Audit 333176

FY End
2024-05-31
Total Expended
$20.49M
Findings
24
Programs
8
Organization: Louisburg College Inc. (NC)
Year: 2024 Accepted: 2024-12-17

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
515134 2024-002 Significant Deficiency - N
515135 2024-002 Significant Deficiency - N
515136 2024-002 Significant Deficiency - N
515137 2024-002 Significant Deficiency - N
515138 2024-003 Significant Deficiency Yes N
515139 2024-003 Significant Deficiency Yes N
515140 2024-003 Significant Deficiency Yes N
515141 2024-003 Significant Deficiency Yes N
515142 2024-004 Significant Deficiency - N
515143 2024-004 Significant Deficiency - N
515144 2024-004 Significant Deficiency - N
515145 2024-004 Significant Deficiency - N
1091576 2024-002 Significant Deficiency - N
1091577 2024-002 Significant Deficiency - N
1091578 2024-002 Significant Deficiency - N
1091579 2024-002 Significant Deficiency - N
1091580 2024-003 Significant Deficiency Yes N
1091581 2024-003 Significant Deficiency Yes N
1091582 2024-003 Significant Deficiency Yes N
1091583 2024-003 Significant Deficiency Yes N
1091584 2024-004 Significant Deficiency - N
1091585 2024-004 Significant Deficiency - N
1091586 2024-004 Significant Deficiency - N
1091587 2024-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $14.65M Yes 0
84.268 Federal Direct Student Loans $3.72M Yes 3
84.063 Federal Pell Grant Program $1.69M Yes 3
84.425 Education Stabilization Fund $142,354 - 0
84.007 Federal Supplemental Educational Opportunity Grants $84,837 Yes 3
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $83,458 - 0
84.033 Federal Work-Study Program $81,170 Yes 3
64.028 Post-9/11 Veterans Educational Assistance $45,948 - 0

Contacts

Name Title Type
T8K413D9X8K5 Satchel Loftis Auditee
9194973207 Amanda Habich Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal and state awards the federal and state grant activity of Louisburg College, Inc. (the College), and is presented on the modified 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 (Uniform Guidance) and North Carolina General Statute 143C-6-23. Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net position, or cash flows of Louisburg College, Inc. and subsidiary.
Title: State Awards Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The North Carolina Need Based Scholarship Program is a state program having compliance requirements identified as having a direct and material effect on the consolidated financial statements.
Title: Subrecipients Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. During the year ended May 31, 2024, the College provided no federal or state awards to subrecipients.
Title: Loans Outstanding Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The College had a $14,653,937 loan balance outstanding as of May 31, 2024 for ALN 10.766, U.S. Department of Agriculture: Community Facilities Loans and Grants. No expenditures were incurred during the year ended May 31, 2024 for the loan.

Finding Details

2024-002 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Verification Criteria: An institution is required to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. The institution shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition and Context: The College was unable to locate supporting documentation for the verification of student information for 5 students out of 7 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, supporting documentation to support the verification of student’s information was not properly maintained in the student’s file. Effect: The College was out of compliance with the requirement for student verification. This finding raises concerns about the college's compliance with federal verification requirements, potentially resulting in improper disbursement of federal funds. Recommendation: The College should enhance its verification process by establishing a checklist for required documentation, providing training for staff on verification requirements, and implementing a tracking system to monitor outstanding documentation for students selected for verification.
2024-002 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Verification Criteria: An institution is required to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. The institution shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition and Context: The College was unable to locate supporting documentation for the verification of student information for 5 students out of 7 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, supporting documentation to support the verification of student’s information was not properly maintained in the student’s file. Effect: The College was out of compliance with the requirement for student verification. This finding raises concerns about the college's compliance with federal verification requirements, potentially resulting in improper disbursement of federal funds. Recommendation: The College should enhance its verification process by establishing a checklist for required documentation, providing training for staff on verification requirements, and implementing a tracking system to monitor outstanding documentation for students selected for verification.
2024-002 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Verification Criteria: An institution is required to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. The institution shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition and Context: The College was unable to locate supporting documentation for the verification of student information for 5 students out of 7 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, supporting documentation to support the verification of student’s information was not properly maintained in the student’s file. Effect: The College was out of compliance with the requirement for student verification. This finding raises concerns about the college's compliance with federal verification requirements, potentially resulting in improper disbursement of federal funds. Recommendation: The College should enhance its verification process by establishing a checklist for required documentation, providing training for staff on verification requirements, and implementing a tracking system to monitor outstanding documentation for students selected for verification.
2024-002 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Verification Criteria: An institution is required to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. The institution shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition and Context: The College was unable to locate supporting documentation for the verification of student information for 5 students out of 7 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, supporting documentation to support the verification of student’s information was not properly maintained in the student’s file. Effect: The College was out of compliance with the requirement for student verification. This finding raises concerns about the college's compliance with federal verification requirements, potentially resulting in improper disbursement of federal funds. Recommendation: The College should enhance its verification process by establishing a checklist for required documentation, providing training for staff on verification requirements, and implementing a tracking system to monitor outstanding documentation for students selected for verification.
2024-003 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Return of Title IV Funds Criteria: Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Returns by check are late if the check is issued more than 45 days after the institution determined the student withdrew or the date on the canceled check shows the check was endorsed more than 60 days after the date the institution determined that the student withdrew (34 CFR 668.173(b)). Condition and Context: The College failed to return title IV funds to the student within the 45-day time frame for 1 student out of 3 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, a lapse in internal controls occurred related to the timing of the return of title IV funds to students. Effect: The College was out of compliance with the return of title IV funds for students who withdrew within the required 45-day time frame. The late return of Title IV funds may lead to potential non-compliance with federal regulations, exposing the institution to financial liability and affecting the eligibility for future federal funding. Recommendation: The College should establish a more effective withdrawal tracking system to ensure timely identification and processing of withdrawals. Additionally, regular training should be provided to financial aid staff on compliance with Title IV fund return requirements to prevent future occurrences.
2024-003 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Return of Title IV Funds Criteria: Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Returns by check are late if the check is issued more than 45 days after the institution determined the student withdrew or the date on the canceled check shows the check was endorsed more than 60 days after the date the institution determined that the student withdrew (34 CFR 668.173(b)). Condition and Context: The College failed to return title IV funds to the student within the 45-day time frame for 1 student out of 3 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, a lapse in internal controls occurred related to the timing of the return of title IV funds to students. Effect: The College was out of compliance with the return of title IV funds for students who withdrew within the required 45-day time frame. The late return of Title IV funds may lead to potential non-compliance with federal regulations, exposing the institution to financial liability and affecting the eligibility for future federal funding. Recommendation: The College should establish a more effective withdrawal tracking system to ensure timely identification and processing of withdrawals. Additionally, regular training should be provided to financial aid staff on compliance with Title IV fund return requirements to prevent future occurrences.
2024-003 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Return of Title IV Funds Criteria: Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Returns by check are late if the check is issued more than 45 days after the institution determined the student withdrew or the date on the canceled check shows the check was endorsed more than 60 days after the date the institution determined that the student withdrew (34 CFR 668.173(b)). Condition and Context: The College failed to return title IV funds to the student within the 45-day time frame for 1 student out of 3 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, a lapse in internal controls occurred related to the timing of the return of title IV funds to students. Effect: The College was out of compliance with the return of title IV funds for students who withdrew within the required 45-day time frame. The late return of Title IV funds may lead to potential non-compliance with federal regulations, exposing the institution to financial liability and affecting the eligibility for future federal funding. Recommendation: The College should establish a more effective withdrawal tracking system to ensure timely identification and processing of withdrawals. Additionally, regular training should be provided to financial aid staff on compliance with Title IV fund return requirements to prevent future occurrences.
2024-003 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Return of Title IV Funds Criteria: Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Returns by check are late if the check is issued more than 45 days after the institution determined the student withdrew or the date on the canceled check shows the check was endorsed more than 60 days after the date the institution determined that the student withdrew (34 CFR 668.173(b)). Condition and Context: The College failed to return title IV funds to the student within the 45-day time frame for 1 student out of 3 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, a lapse in internal controls occurred related to the timing of the return of title IV funds to students. Effect: The College was out of compliance with the return of title IV funds for students who withdrew within the required 45-day time frame. The late return of Title IV funds may lead to potential non-compliance with federal regulations, exposing the institution to financial liability and affecting the eligibility for future federal funding. Recommendation: The College should establish a more effective withdrawal tracking system to ensure timely identification and processing of withdrawals. Additionally, regular training should be provided to financial aid staff on compliance with Title IV fund return requirements to prevent future occurrences.
2024-004 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Enrollment Reporting Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the NSLDS (National Student Loan Data System) (0MB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). Condition and Context: The College failed to accurately and timely report student status changes to NSLDS for 10 students out of 11 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College, including in the office of the registrar and in the financial aid department, the College did not follow the standardized process for updating enrollment information promptly and lacked effective communication between the registrar and financial aid offices regarding student status changes. Effect: The College was out of compliance with the requirement enrollment reporting of student status changes. Inaccurate enrollment reporting can lead to improper loan servicing, incorrect disbursements, and potential issues for students regarding their loan repayment status. This finding raises compliance concerns and could result in financial liabilities for the institution. Recommendation: The College should implement a robust system for tracking and reporting enrollment changes, including regular training for staff involved in the enrollment process. Additionally, a routine audit of reported data should be conducted to ensure accuracy and compliance with federal regulations.
2024-004 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Enrollment Reporting Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the NSLDS (National Student Loan Data System) (0MB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). Condition and Context: The College failed to accurately and timely report student status changes to NSLDS for 10 students out of 11 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College, including in the office of the registrar and in the financial aid department, the College did not follow the standardized process for updating enrollment information promptly and lacked effective communication between the registrar and financial aid offices regarding student status changes. Effect: The College was out of compliance with the requirement enrollment reporting of student status changes. Inaccurate enrollment reporting can lead to improper loan servicing, incorrect disbursements, and potential issues for students regarding their loan repayment status. This finding raises compliance concerns and could result in financial liabilities for the institution. Recommendation: The College should implement a robust system for tracking and reporting enrollment changes, including regular training for staff involved in the enrollment process. Additionally, a routine audit of reported data should be conducted to ensure accuracy and compliance with federal regulations.
2024-004 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Enrollment Reporting Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the NSLDS (National Student Loan Data System) (0MB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). Condition and Context: The College failed to accurately and timely report student status changes to NSLDS for 10 students out of 11 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College, including in the office of the registrar and in the financial aid department, the College did not follow the standardized process for updating enrollment information promptly and lacked effective communication between the registrar and financial aid offices regarding student status changes. Effect: The College was out of compliance with the requirement enrollment reporting of student status changes. Inaccurate enrollment reporting can lead to improper loan servicing, incorrect disbursements, and potential issues for students regarding their loan repayment status. This finding raises compliance concerns and could result in financial liabilities for the institution. Recommendation: The College should implement a robust system for tracking and reporting enrollment changes, including regular training for staff involved in the enrollment process. Additionally, a routine audit of reported data should be conducted to ensure accuracy and compliance with federal regulations.
2024-004 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Enrollment Reporting Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the NSLDS (National Student Loan Data System) (0MB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). Condition and Context: The College failed to accurately and timely report student status changes to NSLDS for 10 students out of 11 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College, including in the office of the registrar and in the financial aid department, the College did not follow the standardized process for updating enrollment information promptly and lacked effective communication between the registrar and financial aid offices regarding student status changes. Effect: The College was out of compliance with the requirement enrollment reporting of student status changes. Inaccurate enrollment reporting can lead to improper loan servicing, incorrect disbursements, and potential issues for students regarding their loan repayment status. This finding raises compliance concerns and could result in financial liabilities for the institution. Recommendation: The College should implement a robust system for tracking and reporting enrollment changes, including regular training for staff involved in the enrollment process. Additionally, a routine audit of reported data should be conducted to ensure accuracy and compliance with federal regulations.
2024-002 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Verification Criteria: An institution is required to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. The institution shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition and Context: The College was unable to locate supporting documentation for the verification of student information for 5 students out of 7 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, supporting documentation to support the verification of student’s information was not properly maintained in the student’s file. Effect: The College was out of compliance with the requirement for student verification. This finding raises concerns about the college's compliance with federal verification requirements, potentially resulting in improper disbursement of federal funds. Recommendation: The College should enhance its verification process by establishing a checklist for required documentation, providing training for staff on verification requirements, and implementing a tracking system to monitor outstanding documentation for students selected for verification.
2024-002 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Verification Criteria: An institution is required to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. The institution shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition and Context: The College was unable to locate supporting documentation for the verification of student information for 5 students out of 7 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, supporting documentation to support the verification of student’s information was not properly maintained in the student’s file. Effect: The College was out of compliance with the requirement for student verification. This finding raises concerns about the college's compliance with federal verification requirements, potentially resulting in improper disbursement of federal funds. Recommendation: The College should enhance its verification process by establishing a checklist for required documentation, providing training for staff on verification requirements, and implementing a tracking system to monitor outstanding documentation for students selected for verification.
2024-002 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Verification Criteria: An institution is required to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. The institution shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition and Context: The College was unable to locate supporting documentation for the verification of student information for 5 students out of 7 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, supporting documentation to support the verification of student’s information was not properly maintained in the student’s file. Effect: The College was out of compliance with the requirement for student verification. This finding raises concerns about the college's compliance with federal verification requirements, potentially resulting in improper disbursement of federal funds. Recommendation: The College should enhance its verification process by establishing a checklist for required documentation, providing training for staff on verification requirements, and implementing a tracking system to monitor outstanding documentation for students selected for verification.
2024-002 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Verification Criteria: An institution is required to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. The institution shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition and Context: The College was unable to locate supporting documentation for the verification of student information for 5 students out of 7 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, supporting documentation to support the verification of student’s information was not properly maintained in the student’s file. Effect: The College was out of compliance with the requirement for student verification. This finding raises concerns about the college's compliance with federal verification requirements, potentially resulting in improper disbursement of federal funds. Recommendation: The College should enhance its verification process by establishing a checklist for required documentation, providing training for staff on verification requirements, and implementing a tracking system to monitor outstanding documentation for students selected for verification.
2024-003 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Return of Title IV Funds Criteria: Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Returns by check are late if the check is issued more than 45 days after the institution determined the student withdrew or the date on the canceled check shows the check was endorsed more than 60 days after the date the institution determined that the student withdrew (34 CFR 668.173(b)). Condition and Context: The College failed to return title IV funds to the student within the 45-day time frame for 1 student out of 3 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, a lapse in internal controls occurred related to the timing of the return of title IV funds to students. Effect: The College was out of compliance with the return of title IV funds for students who withdrew within the required 45-day time frame. The late return of Title IV funds may lead to potential non-compliance with federal regulations, exposing the institution to financial liability and affecting the eligibility for future federal funding. Recommendation: The College should establish a more effective withdrawal tracking system to ensure timely identification and processing of withdrawals. Additionally, regular training should be provided to financial aid staff on compliance with Title IV fund return requirements to prevent future occurrences.
2024-003 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Return of Title IV Funds Criteria: Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Returns by check are late if the check is issued more than 45 days after the institution determined the student withdrew or the date on the canceled check shows the check was endorsed more than 60 days after the date the institution determined that the student withdrew (34 CFR 668.173(b)). Condition and Context: The College failed to return title IV funds to the student within the 45-day time frame for 1 student out of 3 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, a lapse in internal controls occurred related to the timing of the return of title IV funds to students. Effect: The College was out of compliance with the return of title IV funds for students who withdrew within the required 45-day time frame. The late return of Title IV funds may lead to potential non-compliance with federal regulations, exposing the institution to financial liability and affecting the eligibility for future federal funding. Recommendation: The College should establish a more effective withdrawal tracking system to ensure timely identification and processing of withdrawals. Additionally, regular training should be provided to financial aid staff on compliance with Title IV fund return requirements to prevent future occurrences.
2024-003 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Return of Title IV Funds Criteria: Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Returns by check are late if the check is issued more than 45 days after the institution determined the student withdrew or the date on the canceled check shows the check was endorsed more than 60 days after the date the institution determined that the student withdrew (34 CFR 668.173(b)). Condition and Context: The College failed to return title IV funds to the student within the 45-day time frame for 1 student out of 3 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, a lapse in internal controls occurred related to the timing of the return of title IV funds to students. Effect: The College was out of compliance with the return of title IV funds for students who withdrew within the required 45-day time frame. The late return of Title IV funds may lead to potential non-compliance with federal regulations, exposing the institution to financial liability and affecting the eligibility for future federal funding. Recommendation: The College should establish a more effective withdrawal tracking system to ensure timely identification and processing of withdrawals. Additionally, regular training should be provided to financial aid staff on compliance with Title IV fund return requirements to prevent future occurrences.
2024-003 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Return of Title IV Funds Criteria: Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Returns by check are late if the check is issued more than 45 days after the institution determined the student withdrew or the date on the canceled check shows the check was endorsed more than 60 days after the date the institution determined that the student withdrew (34 CFR 668.173(b)). Condition and Context: The College failed to return title IV funds to the student within the 45-day time frame for 1 student out of 3 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College and in the financial aid department during the year under audit, a lapse in internal controls occurred related to the timing of the return of title IV funds to students. Effect: The College was out of compliance with the return of title IV funds for students who withdrew within the required 45-day time frame. The late return of Title IV funds may lead to potential non-compliance with federal regulations, exposing the institution to financial liability and affecting the eligibility for future federal funding. Recommendation: The College should establish a more effective withdrawal tracking system to ensure timely identification and processing of withdrawals. Additionally, regular training should be provided to financial aid staff on compliance with Title IV fund return requirements to prevent future occurrences.
2024-004 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Enrollment Reporting Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the NSLDS (National Student Loan Data System) (0MB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). Condition and Context: The College failed to accurately and timely report student status changes to NSLDS for 10 students out of 11 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College, including in the office of the registrar and in the financial aid department, the College did not follow the standardized process for updating enrollment information promptly and lacked effective communication between the registrar and financial aid offices regarding student status changes. Effect: The College was out of compliance with the requirement enrollment reporting of student status changes. Inaccurate enrollment reporting can lead to improper loan servicing, incorrect disbursements, and potential issues for students regarding their loan repayment status. This finding raises compliance concerns and could result in financial liabilities for the institution. Recommendation: The College should implement a robust system for tracking and reporting enrollment changes, including regular training for staff involved in the enrollment process. Additionally, a routine audit of reported data should be conducted to ensure accuracy and compliance with federal regulations.
2024-004 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Enrollment Reporting Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the NSLDS (National Student Loan Data System) (0MB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). Condition and Context: The College failed to accurately and timely report student status changes to NSLDS for 10 students out of 11 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College, including in the office of the registrar and in the financial aid department, the College did not follow the standardized process for updating enrollment information promptly and lacked effective communication between the registrar and financial aid offices regarding student status changes. Effect: The College was out of compliance with the requirement enrollment reporting of student status changes. Inaccurate enrollment reporting can lead to improper loan servicing, incorrect disbursements, and potential issues for students regarding their loan repayment status. This finding raises compliance concerns and could result in financial liabilities for the institution. Recommendation: The College should implement a robust system for tracking and reporting enrollment changes, including regular training for staff involved in the enrollment process. Additionally, a routine audit of reported data should be conducted to ensure accuracy and compliance with federal regulations.
2024-004 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Enrollment Reporting Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the NSLDS (National Student Loan Data System) (0MB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). Condition and Context: The College failed to accurately and timely report student status changes to NSLDS for 10 students out of 11 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College, including in the office of the registrar and in the financial aid department, the College did not follow the standardized process for updating enrollment information promptly and lacked effective communication between the registrar and financial aid offices regarding student status changes. Effect: The College was out of compliance with the requirement enrollment reporting of student status changes. Inaccurate enrollment reporting can lead to improper loan servicing, incorrect disbursements, and potential issues for students regarding their loan repayment status. This finding raises compliance concerns and could result in financial liabilities for the institution. Recommendation: The College should implement a robust system for tracking and reporting enrollment changes, including regular training for staff involved in the enrollment process. Additionally, a routine audit of reported data should be conducted to ensure accuracy and compliance with federal regulations.
2024-004 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Enrollment Reporting Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the NSLDS (National Student Loan Data System) (0MB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). Condition and Context: The College failed to accurately and timely report student status changes to NSLDS for 10 students out of 11 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College, including in the office of the registrar and in the financial aid department, the College did not follow the standardized process for updating enrollment information promptly and lacked effective communication between the registrar and financial aid offices regarding student status changes. Effect: The College was out of compliance with the requirement enrollment reporting of student status changes. Inaccurate enrollment reporting can lead to improper loan servicing, incorrect disbursements, and potential issues for students regarding their loan repayment status. This finding raises compliance concerns and could result in financial liabilities for the institution. Recommendation: The College should implement a robust system for tracking and reporting enrollment changes, including regular training for staff involved in the enrollment process. Additionally, a routine audit of reported data should be conducted to ensure accuracy and compliance with federal regulations.