Audit 26190

Finding No. 2022-001 Reporting Federal Program Student Financial Assistance Cluster AL No. 84.268 Federal Direct Student Loans 84.063 Federal Agency U.S. Department of Education Federal Award Years October 1, 2020 to September 30, 2021 October 1, 2021 to September 30, 2022 Criteria or Requirement Under the Federal Register (82 FR 29061), all schools receiving federal direct student loans submit payment data to the Department through the Common Origination and Disbursement (COD) System. Institutions must report student payment data within 15 calendar days after the school makes a payment; or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data. Schools may do this by reporting once every 15 calendar days, biweekly or weekly or may set up their own system to ensure that changes are reported in a timely manner. Condition and Context During our testwork, we selected a sample of 40 students that were awarded federal loans during fiscal year 2022. Within our sample, we noted 5 instances across 4 students in which the College did not submit the payment data to the COD within 15 days as required. Cause and Potential Effect Noncompliance due to the controls to ensure that all reports of loan funding are submitted on a timely basis not being operated effectively. The federal loan reporting exceptions are systemic in nature. Questioned Cost There were no questioned cost associated with the finding. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat Finding in the Immediately Prior Audit This is not a repeat finding in the immediately prior year audit. Recommendation We recommend that the College strengthen its processes and controls to ensure timely reporting of loan funding to students and that additional supervisory review procedures be implemented to monitor timely reporting of these disbursements. View of Responsible Officials Management agrees with the finding. An enhanced internal control process will be implemented by the Office of Financial Aid and Scholarship Department to ensure that all disbursement records are reported to the COD within the required 15-day reporting requirement.

Finding No. 2022-001 Reporting Federal Program Student Financial Assistance Cluster AL No. 84.268 Federal Direct Student Loans 84.063 Federal Agency U.S. Department of Education Federal Award Years October 1, 2020 to September 30, 2021 October 1, 2021 to September 30, 2022 Criteria or Requirement Under the Federal Register (82 FR 29061), all schools receiving federal direct student loans submit payment data to the Department through the Common Origination and Disbursement (COD) System. Institutions must report student payment data within 15 calendar days after the school makes a payment; or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data. Schools may do this by reporting once every 15 calendar days, biweekly or weekly or may set up their own system to ensure that changes are reported in a timely manner. Condition and Context During our testwork, we selected a sample of 40 students that were awarded federal loans during fiscal year 2022. Within our sample, we noted 5 instances across 4 students in which the College did not submit the payment data to the COD within 15 days as required. Cause and Potential Effect Noncompliance due to the controls to ensure that all reports of loan funding are submitted on a timely basis not being operated effectively. The federal loan reporting exceptions are systemic in nature. Questioned Cost There were no questioned cost associated with the finding. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat Finding in the Immediately Prior Audit This is not a repeat finding in the immediately prior year audit. Recommendation We recommend that the College strengthen its processes and controls to ensure timely reporting of loan funding to students and that additional supervisory review procedures be implemented to monitor timely reporting of these disbursements. View of Responsible Officials Management agrees with the finding. An enhanced internal control process will be implemented by the Office of Financial Aid and Scholarship Department to ensure that all disbursement records are reported to the COD within the required 15-day reporting requirement.