ED OIG Calls for Guidance on ARRA Cash Drawdown

Washington, Oct. 29 — Because many state and local educational agencies are struggling to properly manage cash drawdowns under the stimulus, Department of Education (ED) officials likely will issue guidance to help them comply with federal requirements. ED's internal watchdog recently issued an "alert memorandum" calling for the agency to quickly address this concern.

An audit by ED's Office of Inspector General (OIG) found that several state educational agencies (SEAs) disbursed American Recovery and Reinvestment Act (ARRA) funds without knowing if local educational agencies (LEAs) were ready to spend the funds, and did not ensure LEAs remitted interest earned on Recovery Act funds to the federal government.