FAC Explorer

Audit 327230

FY End
2024-06-30
Total Expended
$5.15M
Findings
16
Programs
5
Organization: Life Pacific University (CA)
Year: 2024 Accepted: 2024-11-04
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504647 2024-001 Material Weakness Yes N
504648 2024-001 Material Weakness Yes N
504649 2024-001 Material Weakness Yes N
504650 2024-001 Material Weakness Yes N
504651 2024-002 Significant Deficiency - N
504652 2024-002 Significant Deficiency - N
504653 2024-003 - - L
504654 2024-003 - - L
1081089 2024-001 Material Weakness Yes N
1081090 2024-001 Material Weakness Yes N
1081091 2024-001 Material Weakness Yes N
1081092 2024-001 Material Weakness Yes N
1081093 2024-002 Significant Deficiency - N
1081094 2024-002 Significant Deficiency - N
1081095 2024-003 - - L
1081096 2024-003 - - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $3.48M Yes 3
84.063 Federal Pell Grant Program $1.21M Yes 3
84.031 Higher Education Institutional Aid $391,436 - 0
84.033 Federal Work-Study Program $31,635 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $30,871 Yes 1

Contacts

Name Title Type
JD7WN8J5DTC5 Stephen Moore Auditee
8778865433 Robert J. Faulk, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Life Pacific University under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of the 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 the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in the schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If Life Pacific University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. See the notes to the SEFA for chart/table.
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Life Pacific University under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of the 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 the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in the schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If Life Pacific University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Life Pacific University did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.
Title: INSTITUTION ELIGIBILITY LIMITATIONS IN ACCORDANCE WITH 34 CFR 600.7(a)1 Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Life Pacific University under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of the 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 the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in the schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If Life Pacific University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. To maintain institutional eligibility to participate in the Department of Education’s Title IV financial aid programs, Life Pacific University is required to comply with 34 CFR 600.7(a)1 which limits the number of correspondence courses, the number of students enrolled in correspondence courses, the number of incarcerated students enrolled and the number of students enrolled without a high school diploma or recognized equivalent. As part of the audit procedures, compliance with these limitations was tested. No non-compliance with the requirements was noted.

Finding Details

Finding 2024-001
Gramm-Leach-Bliley Act (GLBA) Compliance Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033, Student Financial Assistance Cluster Federal Award Identification #: 2023-2024 Award Year Condition: Life Pacific University did not sufficiently comply with all the updated requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: Life Pacific University has not documented its written information security program, sufficiently documented its security risk assessment and safeguards for all systems, or confirmed and/or implemented multi-factor authentication on all systems containing personally identifiable information (PII). Additionally, Life Pacific University has not implemented a data deletion policy, sufficient vendor management policies and reviews, or implemented an incident response plan. Cause: Life Pacific University has experienced turnover within the last year and focused on improving the written risk assessment, continuous monitoring capabilities, and the annual report to the board. We commend Life Pacific University for these pieces with significant improvement. Effect: Life Pacific University has not adequately addressed all the remaining updated requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend Life Pacific University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Gramm-Leach-Bliley Act (GLBA) Compliance Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033, Student Financial Assistance Cluster Federal Award Identification #: 2023-2024 Award Year Condition: Life Pacific University did not sufficiently comply with all the updated requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: Life Pacific University has not documented its written information security program, sufficiently documented its security risk assessment and safeguards for all systems, or confirmed and/or implemented multi-factor authentication on all systems containing personally identifiable information (PII). Additionally, Life Pacific University has not implemented a data deletion policy, sufficient vendor management policies and reviews, or implemented an incident response plan. Cause: Life Pacific University has experienced turnover within the last year and focused on improving the written risk assessment, continuous monitoring capabilities, and the annual report to the board. We commend Life Pacific University for these pieces with significant improvement. Effect: Life Pacific University has not adequately addressed all the remaining updated requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend Life Pacific University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Gramm-Leach-Bliley Act (GLBA) Compliance Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033, Student Financial Assistance Cluster Federal Award Identification #: 2023-2024 Award Year Condition: Life Pacific University did not sufficiently comply with all the updated requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: Life Pacific University has not documented its written information security program, sufficiently documented its security risk assessment and safeguards for all systems, or confirmed and/or implemented multi-factor authentication on all systems containing personally identifiable information (PII). Additionally, Life Pacific University has not implemented a data deletion policy, sufficient vendor management policies and reviews, or implemented an incident response plan. Cause: Life Pacific University has experienced turnover within the last year and focused on improving the written risk assessment, continuous monitoring capabilities, and the annual report to the board. We commend Life Pacific University for these pieces with significant improvement. Effect: Life Pacific University has not adequately addressed all the remaining updated requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend Life Pacific University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Gramm-Leach-Bliley Act (GLBA) Compliance Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033, Student Financial Assistance Cluster Federal Award Identification #: 2023-2024 Award Year Condition: Life Pacific University did not sufficiently comply with all the updated requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: Life Pacific University has not documented its written information security program, sufficiently documented its security risk assessment and safeguards for all systems, or confirmed and/or implemented multi-factor authentication on all systems containing personally identifiable information (PII). Additionally, Life Pacific University has not implemented a data deletion policy, sufficient vendor management policies and reviews, or implemented an incident response plan. Cause: Life Pacific University has experienced turnover within the last year and focused on improving the written risk assessment, continuous monitoring capabilities, and the annual report to the board. We commend Life Pacific University for these pieces with significant improvement. Effect: Life Pacific University has not adequately addressed all the remaining updated requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend Life Pacific University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: For students withdrawn in the Spring 2024 semester, Life Pacific University did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $4,036 Context: Out of 8 students tested, 2 students who withdrew during the Spring 2024 term had R2T4 funds returned late, ranging from 92 to 158 days. The first student had an incorrect R2T4 calculation performed due to federal loans being included in the calculation when the student was ineligible to receive them, resulting in an under return of $1,285 of Pell. The second student did not have an R2T4 performed even though they withdrew during the first module, and Pell was not adjusted to reflect the correct enrollment status. This resulted in an under return of $2,751 of Pell. Another student had a correction to the R2T4 made by Life Pacific University during the Spring term resulting in an additional $159 post-withdrawal disbursement, however this was not paid out until the audit. All of these returns were corrected during the audit. Cause: Life Pacific University went through unexpected turnover at the beginning of the Spring 2024 term. All issues noted were isolated to this term. Effect: Returns of Title IV funds were not performed timely or accurately. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: For students withdrawn in the Spring 2024 semester, Life Pacific University did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $4,036 Context: Out of 8 students tested, 2 students who withdrew during the Spring 2024 term had R2T4 funds returned late, ranging from 92 to 158 days. The first student had an incorrect R2T4 calculation performed due to federal loans being included in the calculation when the student was ineligible to receive them, resulting in an under return of $1,285 of Pell. The second student did not have an R2T4 performed even though they withdrew during the first module, and Pell was not adjusted to reflect the correct enrollment status. This resulted in an under return of $2,751 of Pell. Another student had a correction to the R2T4 made by Life Pacific University during the Spring term resulting in an additional $159 post-withdrawal disbursement, however this was not paid out until the audit. All of these returns were corrected during the audit. Cause: Life Pacific University went through unexpected turnover at the beginning of the Spring 2024 term. All issues noted were isolated to this term. Effect: Returns of Title IV funds were not performed timely or accurately. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Common Origination and Disbursement (COD) Reporting DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: For the Spring 2024 term, the dates that Pell and Federal Direct Loans (FDL) awards were posted to student accounts did not always agree to disbursement records reported to Common Origination and Disbursement (COD). Criteria: 34CFR 668.164(a) Questioned Costs: $0 Context: Out of 60 students tested, all students tested that had aid disbursed in the Spring 2024 term had COD loan and Pell disbursement date errors ranging from 4 to 21 days. There were no errors in the amounts reported. Cause: Due to unexpected turnover in the financial aid office, reconciliations of Life Pacific University records to COD were not being completed regularly. This led to errors between the two systems not being identified in a timely manner. Effect: Inaccurate FDL reporting can impact a student's interest accumulating period based on the dates of the loan disbursement dates. Inaccurate Pell reporting could allow a student to exceed their lifetime limit. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that Life Pacific University implement procedures to reconcile monthly FDL and Pell disbursements to student accounts with disbursements reported to COD. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Common Origination and Disbursement (COD) Reporting DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: For the Spring 2024 term, the dates that Pell and Federal Direct Loans (FDL) awards were posted to student accounts did not always agree to disbursement records reported to Common Origination and Disbursement (COD). Criteria: 34CFR 668.164(a) Questioned Costs: $0 Context: Out of 60 students tested, all students tested that had aid disbursed in the Spring 2024 term had COD loan and Pell disbursement date errors ranging from 4 to 21 days. There were no errors in the amounts reported. Cause: Due to unexpected turnover in the financial aid office, reconciliations of Life Pacific University records to COD were not being completed regularly. This led to errors between the two systems not being identified in a timely manner. Effect: Inaccurate FDL reporting can impact a student's interest accumulating period based on the dates of the loan disbursement dates. Inaccurate Pell reporting could allow a student to exceed their lifetime limit. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that Life Pacific University implement procedures to reconcile monthly FDL and Pell disbursements to student accounts with disbursements reported to COD. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Gramm-Leach-Bliley Act (GLBA) Compliance Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033, Student Financial Assistance Cluster Federal Award Identification #: 2023-2024 Award Year Condition: Life Pacific University did not sufficiently comply with all the updated requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: Life Pacific University has not documented its written information security program, sufficiently documented its security risk assessment and safeguards for all systems, or confirmed and/or implemented multi-factor authentication on all systems containing personally identifiable information (PII). Additionally, Life Pacific University has not implemented a data deletion policy, sufficient vendor management policies and reviews, or implemented an incident response plan. Cause: Life Pacific University has experienced turnover within the last year and focused on improving the written risk assessment, continuous monitoring capabilities, and the annual report to the board. We commend Life Pacific University for these pieces with significant improvement. Effect: Life Pacific University has not adequately addressed all the remaining updated requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend Life Pacific University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Gramm-Leach-Bliley Act (GLBA) Compliance Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033, Student Financial Assistance Cluster Federal Award Identification #: 2023-2024 Award Year Condition: Life Pacific University did not sufficiently comply with all the updated requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: Life Pacific University has not documented its written information security program, sufficiently documented its security risk assessment and safeguards for all systems, or confirmed and/or implemented multi-factor authentication on all systems containing personally identifiable information (PII). Additionally, Life Pacific University has not implemented a data deletion policy, sufficient vendor management policies and reviews, or implemented an incident response plan. Cause: Life Pacific University has experienced turnover within the last year and focused on improving the written risk assessment, continuous monitoring capabilities, and the annual report to the board. We commend Life Pacific University for these pieces with significant improvement. Effect: Life Pacific University has not adequately addressed all the remaining updated requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend Life Pacific University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Gramm-Leach-Bliley Act (GLBA) Compliance Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033, Student Financial Assistance Cluster Federal Award Identification #: 2023-2024 Award Year Condition: Life Pacific University did not sufficiently comply with all the updated requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: Life Pacific University has not documented its written information security program, sufficiently documented its security risk assessment and safeguards for all systems, or confirmed and/or implemented multi-factor authentication on all systems containing personally identifiable information (PII). Additionally, Life Pacific University has not implemented a data deletion policy, sufficient vendor management policies and reviews, or implemented an incident response plan. Cause: Life Pacific University has experienced turnover within the last year and focused on improving the written risk assessment, continuous monitoring capabilities, and the annual report to the board. We commend Life Pacific University for these pieces with significant improvement. Effect: Life Pacific University has not adequately addressed all the remaining updated requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend Life Pacific University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Gramm-Leach-Bliley Act (GLBA) Compliance Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033, Student Financial Assistance Cluster Federal Award Identification #: 2023-2024 Award Year Condition: Life Pacific University did not sufficiently comply with all the updated requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: Life Pacific University has not documented its written information security program, sufficiently documented its security risk assessment and safeguards for all systems, or confirmed and/or implemented multi-factor authentication on all systems containing personally identifiable information (PII). Additionally, Life Pacific University has not implemented a data deletion policy, sufficient vendor management policies and reviews, or implemented an incident response plan. Cause: Life Pacific University has experienced turnover within the last year and focused on improving the written risk assessment, continuous monitoring capabilities, and the annual report to the board. We commend Life Pacific University for these pieces with significant improvement. Effect: Life Pacific University has not adequately addressed all the remaining updated requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend Life Pacific University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: For students withdrawn in the Spring 2024 semester, Life Pacific University did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $4,036 Context: Out of 8 students tested, 2 students who withdrew during the Spring 2024 term had R2T4 funds returned late, ranging from 92 to 158 days. The first student had an incorrect R2T4 calculation performed due to federal loans being included in the calculation when the student was ineligible to receive them, resulting in an under return of $1,285 of Pell. The second student did not have an R2T4 performed even though they withdrew during the first module, and Pell was not adjusted to reflect the correct enrollment status. This resulted in an under return of $2,751 of Pell. Another student had a correction to the R2T4 made by Life Pacific University during the Spring term resulting in an additional $159 post-withdrawal disbursement, however this was not paid out until the audit. All of these returns were corrected during the audit. Cause: Life Pacific University went through unexpected turnover at the beginning of the Spring 2024 term. All issues noted were isolated to this term. Effect: Returns of Title IV funds were not performed timely or accurately. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: For students withdrawn in the Spring 2024 semester, Life Pacific University did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $4,036 Context: Out of 8 students tested, 2 students who withdrew during the Spring 2024 term had R2T4 funds returned late, ranging from 92 to 158 days. The first student had an incorrect R2T4 calculation performed due to federal loans being included in the calculation when the student was ineligible to receive them, resulting in an under return of $1,285 of Pell. The second student did not have an R2T4 performed even though they withdrew during the first module, and Pell was not adjusted to reflect the correct enrollment status. This resulted in an under return of $2,751 of Pell. Another student had a correction to the R2T4 made by Life Pacific University during the Spring term resulting in an additional $159 post-withdrawal disbursement, however this was not paid out until the audit. All of these returns were corrected during the audit. Cause: Life Pacific University went through unexpected turnover at the beginning of the Spring 2024 term. All issues noted were isolated to this term. Effect: Returns of Title IV funds were not performed timely or accurately. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Common Origination and Disbursement (COD) Reporting DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: For the Spring 2024 term, the dates that Pell and Federal Direct Loans (FDL) awards were posted to student accounts did not always agree to disbursement records reported to Common Origination and Disbursement (COD). Criteria: 34CFR 668.164(a) Questioned Costs: $0 Context: Out of 60 students tested, all students tested that had aid disbursed in the Spring 2024 term had COD loan and Pell disbursement date errors ranging from 4 to 21 days. There were no errors in the amounts reported. Cause: Due to unexpected turnover in the financial aid office, reconciliations of Life Pacific University records to COD were not being completed regularly. This led to errors between the two systems not being identified in a timely manner. Effect: Inaccurate FDL reporting can impact a student's interest accumulating period based on the dates of the loan disbursement dates. Inaccurate Pell reporting could allow a student to exceed their lifetime limit. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that Life Pacific University implement procedures to reconcile monthly FDL and Pell disbursements to student accounts with disbursements reported to COD. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Common Origination and Disbursement (COD) Reporting DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: For the Spring 2024 term, the dates that Pell and Federal Direct Loans (FDL) awards were posted to student accounts did not always agree to disbursement records reported to Common Origination and Disbursement (COD). Criteria: 34CFR 668.164(a) Questioned Costs: $0 Context: Out of 60 students tested, all students tested that had aid disbursed in the Spring 2024 term had COD loan and Pell disbursement date errors ranging from 4 to 21 days. There were no errors in the amounts reported. Cause: Due to unexpected turnover in the financial aid office, reconciliations of Life Pacific University records to COD were not being completed regularly. This led to errors between the two systems not being identified in a timely manner. Effect: Inaccurate FDL reporting can impact a student's interest accumulating period based on the dates of the loan disbursement dates. Inaccurate Pell reporting could allow a student to exceed their lifetime limit. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that Life Pacific University implement procedures to reconcile monthly FDL and Pell disbursements to student accounts with disbursements reported to COD. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.