientific Research $92,832
11.419 Coastal Zone Management Administration Awards $87,876
93.866 Aging Research $85,288
11.417 Sea Grant Support $75,302
93.310 Trans-Nih Research Support $73,383
47.070 Computer and Information Science and Engineering $65,604
10.514 Expanded Food and Nutrition Education Program $63,668
10.523 Centers of Excellence at 1890 Institutions (b) $60,094
10.001 Agricultural Research_basic and Applied Research $51,944
12.300 Basic and Applied Scientific Research $50,893
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $47,659
10.311 Beginning Farmer and Rancher Development Program $43,848
20.205 Highway Planning and Construction $40,614
84.016 Undergraduate International Studies and Foreign Language Programs $40,107
93.859 Biomedical Research and Research Training $38,347
10.558 Child and Adult Care Food Program $34,907
19.040 Public Diplomacy Programs $26,149
10.217 Higher Education - Institution Challenge Grants Program $23,783
84.116 Fund for the Improvement of Postsecondary Education $23,315
93.351 Research Infrastructure Programs $23,167
11.619 Arrangements for Interdisciplinary Research Infrastructure $21,212
10.229 Extension Collaborative on Immunization Teaching & Engagement $19,393
93.268 Immunization Cooperative Agreements $18,857
10.025 Plant and Animal Disease, Pest Control, and Animal Care $18,056
45.309 Museum Grants for African American History and Culture $17,692
98.001 Usaid Foreign Assistance for Programs Overseas $12,776
93.110 Maternal and Child Health Federal Consolidated Programs $11,500
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $11,424
10.170 Specialty Crop Block Grant Program - Farm Bill $10,690
10.216 1890 Institution Capacity Building Grants $10,064
11.472 Unallied Science Program $8,536
15.670 Adaptive Science $4,881
10.329 Crop Protection and Pest Management Competitive Grants Program $4,011
43.008 Education $3,736
47.079 Office of International Science and Engineering $2,887
10.777 Norman E. Borlaug International Agricultural Science and Technology Fellowship $2,345
15.423 Bureau of Ocean Energy Management (boem) Environmental Studies Program (esp) $1,895
10.226 Secondary and Two-Year Postsecondary Agriculture Education Challenge Grants $1,723
16.609 Project Safe Neighborhoods $1,401
10.500 Cooperative Extension Service $1,370
10.215 Sustainable Agriculture Research and Education $1,367
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $1,000
47.076 Education and Human Resources $583
10.902 Soil and Water Conservation $11
43.001 Science $-9,598