FAC Explorer

Audit 291681

FY End
2023-06-30
Total Expended
$9.13M
Findings
12
Programs
6
Organization: Culver-Stockton College (MO)
Year: 2023 Accepted: 2024-02-22
Auditor: Wade Stables PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370156 2023-002 Significant Deficiency - EN
370157 2023-002 Significant Deficiency - EN
370158 2023-002 Significant Deficiency - EN
370159 2023-002 Significant Deficiency - EN
370160 2023-002 Significant Deficiency - EN
370161 2023-003 Significant Deficiency - N
946598 2023-002 Significant Deficiency - EN
946599 2023-002 Significant Deficiency - EN
946600 2023-002 Significant Deficiency - EN
946601 2023-002 Significant Deficiency - EN
946602 2023-002 Significant Deficiency - EN
946603 2023-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $7.20M Yes 2
84.063 Federal Pell Grant Program $1.67M Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $91,746 Yes 1
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $79,948 Yes 1
84.033 Federal Work-Study Program $62,729 Yes 1
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $24,904 - 0

Contacts

Name Title Type
H7L6MLH8GFP1 Julie Straus Auditee
5732886314 Anita Failor Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting which is described in Note 1 of the College’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2023, the College did not recover indirect costs from federal awards, other than administrative cost allowances received under the student financial assistance programs. The 10% de minimis indirect cost rate was not used. The accompanying Schedule of Expenditures of Federal Awards includes the federal award transactions of Culver- Stockton College under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: STUDENT LOAN PROGRAMS Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting which is described in Note 1 of the College’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2023, the College did not recover indirect costs from federal awards, other than administrative cost allowances received under the student financial assistance programs. The 10% de minimis indirect cost rate was not used. The following schedule represents loans advanced by the College and outstanding at and for the year ended June 30, 2023:
Title: RECONCILIATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE STATEMENT OF ACTIVITIES Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting which is described in Note 1 of the College’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2023, the College did not recover indirect costs from federal awards, other than administrative cost allowances received under the student financial assistance programs. The 10% de minimis indirect cost rate was not used. The following schedule is a reconciliation of total expenditures as shown on the Schedule of Expenditures of Federal Awards to the revenue item shown as student financial aid on the Statement of Activities:
Title: NONCASH ASSISTANCE AND FEDERAL INSURANCE Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting which is described in Note 1 of the College’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2023, the College did not recover indirect costs from federal awards, other than administrative cost allowances received under the student financial assistance programs. The 10% de minimis indirect cost rate was not used. The College did not receive any federal noncash assistance and had no federal insurance in effect during the year ended June 30, 2023.

Finding Details

Finding 2023-002
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Eligibility and Special Tests and Provisions Criteria: In accordance with 2 CFR 200.303, the College must establish and maintain effective internal control over the Federal awards to provide reasonable assurance the College is in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The College must have systems in place that provide reasonable assurance that the information is accurate, allowable, and in compliance with the terms and conditions of the grant agreement. Volume 4 of the Federal Student Aid Handbook states a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls. Effective internal control systems ensure the College is meeting its fiduciary responsibilities related to Title IV funds. Condition: Overrides for special circumstance requests and income verifications can be performed by any individual with access to the College’s financial aid packaging software without prior approval. Cause of Condition: An internal control over electronic data processing for software security is missing. Effect: Unauthorized overrides to student eligibility and income, which would affect the level of a student’s award. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: Volume 4 of the Federal Student Aid Handbook states that electronic data processing controls should be in place to only allow individuals with special security classifications to make changes to the programs that determine student need and awards. The system should also be able to identify the individuals who make such changes. Due to the smaller size of the College and limited staff and resources, it is not feasible for the College to restrict security access. Thus, we recommend a review system be put in place prior to the entry of system overrides in the software system to ensure the override is properly authorized. Views of Responsible Official(s): The College implemented a policy where all special circumstance requests and income verification overrides must be reviewed by a second staff member effective September 2023. The second staff member reviews each override, either approves or denies the paperwork, then signs and dates the paperwork. The paperwork is returned to the first staff member to make the changes in PowerFAIDS. The responsible college official is Tina Wiseman, Director of Financial Aid. See Corrective Action Plan.
Finding 2023-002
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Eligibility and Special Tests and Provisions Criteria: In accordance with 2 CFR 200.303, the College must establish and maintain effective internal control over the Federal awards to provide reasonable assurance the College is in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The College must have systems in place that provide reasonable assurance that the information is accurate, allowable, and in compliance with the terms and conditions of the grant agreement. Volume 4 of the Federal Student Aid Handbook states a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls. Effective internal control systems ensure the College is meeting its fiduciary responsibilities related to Title IV funds. Condition: Overrides for special circumstance requests and income verifications can be performed by any individual with access to the College’s financial aid packaging software without prior approval. Cause of Condition: An internal control over electronic data processing for software security is missing. Effect: Unauthorized overrides to student eligibility and income, which would affect the level of a student’s award. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: Volume 4 of the Federal Student Aid Handbook states that electronic data processing controls should be in place to only allow individuals with special security classifications to make changes to the programs that determine student need and awards. The system should also be able to identify the individuals who make such changes. Due to the smaller size of the College and limited staff and resources, it is not feasible for the College to restrict security access. Thus, we recommend a review system be put in place prior to the entry of system overrides in the software system to ensure the override is properly authorized. Views of Responsible Official(s): The College implemented a policy where all special circumstance requests and income verification overrides must be reviewed by a second staff member effective September 2023. The second staff member reviews each override, either approves or denies the paperwork, then signs and dates the paperwork. The paperwork is returned to the first staff member to make the changes in PowerFAIDS. The responsible college official is Tina Wiseman, Director of Financial Aid. See Corrective Action Plan.
Finding 2023-002
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Eligibility and Special Tests and Provisions Criteria: In accordance with 2 CFR 200.303, the College must establish and maintain effective internal control over the Federal awards to provide reasonable assurance the College is in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The College must have systems in place that provide reasonable assurance that the information is accurate, allowable, and in compliance with the terms and conditions of the grant agreement. Volume 4 of the Federal Student Aid Handbook states a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls. Effective internal control systems ensure the College is meeting its fiduciary responsibilities related to Title IV funds. Condition: Overrides for special circumstance requests and income verifications can be performed by any individual with access to the College’s financial aid packaging software without prior approval. Cause of Condition: An internal control over electronic data processing for software security is missing. Effect: Unauthorized overrides to student eligibility and income, which would affect the level of a student’s award. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: Volume 4 of the Federal Student Aid Handbook states that electronic data processing controls should be in place to only allow individuals with special security classifications to make changes to the programs that determine student need and awards. The system should also be able to identify the individuals who make such changes. Due to the smaller size of the College and limited staff and resources, it is not feasible for the College to restrict security access. Thus, we recommend a review system be put in place prior to the entry of system overrides in the software system to ensure the override is properly authorized. Views of Responsible Official(s): The College implemented a policy where all special circumstance requests and income verification overrides must be reviewed by a second staff member effective September 2023. The second staff member reviews each override, either approves or denies the paperwork, then signs and dates the paperwork. The paperwork is returned to the first staff member to make the changes in PowerFAIDS. The responsible college official is Tina Wiseman, Director of Financial Aid. See Corrective Action Plan.
Finding 2023-002
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Eligibility and Special Tests and Provisions Criteria: In accordance with 2 CFR 200.303, the College must establish and maintain effective internal control over the Federal awards to provide reasonable assurance the College is in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The College must have systems in place that provide reasonable assurance that the information is accurate, allowable, and in compliance with the terms and conditions of the grant agreement. Volume 4 of the Federal Student Aid Handbook states a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls. Effective internal control systems ensure the College is meeting its fiduciary responsibilities related to Title IV funds. Condition: Overrides for special circumstance requests and income verifications can be performed by any individual with access to the College’s financial aid packaging software without prior approval. Cause of Condition: An internal control over electronic data processing for software security is missing. Effect: Unauthorized overrides to student eligibility and income, which would affect the level of a student’s award. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: Volume 4 of the Federal Student Aid Handbook states that electronic data processing controls should be in place to only allow individuals with special security classifications to make changes to the programs that determine student need and awards. The system should also be able to identify the individuals who make such changes. Due to the smaller size of the College and limited staff and resources, it is not feasible for the College to restrict security access. Thus, we recommend a review system be put in place prior to the entry of system overrides in the software system to ensure the override is properly authorized. Views of Responsible Official(s): The College implemented a policy where all special circumstance requests and income verification overrides must be reviewed by a second staff member effective September 2023. The second staff member reviews each override, either approves or denies the paperwork, then signs and dates the paperwork. The paperwork is returned to the first staff member to make the changes in PowerFAIDS. The responsible college official is Tina Wiseman, Director of Financial Aid. See Corrective Action Plan.
Finding 2023-002
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Eligibility and Special Tests and Provisions Criteria: In accordance with 2 CFR 200.303, the College must establish and maintain effective internal control over the Federal awards to provide reasonable assurance the College is in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The College must have systems in place that provide reasonable assurance that the information is accurate, allowable, and in compliance with the terms and conditions of the grant agreement. Volume 4 of the Federal Student Aid Handbook states a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls. Effective internal control systems ensure the College is meeting its fiduciary responsibilities related to Title IV funds. Condition: Overrides for special circumstance requests and income verifications can be performed by any individual with access to the College’s financial aid packaging software without prior approval. Cause of Condition: An internal control over electronic data processing for software security is missing. Effect: Unauthorized overrides to student eligibility and income, which would affect the level of a student’s award. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: Volume 4 of the Federal Student Aid Handbook states that electronic data processing controls should be in place to only allow individuals with special security classifications to make changes to the programs that determine student need and awards. The system should also be able to identify the individuals who make such changes. Due to the smaller size of the College and limited staff and resources, it is not feasible for the College to restrict security access. Thus, we recommend a review system be put in place prior to the entry of system overrides in the software system to ensure the override is properly authorized. Views of Responsible Official(s): The College implemented a policy where all special circumstance requests and income verification overrides must be reviewed by a second staff member effective September 2023. The second staff member reviews each override, either approves or denies the paperwork, then signs and dates the paperwork. The paperwork is returned to the first staff member to make the changes in PowerFAIDS. The responsible college official is Tina Wiseman, Director of Financial Aid. See Corrective Action Plan.
Finding 2023-003
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Special Tests and Provisions Criteria: In accordance with 34 CFR 685.304(b) and as stated in Volume 2 of the Federal Student Aid Handbook, schools are required to provide exit counseling for student borrowers in the Direct Loan programs that have graduated, leave school or drop below half-time enrollment within 30 days of learning that the borrower has withdrawn or failed to participate in an exit counseling session. Condition: During the course of our audit, we sampled 60 students that received Title IV funds and within that sample, 15 students should have received notification regarding exit counseling. We found four students were not promptly notified of the need to complete exit counseling. Cause of Condition: Exit counseling notification was not sent within the required 30 day timeframe due to an oversight. Effect: Exit counseling provides students with essential information to prepare students for loan repayment. Additionally, information is collected from the exit counseling that is given to the student’s loan servicer which affects the grace period associated with loan repayment. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: We recommend the College employ stronger oversight in this area by implementing procedures to ensure the proper notification can be sent to students who graduate or withdraw in a timely manner of when the College has learned the student is no longer enrolled. Views of Responsible Official(s): The College implemented the following policies in the attached Corrective Action Plan effective September 2023. The responsible college officer is Tina Wiseman, Director of Financial Aid.
Finding 2023-002
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Eligibility and Special Tests and Provisions Criteria: In accordance with 2 CFR 200.303, the College must establish and maintain effective internal control over the Federal awards to provide reasonable assurance the College is in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The College must have systems in place that provide reasonable assurance that the information is accurate, allowable, and in compliance with the terms and conditions of the grant agreement. Volume 4 of the Federal Student Aid Handbook states a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls. Effective internal control systems ensure the College is meeting its fiduciary responsibilities related to Title IV funds. Condition: Overrides for special circumstance requests and income verifications can be performed by any individual with access to the College’s financial aid packaging software without prior approval. Cause of Condition: An internal control over electronic data processing for software security is missing. Effect: Unauthorized overrides to student eligibility and income, which would affect the level of a student’s award. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: Volume 4 of the Federal Student Aid Handbook states that electronic data processing controls should be in place to only allow individuals with special security classifications to make changes to the programs that determine student need and awards. The system should also be able to identify the individuals who make such changes. Due to the smaller size of the College and limited staff and resources, it is not feasible for the College to restrict security access. Thus, we recommend a review system be put in place prior to the entry of system overrides in the software system to ensure the override is properly authorized. Views of Responsible Official(s): The College implemented a policy where all special circumstance requests and income verification overrides must be reviewed by a second staff member effective September 2023. The second staff member reviews each override, either approves or denies the paperwork, then signs and dates the paperwork. The paperwork is returned to the first staff member to make the changes in PowerFAIDS. The responsible college official is Tina Wiseman, Director of Financial Aid. See Corrective Action Plan.
Finding 2023-002
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Eligibility and Special Tests and Provisions Criteria: In accordance with 2 CFR 200.303, the College must establish and maintain effective internal control over the Federal awards to provide reasonable assurance the College is in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The College must have systems in place that provide reasonable assurance that the information is accurate, allowable, and in compliance with the terms and conditions of the grant agreement. Volume 4 of the Federal Student Aid Handbook states a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls. Effective internal control systems ensure the College is meeting its fiduciary responsibilities related to Title IV funds. Condition: Overrides for special circumstance requests and income verifications can be performed by any individual with access to the College’s financial aid packaging software without prior approval. Cause of Condition: An internal control over electronic data processing for software security is missing. Effect: Unauthorized overrides to student eligibility and income, which would affect the level of a student’s award. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: Volume 4 of the Federal Student Aid Handbook states that electronic data processing controls should be in place to only allow individuals with special security classifications to make changes to the programs that determine student need and awards. The system should also be able to identify the individuals who make such changes. Due to the smaller size of the College and limited staff and resources, it is not feasible for the College to restrict security access. Thus, we recommend a review system be put in place prior to the entry of system overrides in the software system to ensure the override is properly authorized. Views of Responsible Official(s): The College implemented a policy where all special circumstance requests and income verification overrides must be reviewed by a second staff member effective September 2023. The second staff member reviews each override, either approves or denies the paperwork, then signs and dates the paperwork. The paperwork is returned to the first staff member to make the changes in PowerFAIDS. The responsible college official is Tina Wiseman, Director of Financial Aid. See Corrective Action Plan.
Finding 2023-002
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Eligibility and Special Tests and Provisions Criteria: In accordance with 2 CFR 200.303, the College must establish and maintain effective internal control over the Federal awards to provide reasonable assurance the College is in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The College must have systems in place that provide reasonable assurance that the information is accurate, allowable, and in compliance with the terms and conditions of the grant agreement. Volume 4 of the Federal Student Aid Handbook states a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls. Effective internal control systems ensure the College is meeting its fiduciary responsibilities related to Title IV funds. Condition: Overrides for special circumstance requests and income verifications can be performed by any individual with access to the College’s financial aid packaging software without prior approval. Cause of Condition: An internal control over electronic data processing for software security is missing. Effect: Unauthorized overrides to student eligibility and income, which would affect the level of a student’s award. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: Volume 4 of the Federal Student Aid Handbook states that electronic data processing controls should be in place to only allow individuals with special security classifications to make changes to the programs that determine student need and awards. The system should also be able to identify the individuals who make such changes. Due to the smaller size of the College and limited staff and resources, it is not feasible for the College to restrict security access. Thus, we recommend a review system be put in place prior to the entry of system overrides in the software system to ensure the override is properly authorized. Views of Responsible Official(s): The College implemented a policy where all special circumstance requests and income verification overrides must be reviewed by a second staff member effective September 2023. The second staff member reviews each override, either approves or denies the paperwork, then signs and dates the paperwork. The paperwork is returned to the first staff member to make the changes in PowerFAIDS. The responsible college official is Tina Wiseman, Director of Financial Aid. See Corrective Action Plan.
Finding 2023-002
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Eligibility and Special Tests and Provisions Criteria: In accordance with 2 CFR 200.303, the College must establish and maintain effective internal control over the Federal awards to provide reasonable assurance the College is in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The College must have systems in place that provide reasonable assurance that the information is accurate, allowable, and in compliance with the terms and conditions of the grant agreement. Volume 4 of the Federal Student Aid Handbook states a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls. Effective internal control systems ensure the College is meeting its fiduciary responsibilities related to Title IV funds. Condition: Overrides for special circumstance requests and income verifications can be performed by any individual with access to the College’s financial aid packaging software without prior approval. Cause of Condition: An internal control over electronic data processing for software security is missing. Effect: Unauthorized overrides to student eligibility and income, which would affect the level of a student’s award. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: Volume 4 of the Federal Student Aid Handbook states that electronic data processing controls should be in place to only allow individuals with special security classifications to make changes to the programs that determine student need and awards. The system should also be able to identify the individuals who make such changes. Due to the smaller size of the College and limited staff and resources, it is not feasible for the College to restrict security access. Thus, we recommend a review system be put in place prior to the entry of system overrides in the software system to ensure the override is properly authorized. Views of Responsible Official(s): The College implemented a policy where all special circumstance requests and income verification overrides must be reviewed by a second staff member effective September 2023. The second staff member reviews each override, either approves or denies the paperwork, then signs and dates the paperwork. The paperwork is returned to the first staff member to make the changes in PowerFAIDS. The responsible college official is Tina Wiseman, Director of Financial Aid. See Corrective Action Plan.
Finding 2023-002
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Eligibility and Special Tests and Provisions Criteria: In accordance with 2 CFR 200.303, the College must establish and maintain effective internal control over the Federal awards to provide reasonable assurance the College is in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The College must have systems in place that provide reasonable assurance that the information is accurate, allowable, and in compliance with the terms and conditions of the grant agreement. Volume 4 of the Federal Student Aid Handbook states a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls. Effective internal control systems ensure the College is meeting its fiduciary responsibilities related to Title IV funds. Condition: Overrides for special circumstance requests and income verifications can be performed by any individual with access to the College’s financial aid packaging software without prior approval. Cause of Condition: An internal control over electronic data processing for software security is missing. Effect: Unauthorized overrides to student eligibility and income, which would affect the level of a student’s award. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: Volume 4 of the Federal Student Aid Handbook states that electronic data processing controls should be in place to only allow individuals with special security classifications to make changes to the programs that determine student need and awards. The system should also be able to identify the individuals who make such changes. Due to the smaller size of the College and limited staff and resources, it is not feasible for the College to restrict security access. Thus, we recommend a review system be put in place prior to the entry of system overrides in the software system to ensure the override is properly authorized. Views of Responsible Official(s): The College implemented a policy where all special circumstance requests and income verification overrides must be reviewed by a second staff member effective September 2023. The second staff member reviews each override, either approves or denies the paperwork, then signs and dates the paperwork. The paperwork is returned to the first staff member to make the changes in PowerFAIDS. The responsible college official is Tina Wiseman, Director of Financial Aid. See Corrective Action Plan.
Finding 2023-003
Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Special Tests and Provisions Criteria: In accordance with 34 CFR 685.304(b) and as stated in Volume 2 of the Federal Student Aid Handbook, schools are required to provide exit counseling for student borrowers in the Direct Loan programs that have graduated, leave school or drop below half-time enrollment within 30 days of learning that the borrower has withdrawn or failed to participate in an exit counseling session. Condition: During the course of our audit, we sampled 60 students that received Title IV funds and within that sample, 15 students should have received notification regarding exit counseling. We found four students were not promptly notified of the need to complete exit counseling. Cause of Condition: Exit counseling notification was not sent within the required 30 day timeframe due to an oversight. Effect: Exit counseling provides students with essential information to prepare students for loan repayment. Additionally, information is collected from the exit counseling that is given to the student’s loan servicer which affects the grace period associated with loan repayment. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: We recommend the College employ stronger oversight in this area by implementing procedures to ensure the proper notification can be sent to students who graduate or withdraw in a timely manner of when the College has learned the student is no longer enrolled. Views of Responsible Official(s): The College implemented the following policies in the attached Corrective Action Plan effective September 2023. The responsible college officer is Tina Wiseman, Director of Financial Aid.