Audit 20936

FINDING 2022-002: UNDERAWARDED PELL GRANT FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN: 84.063 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Eligibility (E.) Criteria: The amount of a student?s Federal Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR 690.62). Condition: We tested seventy-one files, fifty-nine of which were Pell Grant recipients, and one student did not receive the full amount of her allowed amount. The student was eligible for $2,165, but received $1,448. We consider this finding to be instances of non-compliance. This is a repeat finding of prior year Finding 2021-001. Cause: The condition was caused by using the incorrect expected family contribution (EFC) to calculate Pell Grant. Effect: The results is the student did not receive $717 of eligible Pell monies. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for chart/table Recommendation: As $717 has since been credited to the student's account, we recommend the Institution increase controls over Pell grants. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2022-003: UNDERAWARDED FEDERAL DIRECT SUBSIDIZED LOAN FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN: 84.268 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Eligibility (E.) Criteria: A second year student can receive up to $4,500 in subsidized loans in one academic year (34 CFR 685.203). Condition: We tested seventy-one files, fifty-nine of which were Federal Direct Loan recipients, and one students did not receive the full amount of her Federal Direct Subsidized Loan. We consider these finding to be an instance of non-compliance. This is a repeat finding of prior year Finding 2021-002. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result is student received unsubsidized loans prior to receiving full subsidized loans. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for chart/table Recommendation: We recommend the Institution reclassify $563 from unsubsidized to subsidized, and increase controls over packaging direct loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2022-004: UNTIMELY PAID CREDIT BALANCES WHILE ON HIGHTENED CASH MONITORING 1 PAYMENT METHOD FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Special Tests and Provisions (N.) Criteria: Under the heightened cash monitoring payment method, an institution must credit a student's ledger account for the amount of Title IV, HEA program funds that the student or parent is eligible to receive, and pay the amount of any credit balance due before the institution submits a request for funds (34 CFR 668.22). Condition: We tested seventy-one files and credit balances were not paid in a timely manner for one student. We consider this finding to be a significant deficiency. Cause: The condition was caused by not paying credit balances prior to requesting funds. Effect: As a result, the Institution was holding funds that needed to be returned to the students and violated the special conditions of provisional certification of its Program Participation Agreement (PPA). Question Costs: $689 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for chart/table Recommendation: We recommend the Institution increase controls over the payment of credit balances. We are issuing a significant deficiency for this attribute as the conditions of Heightened Cash Payment Monitoring 1 have not been adhered to for the audit period. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2022-002: UNDERAWARDED PELL GRANT FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN: 84.063 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Eligibility (E.) Criteria: The amount of a student?s Federal Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR 690.62). Condition: We tested seventy-one files, fifty-nine of which were Pell Grant recipients, and one student did not receive the full amount of her allowed amount. The student was eligible for $2,165, but received $1,448. We consider this finding to be instances of non-compliance. This is a repeat finding of prior year Finding 2021-001. Cause: The condition was caused by using the incorrect expected family contribution (EFC) to calculate Pell Grant. Effect: The results is the student did not receive $717 of eligible Pell monies. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for chart/table Recommendation: As $717 has since been credited to the student's account, we recommend the Institution increase controls over Pell grants. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2022-003: UNDERAWARDED FEDERAL DIRECT SUBSIDIZED LOAN FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN: 84.268 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Eligibility (E.) Criteria: A second year student can receive up to $4,500 in subsidized loans in one academic year (34 CFR 685.203). Condition: We tested seventy-one files, fifty-nine of which were Federal Direct Loan recipients, and one students did not receive the full amount of her Federal Direct Subsidized Loan. We consider these finding to be an instance of non-compliance. This is a repeat finding of prior year Finding 2021-002. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result is student received unsubsidized loans prior to receiving full subsidized loans. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for chart/table Recommendation: We recommend the Institution reclassify $563 from unsubsidized to subsidized, and increase controls over packaging direct loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2022-004: UNTIMELY PAID CREDIT BALANCES WHILE ON HIGHTENED CASH MONITORING 1 PAYMENT METHOD FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Special Tests and Provisions (N.) Criteria: Under the heightened cash monitoring payment method, an institution must credit a student's ledger account for the amount of Title IV, HEA program funds that the student or parent is eligible to receive, and pay the amount of any credit balance due before the institution submits a request for funds (34 CFR 668.22). Condition: We tested seventy-one files and credit balances were not paid in a timely manner for one student. We consider this finding to be a significant deficiency. Cause: The condition was caused by not paying credit balances prior to requesting funds. Effect: As a result, the Institution was holding funds that needed to be returned to the students and violated the special conditions of provisional certification of its Program Participation Agreement (PPA). Question Costs: $689 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for chart/table Recommendation: We recommend the Institution increase controls over the payment of credit balances. We are issuing a significant deficiency for this attribute as the conditions of Heightened Cash Payment Monitoring 1 have not been adhered to for the audit period. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.