FAC Explorer

Audit 27745

FY End
2022-08-31
Total Expended
$22.37M
Findings
4
Programs
9
Organization: Trinity Valley Community College (TX)
Year: 2022 Accepted: 2023-01-30
Auditor: Gollob Morgan Peddy PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32076 2022-001 Significant Deficiency - N
32077 2022-002 Significant Deficiency - N
608518 2022-001 Significant Deficiency - N
608519 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $7.85M Yes 0
84.268 Federal Direct Student Loans $4.62M Yes 2
84.425 Education Stabilization Fund $439,360 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $321,246 - 0
84.007 Federal Supplemental Educational Opportunity Grants $213,560 Yes 0
84.033 Federal Work-Study Program $77,147 Yes 0
59.037 Small Business Development Centers $37,223 - 0
84.002 Adult Education - Basic Grants to States $5,313 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $854 - 0

Contacts

Name Title Type
X6HBCED7NLJ8 David Hopkins Auditee
9036756304 Kevin Cashion Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2 FEDERAL FINANCIAL ASSISTANCE RECONCILIATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of TrinityValley Community College under programs of the federal government for the year ended August 31, 2022and is presented on the modified accrual basis of accounting. The information in this schedule ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards(Uniform Guidance).Expenditure reports to funding agencies are prepared on the award period basis. The expendituresreported above represent funds which have been expended by Trinity Valley Community College for thepurposes of the award. The expenditures reported above may not have been reimbursed by the fundingagencies as of the end of the fiscal year. Some amounts reported in the schedule may differ fromamounts used in the preparation of the basic financial statements. Separate accounts are maintained forthe different awards to aid in the observance of limitations and restrictions imposed by the fundingagencies. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. NOTE 2 FEDERAL FINANCIAL ASSISTANCE RECONCILIATIONFederal Grants and Contracts per Schedule A $ 9,658,993Non Operating Revenue From Schedule C 8,156,385Direct Student Loans 4,617,427Timing Difference for Reporting on SBDC Grant (62,024)Total Federal Financial Assistance Schedule E $ 22,370,781

Finding Details

Finding 2022-001
Finding 2022-001: Information on the Federal Program: CFDA 84.268 ? Federal Direct Student Loan. United States of Department of Education Compliance Requirements: Special Tests and Provisions Type of Finding: Significant deficiency. Criteria: Program requirements state that the institution must notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student?s right, or parent?s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; 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, TEACH Grant, or TEACH Grant disbursement. The notification requirement for loan funds applies only if the funds are disbursed by EFT payment or master check (34 CFR 668.165). Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student?s account at the institution with Direct Loan or TEACH Grants. Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student?s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition: For each student in the sample selection of Title IV students who received Direct Loans we reviewed the school?s documentation to ensure a disbursement notification was sent within the required time frame. Questioned Costs: $0 Context: Twenty-six students in the sample selection were identified as not receiving a loan disbursement notification due to a personnel change in the Financial Aid Department. Effect or Potential Effect: Students were not provided information concerning the date and amount of the disbursement, the right to cancel all or a portion of the loan, and the process by which the student or parent must notify the institution that he or she wishes to cancel the loan. Cause: Internal control process failure. Repeat Finding: No Recommendation: The Financial Aid Office should implement an internal control process/procedure to ensure that all students? receiving direct loan awards are receiving a disbursement notification within the required timeframe. Views of Responsible Official: We agree with this finding and recommendation. TVCC Financial Aid Office experienced a change in personnel that caused the email notification not to be sent out to these students. The Financial Aid Office has updated their process for emailing notifications to students. Please see the attached action plan related to this finding in this report.
Finding 2022-002
Finding 2022-002: Information on the Federal Program: CFDA 84.268 ? Federal Direct Student Loan. United States of Department of Education. Compliance Requirements: Special Tests and Provisions Type of Finding: Significant deficiency. Criteria: Program requirements state that the institution may not disburse or deliver the first installment of Direct Loans to first-year undergraduates who are first time borrowers until 30 days after the student?s first day of classes (34 CFR 668.164(i)(2)). Condition: For each student in the sample selection receiving direct loans, we reviewed the school?s documentation to determine if the student was a first-year undergraduates who are first time borrowers to determine is the institution disburse the first installment of direct loans until 30 days after the first day of class. Questioned Costs: $0 Context: We identified one student who was not coded as first-year undergraduate who was a first-time borrower in the Colleague System when he should have. This incorrect coding caused the student to receive their first installment of direct loans before the 30 days required time frame. Effect or Potential Effect: Early distribution to first-year undergraduates who are first time borrowers students who are subject to the 30-day delayed disbursement requirement Cause: Internal control process failure. Repeat Finding: No. Recommendation: TVCC should develop and institute a sustainable internal control system for appropriate identification of first-year undergraduates who are first time borrowers. Views of Responsible Official: We agree with this finding and recommendation. The student identified in this finding did not attend in the fall and when switching over to a spring summer loan the student was coded incorrectly. The TVCC Financial Aid Office has updated our process in packaging students, that start in the spring term and did not attend in the fall, to include reviewing those students manually. Please see the attached action plan related to this finding in this report.
Finding 2022-001
Finding 2022-001: Information on the Federal Program: CFDA 84.268 ? Federal Direct Student Loan. United States of Department of Education Compliance Requirements: Special Tests and Provisions Type of Finding: Significant deficiency. Criteria: Program requirements state that the institution must notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student?s right, or parent?s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; 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, TEACH Grant, or TEACH Grant disbursement. The notification requirement for loan funds applies only if the funds are disbursed by EFT payment or master check (34 CFR 668.165). Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student?s account at the institution with Direct Loan or TEACH Grants. Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student?s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition: For each student in the sample selection of Title IV students who received Direct Loans we reviewed the school?s documentation to ensure a disbursement notification was sent within the required time frame. Questioned Costs: $0 Context: Twenty-six students in the sample selection were identified as not receiving a loan disbursement notification due to a personnel change in the Financial Aid Department. Effect or Potential Effect: Students were not provided information concerning the date and amount of the disbursement, the right to cancel all or a portion of the loan, and the process by which the student or parent must notify the institution that he or she wishes to cancel the loan. Cause: Internal control process failure. Repeat Finding: No Recommendation: The Financial Aid Office should implement an internal control process/procedure to ensure that all students? receiving direct loan awards are receiving a disbursement notification within the required timeframe. Views of Responsible Official: We agree with this finding and recommendation. TVCC Financial Aid Office experienced a change in personnel that caused the email notification not to be sent out to these students. The Financial Aid Office has updated their process for emailing notifications to students. Please see the attached action plan related to this finding in this report.
Finding 2022-002
Finding 2022-002: Information on the Federal Program: CFDA 84.268 ? Federal Direct Student Loan. United States of Department of Education. Compliance Requirements: Special Tests and Provisions Type of Finding: Significant deficiency. Criteria: Program requirements state that the institution may not disburse or deliver the first installment of Direct Loans to first-year undergraduates who are first time borrowers until 30 days after the student?s first day of classes (34 CFR 668.164(i)(2)). Condition: For each student in the sample selection receiving direct loans, we reviewed the school?s documentation to determine if the student was a first-year undergraduates who are first time borrowers to determine is the institution disburse the first installment of direct loans until 30 days after the first day of class. Questioned Costs: $0 Context: We identified one student who was not coded as first-year undergraduate who was a first-time borrower in the Colleague System when he should have. This incorrect coding caused the student to receive their first installment of direct loans before the 30 days required time frame. Effect or Potential Effect: Early distribution to first-year undergraduates who are first time borrowers students who are subject to the 30-day delayed disbursement requirement Cause: Internal control process failure. Repeat Finding: No. Recommendation: TVCC should develop and institute a sustainable internal control system for appropriate identification of first-year undergraduates who are first time borrowers. Views of Responsible Official: We agree with this finding and recommendation. The student identified in this finding did not attend in the fall and when switching over to a spring summer loan the student was coded incorrectly. The TVCC Financial Aid Office has updated our process in packaging students, that start in the spring term and did not attend in the fall, to include reviewing those students manually. Please see the attached action plan related to this finding in this report.