2024‐001
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Special Tests and Provisions – Return to Title IV
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR section 668.22(e) states that if a student withdraws from classes and has received student financial aid the amount of unearned Title IV assistance must be calculated and returned to the Department of Education.
Condition:
During our review of the Return of Title IV funds, there were five instances out of nineteen in which the Title IV funds to be returned was calculated incorrectly.
Cause:
The College’s existing control procedures for reconciling student withdrawals with amounts returned did not detect the error.
Effect:
The funds required to be returned were not the correct amount to be remitted to the Department of Education.
Questioned Costs:
None reported
Sampling:
A nonstatistical sample of 19 returns out of 118 returns were selected for Return of Title IV testing.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all withdrawn students that received federal funds and whether the Return of Title IV funds was calculated correctly, and the amount calculated was appropriately remitted back to the Department of Education (DOE).
Views of Responsible Officials:
The Director of Financial Aid agrees with the audit finding. Subsequent to the audit finding, the Director of Financial Aid initiated process changes to review calculations and the return of federal funds for student withdrawals. In addition, and as a result of recent changes in personnel in the Financial Aid Department, the Director of Financial Aid is conducting an overall review of the processes and controls for awards and adjustments in student financial aid.
2024‐002
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Cash Management
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR 676.21(a) The Federal share of the FSEOG awards made by an institution may not exceed 75 percent of the amount of FSEOG awards made by that institution.
34 CFR 675.26(a) The Federal share of FWS compensation paid to a student employed other than by a private for-profit organization, as described in § 675.23, may not exceed 75 percent unless the Secretary approves a higher share under paragraph (a)(2) or (d) of this section.
Condition:
During our review of the cash management associated with the match for FSEOG and FWS, it was discovered that the match required by the College of 25 percent, as noted above the federal share of FSEOG and FWS may not exceed 75 percent of total FSEOG and FWS awards, was not performed and there was no waiver to relieve the college of the match requirement.
Cause:
The College’s existing control procedures for matching the federal funding for FSEOG and FWS reconciling did not detect the error.
Effect:
The drawdown of funds associated with FSEOG and FWS from the Department of Education was over drawn as the College did not perform the match associated with the two programs.
Questioned Costs:
None reported
Sampling:
No sampling was done as the match for the year was not performed.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all FSEOG and FWS drawdowns to ensure that the match is appropriately applied before submitting to the Department of Education.
Views of Responsible Officials:
The Director of Financial Aid and VP of Finance and Business agrees with the audit finding. Subsequent to the audit finding, the VP of Finance and Business initiated process changes to review the drawdowns and submitted a revision of drawdowns to the Department of Education to correct the two program drawdowns as needed. In addition, the trial balance and financial statement amounts were also adjusted to reflect the match for fiscal year 2024. The Director of Financial Aid and VP of Finance and Business will be conducting a review of the processes and controls for FSEOG and FWS closely to ensure this does not occur again.
2024‐001
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Special Tests and Provisions – Return to Title IV
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR section 668.22(e) states that if a student withdraws from classes and has received student financial aid the amount of unearned Title IV assistance must be calculated and returned to the Department of Education.
Condition:
During our review of the Return of Title IV funds, there were five instances out of nineteen in which the Title IV funds to be returned was calculated incorrectly.
Cause:
The College’s existing control procedures for reconciling student withdrawals with amounts returned did not detect the error.
Effect:
The funds required to be returned were not the correct amount to be remitted to the Department of Education.
Questioned Costs:
None reported
Sampling:
A nonstatistical sample of 19 returns out of 118 returns were selected for Return of Title IV testing.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all withdrawn students that received federal funds and whether the Return of Title IV funds was calculated correctly, and the amount calculated was appropriately remitted back to the Department of Education (DOE).
Views of Responsible Officials:
The Director of Financial Aid agrees with the audit finding. Subsequent to the audit finding, the Director of Financial Aid initiated process changes to review calculations and the return of federal funds for student withdrawals. In addition, and as a result of recent changes in personnel in the Financial Aid Department, the Director of Financial Aid is conducting an overall review of the processes and controls for awards and adjustments in student financial aid.
2024‐002
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Cash Management
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR 676.21(a) The Federal share of the FSEOG awards made by an institution may not exceed 75 percent of the amount of FSEOG awards made by that institution.
34 CFR 675.26(a) The Federal share of FWS compensation paid to a student employed other than by a private for-profit organization, as described in § 675.23, may not exceed 75 percent unless the Secretary approves a higher share under paragraph (a)(2) or (d) of this section.
Condition:
During our review of the cash management associated with the match for FSEOG and FWS, it was discovered that the match required by the College of 25 percent, as noted above the federal share of FSEOG and FWS may not exceed 75 percent of total FSEOG and FWS awards, was not performed and there was no waiver to relieve the college of the match requirement.
Cause:
The College’s existing control procedures for matching the federal funding for FSEOG and FWS reconciling did not detect the error.
Effect:
The drawdown of funds associated with FSEOG and FWS from the Department of Education was over drawn as the College did not perform the match associated with the two programs.
Questioned Costs:
None reported
Sampling:
No sampling was done as the match for the year was not performed.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all FSEOG and FWS drawdowns to ensure that the match is appropriately applied before submitting to the Department of Education.
Views of Responsible Officials:
The Director of Financial Aid and VP of Finance and Business agrees with the audit finding. Subsequent to the audit finding, the VP of Finance and Business initiated process changes to review the drawdowns and submitted a revision of drawdowns to the Department of Education to correct the two program drawdowns as needed. In addition, the trial balance and financial statement amounts were also adjusted to reflect the match for fiscal year 2024. The Director of Financial Aid and VP of Finance and Business will be conducting a review of the processes and controls for FSEOG and FWS closely to ensure this does not occur again.
2024‐001
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Special Tests and Provisions – Return to Title IV
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR section 668.22(e) states that if a student withdraws from classes and has received student financial aid the amount of unearned Title IV assistance must be calculated and returned to the Department of Education.
Condition:
During our review of the Return of Title IV funds, there were five instances out of nineteen in which the Title IV funds to be returned was calculated incorrectly.
Cause:
The College’s existing control procedures for reconciling student withdrawals with amounts returned did not detect the error.
Effect:
The funds required to be returned were not the correct amount to be remitted to the Department of Education.
Questioned Costs:
None reported
Sampling:
A nonstatistical sample of 19 returns out of 118 returns were selected for Return of Title IV testing.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all withdrawn students that received federal funds and whether the Return of Title IV funds was calculated correctly, and the amount calculated was appropriately remitted back to the Department of Education (DOE).
Views of Responsible Officials:
The Director of Financial Aid agrees with the audit finding. Subsequent to the audit finding, the Director of Financial Aid initiated process changes to review calculations and the return of federal funds for student withdrawals. In addition, and as a result of recent changes in personnel in the Financial Aid Department, the Director of Financial Aid is conducting an overall review of the processes and controls for awards and adjustments in student financial aid.
2024‐002
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Cash Management
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR 676.21(a) The Federal share of the FSEOG awards made by an institution may not exceed 75 percent of the amount of FSEOG awards made by that institution.
34 CFR 675.26(a) The Federal share of FWS compensation paid to a student employed other than by a private for-profit organization, as described in § 675.23, may not exceed 75 percent unless the Secretary approves a higher share under paragraph (a)(2) or (d) of this section.
Condition:
During our review of the cash management associated with the match for FSEOG and FWS, it was discovered that the match required by the College of 25 percent, as noted above the federal share of FSEOG and FWS may not exceed 75 percent of total FSEOG and FWS awards, was not performed and there was no waiver to relieve the college of the match requirement.
Cause:
The College’s existing control procedures for matching the federal funding for FSEOG and FWS reconciling did not detect the error.
Effect:
The drawdown of funds associated with FSEOG and FWS from the Department of Education was over drawn as the College did not perform the match associated with the two programs.
Questioned Costs:
None reported
Sampling:
No sampling was done as the match for the year was not performed.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all FSEOG and FWS drawdowns to ensure that the match is appropriately applied before submitting to the Department of Education.
Views of Responsible Officials:
The Director of Financial Aid and VP of Finance and Business agrees with the audit finding. Subsequent to the audit finding, the VP of Finance and Business initiated process changes to review the drawdowns and submitted a revision of drawdowns to the Department of Education to correct the two program drawdowns as needed. In addition, the trial balance and financial statement amounts were also adjusted to reflect the match for fiscal year 2024. The Director of Financial Aid and VP of Finance and Business will be conducting a review of the processes and controls for FSEOG and FWS closely to ensure this does not occur again.
2024‐001
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Special Tests and Provisions – Return to Title IV
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR section 668.22(e) states that if a student withdraws from classes and has received student financial aid the amount of unearned Title IV assistance must be calculated and returned to the Department of Education.
Condition:
During our review of the Return of Title IV funds, there were five instances out of nineteen in which the Title IV funds to be returned was calculated incorrectly.
Cause:
The College’s existing control procedures for reconciling student withdrawals with amounts returned did not detect the error.
Effect:
The funds required to be returned were not the correct amount to be remitted to the Department of Education.
Questioned Costs:
None reported
Sampling:
A nonstatistical sample of 19 returns out of 118 returns were selected for Return of Title IV testing.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all withdrawn students that received federal funds and whether the Return of Title IV funds was calculated correctly, and the amount calculated was appropriately remitted back to the Department of Education (DOE).
Views of Responsible Officials:
The Director of Financial Aid agrees with the audit finding. Subsequent to the audit finding, the Director of Financial Aid initiated process changes to review calculations and the return of federal funds for student withdrawals. In addition, and as a result of recent changes in personnel in the Financial Aid Department, the Director of Financial Aid is conducting an overall review of the processes and controls for awards and adjustments in student financial aid.
2024‐002
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Cash Management
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR 676.21(a) The Federal share of the FSEOG awards made by an institution may not exceed 75 percent of the amount of FSEOG awards made by that institution.
34 CFR 675.26(a) The Federal share of FWS compensation paid to a student employed other than by a private for-profit organization, as described in § 675.23, may not exceed 75 percent unless the Secretary approves a higher share under paragraph (a)(2) or (d) of this section.
Condition:
During our review of the cash management associated with the match for FSEOG and FWS, it was discovered that the match required by the College of 25 percent, as noted above the federal share of FSEOG and FWS may not exceed 75 percent of total FSEOG and FWS awards, was not performed and there was no waiver to relieve the college of the match requirement.
Cause:
The College’s existing control procedures for matching the federal funding for FSEOG and FWS reconciling did not detect the error.
Effect:
The drawdown of funds associated with FSEOG and FWS from the Department of Education was over drawn as the College did not perform the match associated with the two programs.
Questioned Costs:
None reported
Sampling:
No sampling was done as the match for the year was not performed.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all FSEOG and FWS drawdowns to ensure that the match is appropriately applied before submitting to the Department of Education.
Views of Responsible Officials:
The Director of Financial Aid and VP of Finance and Business agrees with the audit finding. Subsequent to the audit finding, the VP of Finance and Business initiated process changes to review the drawdowns and submitted a revision of drawdowns to the Department of Education to correct the two program drawdowns as needed. In addition, the trial balance and financial statement amounts were also adjusted to reflect the match for fiscal year 2024. The Director of Financial Aid and VP of Finance and Business will be conducting a review of the processes and controls for FSEOG and FWS closely to ensure this does not occur again.
2024‐001
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Special Tests and Provisions – Return to Title IV
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR section 668.22(e) states that if a student withdraws from classes and has received student financial aid the amount of unearned Title IV assistance must be calculated and returned to the Department of Education.
Condition:
During our review of the Return of Title IV funds, there were five instances out of nineteen in which the Title IV funds to be returned was calculated incorrectly.
Cause:
The College’s existing control procedures for reconciling student withdrawals with amounts returned did not detect the error.
Effect:
The funds required to be returned were not the correct amount to be remitted to the Department of Education.
Questioned Costs:
None reported
Sampling:
A nonstatistical sample of 19 returns out of 118 returns were selected for Return of Title IV testing.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all withdrawn students that received federal funds and whether the Return of Title IV funds was calculated correctly, and the amount calculated was appropriately remitted back to the Department of Education (DOE).
Views of Responsible Officials:
The Director of Financial Aid agrees with the audit finding. Subsequent to the audit finding, the Director of Financial Aid initiated process changes to review calculations and the return of federal funds for student withdrawals. In addition, and as a result of recent changes in personnel in the Financial Aid Department, the Director of Financial Aid is conducting an overall review of the processes and controls for awards and adjustments in student financial aid.
2024‐002
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Cash Management
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR 676.21(a) The Federal share of the FSEOG awards made by an institution may not exceed 75 percent of the amount of FSEOG awards made by that institution.
34 CFR 675.26(a) The Federal share of FWS compensation paid to a student employed other than by a private for-profit organization, as described in § 675.23, may not exceed 75 percent unless the Secretary approves a higher share under paragraph (a)(2) or (d) of this section.
Condition:
During our review of the cash management associated with the match for FSEOG and FWS, it was discovered that the match required by the College of 25 percent, as noted above the federal share of FSEOG and FWS may not exceed 75 percent of total FSEOG and FWS awards, was not performed and there was no waiver to relieve the college of the match requirement.
Cause:
The College’s existing control procedures for matching the federal funding for FSEOG and FWS reconciling did not detect the error.
Effect:
The drawdown of funds associated with FSEOG and FWS from the Department of Education was over drawn as the College did not perform the match associated with the two programs.
Questioned Costs:
None reported
Sampling:
No sampling was done as the match for the year was not performed.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all FSEOG and FWS drawdowns to ensure that the match is appropriately applied before submitting to the Department of Education.
Views of Responsible Officials:
The Director of Financial Aid and VP of Finance and Business agrees with the audit finding. Subsequent to the audit finding, the VP of Finance and Business initiated process changes to review the drawdowns and submitted a revision of drawdowns to the Department of Education to correct the two program drawdowns as needed. In addition, the trial balance and financial statement amounts were also adjusted to reflect the match for fiscal year 2024. The Director of Financial Aid and VP of Finance and Business will be conducting a review of the processes and controls for FSEOG and FWS closely to ensure this does not occur again.
2024‐001
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Special Tests and Provisions – Return to Title IV
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR section 668.22(e) states that if a student withdraws from classes and has received student financial aid the amount of unearned Title IV assistance must be calculated and returned to the Department of Education.
Condition:
During our review of the Return of Title IV funds, there were five instances out of nineteen in which the Title IV funds to be returned was calculated incorrectly.
Cause:
The College’s existing control procedures for reconciling student withdrawals with amounts returned did not detect the error.
Effect:
The funds required to be returned were not the correct amount to be remitted to the Department of Education.
Questioned Costs:
None reported
Sampling:
A nonstatistical sample of 19 returns out of 118 returns were selected for Return of Title IV testing.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all withdrawn students that received federal funds and whether the Return of Title IV funds was calculated correctly, and the amount calculated was appropriately remitted back to the Department of Education (DOE).
Views of Responsible Officials:
The Director of Financial Aid agrees with the audit finding. Subsequent to the audit finding, the Director of Financial Aid initiated process changes to review calculations and the return of federal funds for student withdrawals. In addition, and as a result of recent changes in personnel in the Financial Aid Department, the Director of Financial Aid is conducting an overall review of the processes and controls for awards and adjustments in student financial aid.
2024‐002
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Cash Management
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR 676.21(a) The Federal share of the FSEOG awards made by an institution may not exceed 75 percent of the amount of FSEOG awards made by that institution.
34 CFR 675.26(a) The Federal share of FWS compensation paid to a student employed other than by a private for-profit organization, as described in § 675.23, may not exceed 75 percent unless the Secretary approves a higher share under paragraph (a)(2) or (d) of this section.
Condition:
During our review of the cash management associated with the match for FSEOG and FWS, it was discovered that the match required by the College of 25 percent, as noted above the federal share of FSEOG and FWS may not exceed 75 percent of total FSEOG and FWS awards, was not performed and there was no waiver to relieve the college of the match requirement.
Cause:
The College’s existing control procedures for matching the federal funding for FSEOG and FWS reconciling did not detect the error.
Effect:
The drawdown of funds associated with FSEOG and FWS from the Department of Education was over drawn as the College did not perform the match associated with the two programs.
Questioned Costs:
None reported
Sampling:
No sampling was done as the match for the year was not performed.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all FSEOG and FWS drawdowns to ensure that the match is appropriately applied before submitting to the Department of Education.
Views of Responsible Officials:
The Director of Financial Aid and VP of Finance and Business agrees with the audit finding. Subsequent to the audit finding, the VP of Finance and Business initiated process changes to review the drawdowns and submitted a revision of drawdowns to the Department of Education to correct the two program drawdowns as needed. In addition, the trial balance and financial statement amounts were also adjusted to reflect the match for fiscal year 2024. The Director of Financial Aid and VP of Finance and Business will be conducting a review of the processes and controls for FSEOG and FWS closely to ensure this does not occur again.
2024‐001
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Special Tests and Provisions – Return to Title IV
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR section 668.22(e) states that if a student withdraws from classes and has received student financial aid the amount of unearned Title IV assistance must be calculated and returned to the Department of Education.
Condition:
During our review of the Return of Title IV funds, there were five instances out of nineteen in which the Title IV funds to be returned was calculated incorrectly.
Cause:
The College’s existing control procedures for reconciling student withdrawals with amounts returned did not detect the error.
Effect:
The funds required to be returned were not the correct amount to be remitted to the Department of Education.
Questioned Costs:
None reported
Sampling:
A nonstatistical sample of 19 returns out of 118 returns were selected for Return of Title IV testing.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all withdrawn students that received federal funds and whether the Return of Title IV funds was calculated correctly, and the amount calculated was appropriately remitted back to the Department of Education (DOE).
Views of Responsible Officials:
The Director of Financial Aid agrees with the audit finding. Subsequent to the audit finding, the Director of Financial Aid initiated process changes to review calculations and the return of federal funds for student withdrawals. In addition, and as a result of recent changes in personnel in the Financial Aid Department, the Director of Financial Aid is conducting an overall review of the processes and controls for awards and adjustments in student financial aid.
2024‐002
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Cash Management
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR 676.21(a) The Federal share of the FSEOG awards made by an institution may not exceed 75 percent of the amount of FSEOG awards made by that institution.
34 CFR 675.26(a) The Federal share of FWS compensation paid to a student employed other than by a private for-profit organization, as described in § 675.23, may not exceed 75 percent unless the Secretary approves a higher share under paragraph (a)(2) or (d) of this section.
Condition:
During our review of the cash management associated with the match for FSEOG and FWS, it was discovered that the match required by the College of 25 percent, as noted above the federal share of FSEOG and FWS may not exceed 75 percent of total FSEOG and FWS awards, was not performed and there was no waiver to relieve the college of the match requirement.
Cause:
The College’s existing control procedures for matching the federal funding for FSEOG and FWS reconciling did not detect the error.
Effect:
The drawdown of funds associated with FSEOG and FWS from the Department of Education was over drawn as the College did not perform the match associated with the two programs.
Questioned Costs:
None reported
Sampling:
No sampling was done as the match for the year was not performed.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all FSEOG and FWS drawdowns to ensure that the match is appropriately applied before submitting to the Department of Education.
Views of Responsible Officials:
The Director of Financial Aid and VP of Finance and Business agrees with the audit finding. Subsequent to the audit finding, the VP of Finance and Business initiated process changes to review the drawdowns and submitted a revision of drawdowns to the Department of Education to correct the two program drawdowns as needed. In addition, the trial balance and financial statement amounts were also adjusted to reflect the match for fiscal year 2024. The Director of Financial Aid and VP of Finance and Business will be conducting a review of the processes and controls for FSEOG and FWS closely to ensure this does not occur again.
2024‐001
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Special Tests and Provisions – Return to Title IV
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR section 668.22(e) states that if a student withdraws from classes and has received student financial aid the amount of unearned Title IV assistance must be calculated and returned to the Department of Education.
Condition:
During our review of the Return of Title IV funds, there were five instances out of nineteen in which the Title IV funds to be returned was calculated incorrectly.
Cause:
The College’s existing control procedures for reconciling student withdrawals with amounts returned did not detect the error.
Effect:
The funds required to be returned were not the correct amount to be remitted to the Department of Education.
Questioned Costs:
None reported
Sampling:
A nonstatistical sample of 19 returns out of 118 returns were selected for Return of Title IV testing.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all withdrawn students that received federal funds and whether the Return of Title IV funds was calculated correctly, and the amount calculated was appropriately remitted back to the Department of Education (DOE).
Views of Responsible Officials:
The Director of Financial Aid agrees with the audit finding. Subsequent to the audit finding, the Director of Financial Aid initiated process changes to review calculations and the return of federal funds for student withdrawals. In addition, and as a result of recent changes in personnel in the Financial Aid Department, the Director of Financial Aid is conducting an overall review of the processes and controls for awards and adjustments in student financial aid.
2024‐002
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Cash Management
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR 676.21(a) The Federal share of the FSEOG awards made by an institution may not exceed 75 percent of the amount of FSEOG awards made by that institution.
34 CFR 675.26(a) The Federal share of FWS compensation paid to a student employed other than by a private for-profit organization, as described in § 675.23, may not exceed 75 percent unless the Secretary approves a higher share under paragraph (a)(2) or (d) of this section.
Condition:
During our review of the cash management associated with the match for FSEOG and FWS, it was discovered that the match required by the College of 25 percent, as noted above the federal share of FSEOG and FWS may not exceed 75 percent of total FSEOG and FWS awards, was not performed and there was no waiver to relieve the college of the match requirement.
Cause:
The College’s existing control procedures for matching the federal funding for FSEOG and FWS reconciling did not detect the error.
Effect:
The drawdown of funds associated with FSEOG and FWS from the Department of Education was over drawn as the College did not perform the match associated with the two programs.
Questioned Costs:
None reported
Sampling:
No sampling was done as the match for the year was not performed.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all FSEOG and FWS drawdowns to ensure that the match is appropriately applied before submitting to the Department of Education.
Views of Responsible Officials:
The Director of Financial Aid and VP of Finance and Business agrees with the audit finding. Subsequent to the audit finding, the VP of Finance and Business initiated process changes to review the drawdowns and submitted a revision of drawdowns to the Department of Education to correct the two program drawdowns as needed. In addition, the trial balance and financial statement amounts were also adjusted to reflect the match for fiscal year 2024. The Director of Financial Aid and VP of Finance and Business will be conducting a review of the processes and controls for FSEOG and FWS closely to ensure this does not occur again.