Finding Number:2022-004 Information on the Federal Program:Federal Agency: ED Program Name: Student Financial Assistance Cluster AL: 84.268 - Federal Direct Student Loans Federal Award Identification Number: N/A Federal Award Year: Year Ended June 30, 2022 Specific Requirement: Required by 34 CFR 668.165, an institution must notify the student, or parent, in writing of (1) the date and amount of disbursement; (2) the student?s right, or parent?s right, to cancel all or a portion of that loan; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. When funds are disbursed by electronic fund transfer and an institution does not implement an affirmative confirmation process, an institution must notify a student no earlier than 30 days before, but no later than 7 days after, crediting the student?s account of their right to cancel all or part of the loan within 30 days. Condition Found: During our audit, we noted the University did not send disbursement notification letters informing the student, or their parent, of their right to cancel all or a portion of their loan for approximately 200 Federal Direct Student Loans awarded during the Summer 2021 semester out of a total of approximately 2,500 direct loans disbursed during 2022 Context: Based on our sample, which was determined using a non-statistically based methodology, 1 of the 27 students tested who were disbursed Federal Direct Student Loans did not receive the disbursement notification letters informing the student, or their parent, of their right to cancel all or a portion of the their loan within the required timeframe. Based on our discussion with management, the disbursement notification letters were not sent for any Federal Direct Student Loan awarded during the Summer 2021 semester. Questioned Costs: None. Cause and Effect: Due to turnover in Student Financial Services Department, the disbursement notifications for the Summer 2021 semester were not sent to the students or their parents. As a result, students may not have been aware of their right to cancel their loan or the procedures and time by which the loan may be canceled. Identification as a Repeat Finding, if Applicable: A repeat of prior year finding 2021-001 Recommendation: We recommend the University implement a control procedure to ensure disbursement notification letters are sent to every student who received direct loan disbursement, within 7 days, to be in compliance with the requirement described above. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.
Finding Number: 2022-005 Information on the Federal Program: Federal Agency: ED Program Name: Student Financial Assistance Cluster AL: 84.063 - Federal Pell Grant Program 84.268 - Federal Direct Student Loans Federal Award Identification Number: N/A Federal Award Year: Year Ended June 30, 2022 Specific Requirement: Under the Pell Grant and Direct Loan programs, an institution must notify NSLDS within 30 days after the date that the institution discovers that a Direct loan was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended (PELL, 34 CFR section 690.83(b)(2), and Direct Loans, 34 CFR section 685.309). Conditions Found: Based on our sample, which was determined using a non-statistically based methodology, two of the 25 students tested were not reported to the NSDLS within the required timeframe. Context: The two students who were not reported timely informed the Student Financial Aid department during the Fall 2021 and Spring 2022 semesters that they would not be returning to the University for the Spring 2022 and Fall 2022 semester, respectively. It is our understanding the University?s process for all students who submit a withdrawal request to be effective for a specific date is to report them as withdrawn as of the specified effective date and not as of the last day of enrollment when the University is aware the student will not be returning. As a result of further inquiry and testing, we noted that there were a total of 52 students that withdrew during the months of November, April and May. Questioned Costs: None. Cause and Effect: Currently, the University has a process that when a student informs the University at the end of a semester they will be withdrawing from the University, the University will wait until the start of the next semester to confirm the student did not enroll in the upcoming semester. By doing so, the University would report students to the NSLDS outside of the 60-day requirement. The effect of the noted condition results in an inaccurate last date of attendance reported to NSLDS which is used to determine the date a student is to be placed into repayment status and begin making payments on student loans. Identification as a Repeat Finding, if Applicable: A repeat of prior year finding 2021-003 and 2020-001 Recommendation: We recommend the University review the system generated report to verify all students are included in addition to implementing a quality control review process to be completed monthly to ensure all student changes are reviewed in a timely manner to ensure compliance with the 60-day requirement. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.
Finding Number: 2022-005 Information on the Federal Program: Federal Agency: ED Program Name: Student Financial Assistance Cluster AL: 84.063 - Federal Pell Grant Program 84.268 - Federal Direct Student Loans Federal Award Identification Number: N/A Federal Award Year: Year Ended June 30, 2022 Specific Requirement: Under the Pell Grant and Direct Loan programs, an institution must notify NSLDS within 30 days after the date that the institution discovers that a Direct loan was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended (PELL, 34 CFR section 690.83(b)(2), and Direct Loans, 34 CFR section 685.309). Conditions Found: Based on our sample, which was determined using a non-statistically based methodology, two of the 25 students tested were not reported to the NSDLS within the required timeframe. Context: The two students who were not reported timely informed the Student Financial Aid department during the Fall 2021 and Spring 2022 semesters that they would not be returning to the University for the Spring 2022 and Fall 2022 semester, respectively. It is our understanding the University?s process for all students who submit a withdrawal request to be effective for a specific date is to report them as withdrawn as of the specified effective date and not as of the last day of enrollment when the University is aware the student will not be returning. As a result of further inquiry and testing, we noted that there were a total of 52 students that withdrew during the months of November, April and May. Questioned Costs: None. Cause and Effect: Currently, the University has a process that when a student informs the University at the end of a semester they will be withdrawing from the University, the University will wait until the start of the next semester to confirm the student did not enroll in the upcoming semester. By doing so, the University would report students to the NSLDS outside of the 60-day requirement. The effect of the noted condition results in an inaccurate last date of attendance reported to NSLDS which is used to determine the date a student is to be placed into repayment status and begin making payments on student loans. Identification as a Repeat Finding, if Applicable: A repeat of prior year finding 2021-003 and 2020-001 Recommendation: We recommend the University review the system generated report to verify all students are included in addition to implementing a quality control review process to be completed monthly to ensure all student changes are reviewed in a timely manner to ensure compliance with the 60-day requirement. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.
Finding Number:2022-003 Information on the Federal Program: Federal Agency: United States Department of Education (ED) Program Name: COVID-19 ? Education Stabilization Funds (Part B) AL: 84.425 Federal Award Identification Number: N/A Federal Award Year: Year Ended June 30, 2022 Specific Requirement: Required by 2 CFR, Part 200 for federally funded programs, when an institution enters into a covered transaction with an entity or individual, the institution must verify that the vendor is not suspended or debarred or otherwise excluded from participating in federal programs. Generally, a covered transaction is a transaction expected to equal or exceed $25,000 and be funded with federal dollars. This verification may be accomplished by checking the System for Award Management (SAM), or by adding a clause or condition to the covered transaction. Condition Found: During our audit, we noted that management did not review the SAM for vendors and employees meeting the covered transaction threshold as is defined in their year-end close checklist. Context: We noted there were 3 vendors exceeding $25,000 funded by the program. Based on our testing, none of the vendors exceeding the $25,000 limit were included in the SAM and received payments funded by the University?s major programs. Questioned Costs: None. Cause and Effect: The University was aware of the requirement to verify vendors and employees and they have a process established as part of their year-end close, but the review was not completed. Since this process was not performed, there is a greater risk of vendors and employees that are included on the SAM being disbursed funds through federal funds Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the University follow established procedures for comparing vendors and employees against the SAM and maintain documentation that the comparison has been performed. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.
Finding Number:2022-004 Information on the Federal Program:Federal Agency: ED Program Name: Student Financial Assistance Cluster AL: 84.268 - Federal Direct Student Loans Federal Award Identification Number: N/A Federal Award Year: Year Ended June 30, 2022 Specific Requirement: Required by 34 CFR 668.165, an institution must notify the student, or parent, in writing of (1) the date and amount of disbursement; (2) the student?s right, or parent?s right, to cancel all or a portion of that loan; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. When funds are disbursed by electronic fund transfer and an institution does not implement an affirmative confirmation process, an institution must notify a student no earlier than 30 days before, but no later than 7 days after, crediting the student?s account of their right to cancel all or part of the loan within 30 days. Condition Found: During our audit, we noted the University did not send disbursement notification letters informing the student, or their parent, of their right to cancel all or a portion of their loan for approximately 200 Federal Direct Student Loans awarded during the Summer 2021 semester out of a total of approximately 2,500 direct loans disbursed during 2022 Context: Based on our sample, which was determined using a non-statistically based methodology, 1 of the 27 students tested who were disbursed Federal Direct Student Loans did not receive the disbursement notification letters informing the student, or their parent, of their right to cancel all or a portion of the their loan within the required timeframe. Based on our discussion with management, the disbursement notification letters were not sent for any Federal Direct Student Loan awarded during the Summer 2021 semester. Questioned Costs: None. Cause and Effect: Due to turnover in Student Financial Services Department, the disbursement notifications for the Summer 2021 semester were not sent to the students or their parents. As a result, students may not have been aware of their right to cancel their loan or the procedures and time by which the loan may be canceled. Identification as a Repeat Finding, if Applicable: A repeat of prior year finding 2021-001 Recommendation: We recommend the University implement a control procedure to ensure disbursement notification letters are sent to every student who received direct loan disbursement, within 7 days, to be in compliance with the requirement described above. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.
Finding Number: 2022-005 Information on the Federal Program: Federal Agency: ED Program Name: Student Financial Assistance Cluster AL: 84.063 - Federal Pell Grant Program 84.268 - Federal Direct Student Loans Federal Award Identification Number: N/A Federal Award Year: Year Ended June 30, 2022 Specific Requirement: Under the Pell Grant and Direct Loan programs, an institution must notify NSLDS within 30 days after the date that the institution discovers that a Direct loan was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended (PELL, 34 CFR section 690.83(b)(2), and Direct Loans, 34 CFR section 685.309). Conditions Found: Based on our sample, which was determined using a non-statistically based methodology, two of the 25 students tested were not reported to the NSDLS within the required timeframe. Context: The two students who were not reported timely informed the Student Financial Aid department during the Fall 2021 and Spring 2022 semesters that they would not be returning to the University for the Spring 2022 and Fall 2022 semester, respectively. It is our understanding the University?s process for all students who submit a withdrawal request to be effective for a specific date is to report them as withdrawn as of the specified effective date and not as of the last day of enrollment when the University is aware the student will not be returning. As a result of further inquiry and testing, we noted that there were a total of 52 students that withdrew during the months of November, April and May. Questioned Costs: None. Cause and Effect: Currently, the University has a process that when a student informs the University at the end of a semester they will be withdrawing from the University, the University will wait until the start of the next semester to confirm the student did not enroll in the upcoming semester. By doing so, the University would report students to the NSLDS outside of the 60-day requirement. The effect of the noted condition results in an inaccurate last date of attendance reported to NSLDS which is used to determine the date a student is to be placed into repayment status and begin making payments on student loans. Identification as a Repeat Finding, if Applicable: A repeat of prior year finding 2021-003 and 2020-001 Recommendation: We recommend the University review the system generated report to verify all students are included in addition to implementing a quality control review process to be completed monthly to ensure all student changes are reviewed in a timely manner to ensure compliance with the 60-day requirement. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.
Finding Number: 2022-005 Information on the Federal Program: Federal Agency: ED Program Name: Student Financial Assistance Cluster AL: 84.063 - Federal Pell Grant Program 84.268 - Federal Direct Student Loans Federal Award Identification Number: N/A Federal Award Year: Year Ended June 30, 2022 Specific Requirement: Under the Pell Grant and Direct Loan programs, an institution must notify NSLDS within 30 days after the date that the institution discovers that a Direct loan was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended (PELL, 34 CFR section 690.83(b)(2), and Direct Loans, 34 CFR section 685.309). Conditions Found: Based on our sample, which was determined using a non-statistically based methodology, two of the 25 students tested were not reported to the NSDLS within the required timeframe. Context: The two students who were not reported timely informed the Student Financial Aid department during the Fall 2021 and Spring 2022 semesters that they would not be returning to the University for the Spring 2022 and Fall 2022 semester, respectively. It is our understanding the University?s process for all students who submit a withdrawal request to be effective for a specific date is to report them as withdrawn as of the specified effective date and not as of the last day of enrollment when the University is aware the student will not be returning. As a result of further inquiry and testing, we noted that there were a total of 52 students that withdrew during the months of November, April and May. Questioned Costs: None. Cause and Effect: Currently, the University has a process that when a student informs the University at the end of a semester they will be withdrawing from the University, the University will wait until the start of the next semester to confirm the student did not enroll in the upcoming semester. By doing so, the University would report students to the NSLDS outside of the 60-day requirement. The effect of the noted condition results in an inaccurate last date of attendance reported to NSLDS which is used to determine the date a student is to be placed into repayment status and begin making payments on student loans. Identification as a Repeat Finding, if Applicable: A repeat of prior year finding 2021-003 and 2020-001 Recommendation: We recommend the University review the system generated report to verify all students are included in addition to implementing a quality control review process to be completed monthly to ensure all student changes are reviewed in a timely manner to ensure compliance with the 60-day requirement. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.
Finding Number:2022-003 Information on the Federal Program: Federal Agency: United States Department of Education (ED) Program Name: COVID-19 ? Education Stabilization Funds (Part B) AL: 84.425 Federal Award Identification Number: N/A Federal Award Year: Year Ended June 30, 2022 Specific Requirement: Required by 2 CFR, Part 200 for federally funded programs, when an institution enters into a covered transaction with an entity or individual, the institution must verify that the vendor is not suspended or debarred or otherwise excluded from participating in federal programs. Generally, a covered transaction is a transaction expected to equal or exceed $25,000 and be funded with federal dollars. This verification may be accomplished by checking the System for Award Management (SAM), or by adding a clause or condition to the covered transaction. Condition Found: During our audit, we noted that management did not review the SAM for vendors and employees meeting the covered transaction threshold as is defined in their year-end close checklist. Context: We noted there were 3 vendors exceeding $25,000 funded by the program. Based on our testing, none of the vendors exceeding the $25,000 limit were included in the SAM and received payments funded by the University?s major programs. Questioned Costs: None. Cause and Effect: The University was aware of the requirement to verify vendors and employees and they have a process established as part of their year-end close, but the review was not completed. Since this process was not performed, there is a greater risk of vendors and employees that are included on the SAM being disbursed funds through federal funds Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that the University follow established procedures for comparing vendors and employees against the SAM and maintain documentation that the comparison has been performed. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.