Audit 297270

FY End
2023-06-30
Total Expended
$4.97M
Findings
30
Programs
10
Organization: Lyon College (AR)
Year: 2023 Accepted: 2024-03-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
384146 2023-002 Significant Deficiency Yes E
384147 2023-003 Significant Deficiency - E
384148 2023-004 Significant Deficiency - L
384149 2023-002 Significant Deficiency Yes E
384150 2023-003 Significant Deficiency - E
384151 2023-004 Significant Deficiency - L
384152 2023-002 Significant Deficiency Yes E
384153 2023-003 Significant Deficiency - E
384154 2023-004 Significant Deficiency - L
384155 2023-002 Significant Deficiency Yes E
384156 2023-003 Significant Deficiency - E
384157 2023-004 Significant Deficiency - L
384158 2023-002 Significant Deficiency Yes E
384159 2023-003 Significant Deficiency - E
384160 2023-004 Significant Deficiency - L
960588 2023-002 Significant Deficiency Yes E
960589 2023-003 Significant Deficiency - E
960590 2023-004 Significant Deficiency - L
960591 2023-002 Significant Deficiency Yes E
960592 2023-003 Significant Deficiency - E
960593 2023-004 Significant Deficiency - L
960594 2023-002 Significant Deficiency Yes E
960595 2023-003 Significant Deficiency - E
960596 2023-004 Significant Deficiency - L
960597 2023-002 Significant Deficiency Yes E
960598 2023-003 Significant Deficiency - E
960599 2023-004 Significant Deficiency - L
960600 2023-002 Significant Deficiency Yes E
960601 2023-003 Significant Deficiency - E
960602 2023-004 Significant Deficiency - L

Contacts

Name Title Type
LQ5VVQY25V39 Marshall Butler Auditee
8703077322 Amanda Schultz Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Lyon College (the College) and is presented on the accrual basis of accounting. 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. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U. S. generally accepted accounting principles they are not reported in the College’s statement of activities as expenses or financial aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the College for the year and are not reportable as transactions in the College’s financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the basic financial statements. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The schedule of expenditures of federal awards includes only the current year federal grant activity of Lyon College (the College) and is presented on the accrual basis of accounting. 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. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U. S. generally accepted accounting principles they are not reported in the College’s statement of activities as expenses or financial aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the College for the year and are not reportable as transactions in the College’s financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the basic financial statements.
Title: 2. Indirect Cost Rate Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Lyon College (the College) and is presented on the accrual basis of accounting. 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. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U. S. generally accepted accounting principles they are not reported in the College’s statement of activities as expenses or financial aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the College for the year and are not reportable as transactions in the College’s financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the basic financial statements. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The College has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found one (1) instance where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found one (1) instance where changes in student status due to withdrawal were not reported timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched. Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.” Effect of Condition: We found eight (8) instances where student award letters were not retained. Cause of Condition: The College does not consistenly follow their internal policies. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account. Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement. Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account. Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements. Recommendation: We recommend the College develop a policy and procedure to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found one (1) instance where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found one (1) instance where changes in student status due to withdrawal were not reported timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched. Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.” Effect of Condition: We found eight (8) instances where student award letters were not retained. Cause of Condition: The College does not consistenly follow their internal policies. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account. Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement. Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account. Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements. Recommendation: We recommend the College develop a policy and procedure to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found one (1) instance where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found one (1) instance where changes in student status due to withdrawal were not reported timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched. Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.” Effect of Condition: We found eight (8) instances where student award letters were not retained. Cause of Condition: The College does not consistenly follow their internal policies. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account. Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement. Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account. Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements. Recommendation: We recommend the College develop a policy and procedure to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found one (1) instance where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found one (1) instance where changes in student status due to withdrawal were not reported timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched. Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.” Effect of Condition: We found eight (8) instances where student award letters were not retained. Cause of Condition: The College does not consistenly follow their internal policies. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account. Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement. Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account. Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements. Recommendation: We recommend the College develop a policy and procedure to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found one (1) instance where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found one (1) instance where changes in student status due to withdrawal were not reported timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched. Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.” Effect of Condition: We found eight (8) instances where student award letters were not retained. Cause of Condition: The College does not consistenly follow their internal policies. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account. Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement. Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account. Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements. Recommendation: We recommend the College develop a policy and procedure to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found one (1) instance where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found one (1) instance where changes in student status due to withdrawal were not reported timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched. Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.” Effect of Condition: We found eight (8) instances where student award letters were not retained. Cause of Condition: The College does not consistenly follow their internal policies. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account. Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement. Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account. Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements. Recommendation: We recommend the College develop a policy and procedure to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found one (1) instance where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found one (1) instance where changes in student status due to withdrawal were not reported timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched. Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.” Effect of Condition: We found eight (8) instances where student award letters were not retained. Cause of Condition: The College does not consistenly follow their internal policies. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account. Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement. Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account. Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements. Recommendation: We recommend the College develop a policy and procedure to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found one (1) instance where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found one (1) instance where changes in student status due to withdrawal were not reported timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched. Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.” Effect of Condition: We found eight (8) instances where student award letters were not retained. Cause of Condition: The College does not consistenly follow their internal policies. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account. Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement. Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account. Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements. Recommendation: We recommend the College develop a policy and procedure to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found one (1) instance where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found one (1) instance where changes in student status due to withdrawal were not reported timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched. Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.” Effect of Condition: We found eight (8) instances where student award letters were not retained. Cause of Condition: The College does not consistenly follow their internal policies. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account. Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement. Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account. Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements. Recommendation: We recommend the College develop a policy and procedure to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found one (1) instance where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found one (1) instance where changes in student status due to withdrawal were not reported timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched. Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.” Effect of Condition: We found eight (8) instances where student award letters were not retained. Cause of Condition: The College does not consistenly follow their internal policies. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account. Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement. Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account. Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements. Recommendation: We recommend the College develop a policy and procedure to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.