Audit 333481

FY End
2024-08-31
Total Expended
$8.22M
Findings
16
Programs
6
Organization: Vernon College (TX)
Year: 2024 Accepted: 2024-12-18

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
515667 2024-001 Significant Deficiency - N
515668 2024-001 Significant Deficiency - N
515669 2024-001 Significant Deficiency - N
515670 2024-001 Significant Deficiency - N
515671 2024-002 Significant Deficiency - N
515672 2024-002 Significant Deficiency - N
515673 2024-002 Significant Deficiency - N
515674 2024-002 Significant Deficiency - N
1092109 2024-001 Significant Deficiency - N
1092110 2024-001 Significant Deficiency - N
1092111 2024-001 Significant Deficiency - N
1092112 2024-001 Significant Deficiency - N
1092113 2024-002 Significant Deficiency - N
1092114 2024-002 Significant Deficiency - N
1092115 2024-002 Significant Deficiency - N
1092116 2024-002 Significant Deficiency - N

Contacts

Name Title Type
VP4XPKQF9LL3 Mindi Flynn Auditee
9405226291 Jeff Graham Auditor
No contacts on file

Notes to SEFA

Title: Federal Assistance Reconciliation Accounting Policies: The expenditures included in the schedule are reported for the College's fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds which have been expended by the College for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from amounts used in the preparation of the general purpose financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedule. De Minimis Rate Used: N Rate Explanation: Since the College has an agency-approved Indirect Recovery Rate it has elected to not use the 10% de minimis cost rate as permitted in the UG, section 200.414. See the Notes to the SEFA for chart.
Title: Significant accounting policies used in preparing the schedule Accounting Policies: The expenditures included in the schedule are reported for the College's fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds which have been expended by the College for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from amounts used in the preparation of the general purpose financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedule. De Minimis Rate Used: N Rate Explanation: Since the College has an agency-approved Indirect Recovery Rate it has elected to not use the 10% de minimis cost rate as permitted in the UG, section 200.414. The expenditures included in the schedule are reported for the College's fiscal year. Expenditure reports to funding agencies areprepared on the award period basis. The expenditures reported above represent funds which have been expended by the Collegefor the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of theend of the fiscal year. Some amounts reported in the schedule may differ from amounts used in the preparation of the generalpurpose financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitationsand restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in thepreparation of the schedule. Since the College has an agency-approved Indirect Recovery Rate it has elected to not use the 10%de minimis cost rate as permitted in the UG, section 200.414.
Title: Student Loans Processed and Administrative Recovery Accounting Policies: The expenditures included in the schedule are reported for the College's fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds which have been expended by the College for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from amounts used in the preparation of the general purpose financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedule. De Minimis Rate Used: N Rate Explanation: Since the College has an agency-approved Indirect Recovery Rate it has elected to not use the 10% de minimis cost rate as permitted in the UG, section 200.414. See the Notes to the SEFA for chart.
Title: Pass through amounts are identified in the schedule Accounting Policies: The expenditures included in the schedule are reported for the College's fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds which have been expended by the College for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from amounts used in the preparation of the general purpose financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedule. De Minimis Rate Used: N Rate Explanation: Since the College has an agency-approved Indirect Recovery Rate it has elected to not use the 10% de minimis cost rate as permitted in the UG, section 200.414. None

Finding Details

Criteria: In accordance with CFR section 685.309(b)(2) "Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a halftime basis for the period for which the loan was intended." Condition: We reviewed a sample of 62 students who received financial aid and had enrollment status changes during the fiscal year. Of the 62 students tested, 24 students did not have timely or proper status changes reported to the NSLDS. 11 of which have not been reported as withdrawn at all. Population and Sample Size: Number Dollars Questioned Cost Population 2,167 $ N/A $ N/A Sample 62 N/A N/A Not in compliance 24 N/A None Effect: A student's enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies all of which are negatively impacted by inaccurate and late reporting. Cause: The College changed software systems in fiscal year 2024. Due to this change in systems, enrollment reports submitted to the NSLDS no longer contained any students who had withdrawn. The reports that were submitted showed all withdrawn students as still enrolled until the following semester when they no longer showed up as a current student. The college failed to review the reports prior to submission to the NSLDS to ensure withdrawn students were appropriately caught, resulting in enrollment statuses for students not being reported in a timely manner. Recommendation: We recommend that the college work with Ellucian Colleague, the new software system, to update the system settings to track enrollment changes for students. We recommend management develop a report to generate that can be uploaded to the NSLDS with accurate enrollment statuses, as well as create an internal process of review to ensure that the reports are accurate before they are submitted to the NSLDS.
Criteria: In accordance with CFR section 685.309(b)(2) "Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a halftime basis for the period for which the loan was intended." Condition: We reviewed a sample of 62 students who received financial aid and had enrollment status changes during the fiscal year. Of the 62 students tested, 24 students did not have timely or proper status changes reported to the NSLDS. 11 of which have not been reported as withdrawn at all. Population and Sample Size: Number Dollars Questioned Cost Population 2,167 $ N/A $ N/A Sample 62 N/A N/A Not in compliance 24 N/A None Effect: A student's enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies all of which are negatively impacted by inaccurate and late reporting. Cause: The College changed software systems in fiscal year 2024. Due to this change in systems, enrollment reports submitted to the NSLDS no longer contained any students who had withdrawn. The reports that were submitted showed all withdrawn students as still enrolled until the following semester when they no longer showed up as a current student. The college failed to review the reports prior to submission to the NSLDS to ensure withdrawn students were appropriately caught, resulting in enrollment statuses for students not being reported in a timely manner. Recommendation: We recommend that the college work with Ellucian Colleague, the new software system, to update the system settings to track enrollment changes for students. We recommend management develop a report to generate that can be uploaded to the NSLDS with accurate enrollment statuses, as well as create an internal process of review to ensure that the reports are accurate before they are submitted to the NSLDS.
Criteria: In accordance with CFR section 685.309(b)(2) "Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a halftime basis for the period for which the loan was intended." Condition: We reviewed a sample of 62 students who received financial aid and had enrollment status changes during the fiscal year. Of the 62 students tested, 24 students did not have timely or proper status changes reported to the NSLDS. 11 of which have not been reported as withdrawn at all. Population and Sample Size: Number Dollars Questioned Cost Population 2,167 $ N/A $ N/A Sample 62 N/A N/A Not in compliance 24 N/A None Effect: A student's enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies all of which are negatively impacted by inaccurate and late reporting. Cause: The College changed software systems in fiscal year 2024. Due to this change in systems, enrollment reports submitted to the NSLDS no longer contained any students who had withdrawn. The reports that were submitted showed all withdrawn students as still enrolled until the following semester when they no longer showed up as a current student. The college failed to review the reports prior to submission to the NSLDS to ensure withdrawn students were appropriately caught, resulting in enrollment statuses for students not being reported in a timely manner. Recommendation: We recommend that the college work with Ellucian Colleague, the new software system, to update the system settings to track enrollment changes for students. We recommend management develop a report to generate that can be uploaded to the NSLDS with accurate enrollment statuses, as well as create an internal process of review to ensure that the reports are accurate before they are submitted to the NSLDS.
Criteria: In accordance with CFR section 685.309(b)(2) "Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a halftime basis for the period for which the loan was intended." Condition: We reviewed a sample of 62 students who received financial aid and had enrollment status changes during the fiscal year. Of the 62 students tested, 24 students did not have timely or proper status changes reported to the NSLDS. 11 of which have not been reported as withdrawn at all. Population and Sample Size: Number Dollars Questioned Cost Population 2,167 $ N/A $ N/A Sample 62 N/A N/A Not in compliance 24 N/A None Effect: A student's enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies all of which are negatively impacted by inaccurate and late reporting. Cause: The College changed software systems in fiscal year 2024. Due to this change in systems, enrollment reports submitted to the NSLDS no longer contained any students who had withdrawn. The reports that were submitted showed all withdrawn students as still enrolled until the following semester when they no longer showed up as a current student. The college failed to review the reports prior to submission to the NSLDS to ensure withdrawn students were appropriately caught, resulting in enrollment statuses for students not being reported in a timely manner. Recommendation: We recommend that the college work with Ellucian Colleague, the new software system, to update the system settings to track enrollment changes for students. We recommend management develop a report to generate that can be uploaded to the NSLDS with accurate enrollment statuses, as well as create an internal process of review to ensure that the reports are accurate before they are submitted to the NSLDS.
Criteria: In accordance with CFR sections 34 CFR § 668.164 and 34 CFR § 690.63, "Title IV funds, including Pell Grants, must be disbursed in a manner that aligns with the start of each academic term, ensuring that students have timely access to funds for educational expenses. Institutions are required to handle Pell Grant disbursements promptly to support students’ needs within the academic term. Payments are distributed based on specific payment periods, typically aligned with semesters, quarters, or other designated terms. Funds must be available within the designated academic period to meet the financial needs of students effectively." Condition: We reviewed a sample of 40 students who received financial aid and had enrollment status changes during the fiscal year. Of the 40 students tested, one student did not receive his Pell payment for the Fall 2023 term. The student did not receive his Pell payment until the end of the fall academic period resulting in a missed disbursement on behalf of the student. Disbursement was made later in the same fiscal year during a later term. Population and Sample Size: Number Dollars Questioned Cost Population 1,907 $ N/A $ N/A Sample 40 N/A N/A Not in compliance 1 N/A None Effect: The institution may be required to return funds to the Department of Education. This situation can create financial challenges for the institution and impact students who may no longer have access to those funds. Students may experience financial hardship if Pell Grants or other Title IV funds are not disbursed on time, leading to difficulties in paying tuition, fees, and other educational expenses. Such delays can potentially affect their academic performance or ability to continue their studies. Additionally, if an institution consistently fails to comply with federal regulations, it risks losing its eligibility to participate in federal financial aid programs, severely limiting the financial aid options available to its students. Cause: The college received the student’s 2023-24 ISIR on January 2, 2024, after the end of the fall 2023 semester. The student’s fall aid was not paid out as the payment process at that time was only run for the Spring 2024 semester. The college found that the student’s fall aid did not disburse during the summer of 2024 and disbursed the aid the student was eligible to receive for the fall semester. Recommendation: We recommend that the college create an internal process of review to ensure that financial aid awards are disbursed in the semester that they are awarded.
Criteria: In accordance with CFR sections 34 CFR § 668.164 and 34 CFR § 690.63, "Title IV funds, including Pell Grants, must be disbursed in a manner that aligns with the start of each academic term, ensuring that students have timely access to funds for educational expenses. Institutions are required to handle Pell Grant disbursements promptly to support students’ needs within the academic term. Payments are distributed based on specific payment periods, typically aligned with semesters, quarters, or other designated terms. Funds must be available within the designated academic period to meet the financial needs of students effectively." Condition: We reviewed a sample of 40 students who received financial aid and had enrollment status changes during the fiscal year. Of the 40 students tested, one student did not receive his Pell payment for the Fall 2023 term. The student did not receive his Pell payment until the end of the fall academic period resulting in a missed disbursement on behalf of the student. Disbursement was made later in the same fiscal year during a later term. Population and Sample Size: Number Dollars Questioned Cost Population 1,907 $ N/A $ N/A Sample 40 N/A N/A Not in compliance 1 N/A None Effect: The institution may be required to return funds to the Department of Education. This situation can create financial challenges for the institution and impact students who may no longer have access to those funds. Students may experience financial hardship if Pell Grants or other Title IV funds are not disbursed on time, leading to difficulties in paying tuition, fees, and other educational expenses. Such delays can potentially affect their academic performance or ability to continue their studies. Additionally, if an institution consistently fails to comply with federal regulations, it risks losing its eligibility to participate in federal financial aid programs, severely limiting the financial aid options available to its students. Cause: The college received the student’s 2023-24 ISIR on January 2, 2024, after the end of the fall 2023 semester. The student’s fall aid was not paid out as the payment process at that time was only run for the Spring 2024 semester. The college found that the student’s fall aid did not disburse during the summer of 2024 and disbursed the aid the student was eligible to receive for the fall semester. Recommendation: We recommend that the college create an internal process of review to ensure that financial aid awards are disbursed in the semester that they are awarded.
Criteria: In accordance with CFR sections 34 CFR § 668.164 and 34 CFR § 690.63, "Title IV funds, including Pell Grants, must be disbursed in a manner that aligns with the start of each academic term, ensuring that students have timely access to funds for educational expenses. Institutions are required to handle Pell Grant disbursements promptly to support students’ needs within the academic term. Payments are distributed based on specific payment periods, typically aligned with semesters, quarters, or other designated terms. Funds must be available within the designated academic period to meet the financial needs of students effectively." Condition: We reviewed a sample of 40 students who received financial aid and had enrollment status changes during the fiscal year. Of the 40 students tested, one student did not receive his Pell payment for the Fall 2023 term. The student did not receive his Pell payment until the end of the fall academic period resulting in a missed disbursement on behalf of the student. Disbursement was made later in the same fiscal year during a later term. Population and Sample Size: Number Dollars Questioned Cost Population 1,907 $ N/A $ N/A Sample 40 N/A N/A Not in compliance 1 N/A None Effect: The institution may be required to return funds to the Department of Education. This situation can create financial challenges for the institution and impact students who may no longer have access to those funds. Students may experience financial hardship if Pell Grants or other Title IV funds are not disbursed on time, leading to difficulties in paying tuition, fees, and other educational expenses. Such delays can potentially affect their academic performance or ability to continue their studies. Additionally, if an institution consistently fails to comply with federal regulations, it risks losing its eligibility to participate in federal financial aid programs, severely limiting the financial aid options available to its students. Cause: The college received the student’s 2023-24 ISIR on January 2, 2024, after the end of the fall 2023 semester. The student’s fall aid was not paid out as the payment process at that time was only run for the Spring 2024 semester. The college found that the student’s fall aid did not disburse during the summer of 2024 and disbursed the aid the student was eligible to receive for the fall semester. Recommendation: We recommend that the college create an internal process of review to ensure that financial aid awards are disbursed in the semester that they are awarded.
Criteria: In accordance with CFR sections 34 CFR § 668.164 and 34 CFR § 690.63, "Title IV funds, including Pell Grants, must be disbursed in a manner that aligns with the start of each academic term, ensuring that students have timely access to funds for educational expenses. Institutions are required to handle Pell Grant disbursements promptly to support students’ needs within the academic term. Payments are distributed based on specific payment periods, typically aligned with semesters, quarters, or other designated terms. Funds must be available within the designated academic period to meet the financial needs of students effectively." Condition: We reviewed a sample of 40 students who received financial aid and had enrollment status changes during the fiscal year. Of the 40 students tested, one student did not receive his Pell payment for the Fall 2023 term. The student did not receive his Pell payment until the end of the fall academic period resulting in a missed disbursement on behalf of the student. Disbursement was made later in the same fiscal year during a later term. Population and Sample Size: Number Dollars Questioned Cost Population 1,907 $ N/A $ N/A Sample 40 N/A N/A Not in compliance 1 N/A None Effect: The institution may be required to return funds to the Department of Education. This situation can create financial challenges for the institution and impact students who may no longer have access to those funds. Students may experience financial hardship if Pell Grants or other Title IV funds are not disbursed on time, leading to difficulties in paying tuition, fees, and other educational expenses. Such delays can potentially affect their academic performance or ability to continue their studies. Additionally, if an institution consistently fails to comply with federal regulations, it risks losing its eligibility to participate in federal financial aid programs, severely limiting the financial aid options available to its students. Cause: The college received the student’s 2023-24 ISIR on January 2, 2024, after the end of the fall 2023 semester. The student’s fall aid was not paid out as the payment process at that time was only run for the Spring 2024 semester. The college found that the student’s fall aid did not disburse during the summer of 2024 and disbursed the aid the student was eligible to receive for the fall semester. Recommendation: We recommend that the college create an internal process of review to ensure that financial aid awards are disbursed in the semester that they are awarded.
Criteria: In accordance with CFR section 685.309(b)(2) "Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a halftime basis for the period for which the loan was intended." Condition: We reviewed a sample of 62 students who received financial aid and had enrollment status changes during the fiscal year. Of the 62 students tested, 24 students did not have timely or proper status changes reported to the NSLDS. 11 of which have not been reported as withdrawn at all. Population and Sample Size: Number Dollars Questioned Cost Population 2,167 $ N/A $ N/A Sample 62 N/A N/A Not in compliance 24 N/A None Effect: A student's enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies all of which are negatively impacted by inaccurate and late reporting. Cause: The College changed software systems in fiscal year 2024. Due to this change in systems, enrollment reports submitted to the NSLDS no longer contained any students who had withdrawn. The reports that were submitted showed all withdrawn students as still enrolled until the following semester when they no longer showed up as a current student. The college failed to review the reports prior to submission to the NSLDS to ensure withdrawn students were appropriately caught, resulting in enrollment statuses for students not being reported in a timely manner. Recommendation: We recommend that the college work with Ellucian Colleague, the new software system, to update the system settings to track enrollment changes for students. We recommend management develop a report to generate that can be uploaded to the NSLDS with accurate enrollment statuses, as well as create an internal process of review to ensure that the reports are accurate before they are submitted to the NSLDS.
Criteria: In accordance with CFR section 685.309(b)(2) "Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a halftime basis for the period for which the loan was intended." Condition: We reviewed a sample of 62 students who received financial aid and had enrollment status changes during the fiscal year. Of the 62 students tested, 24 students did not have timely or proper status changes reported to the NSLDS. 11 of which have not been reported as withdrawn at all. Population and Sample Size: Number Dollars Questioned Cost Population 2,167 $ N/A $ N/A Sample 62 N/A N/A Not in compliance 24 N/A None Effect: A student's enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies all of which are negatively impacted by inaccurate and late reporting. Cause: The College changed software systems in fiscal year 2024. Due to this change in systems, enrollment reports submitted to the NSLDS no longer contained any students who had withdrawn. The reports that were submitted showed all withdrawn students as still enrolled until the following semester when they no longer showed up as a current student. The college failed to review the reports prior to submission to the NSLDS to ensure withdrawn students were appropriately caught, resulting in enrollment statuses for students not being reported in a timely manner. Recommendation: We recommend that the college work with Ellucian Colleague, the new software system, to update the system settings to track enrollment changes for students. We recommend management develop a report to generate that can be uploaded to the NSLDS with accurate enrollment statuses, as well as create an internal process of review to ensure that the reports are accurate before they are submitted to the NSLDS.
Criteria: In accordance with CFR section 685.309(b)(2) "Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a halftime basis for the period for which the loan was intended." Condition: We reviewed a sample of 62 students who received financial aid and had enrollment status changes during the fiscal year. Of the 62 students tested, 24 students did not have timely or proper status changes reported to the NSLDS. 11 of which have not been reported as withdrawn at all. Population and Sample Size: Number Dollars Questioned Cost Population 2,167 $ N/A $ N/A Sample 62 N/A N/A Not in compliance 24 N/A None Effect: A student's enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies all of which are negatively impacted by inaccurate and late reporting. Cause: The College changed software systems in fiscal year 2024. Due to this change in systems, enrollment reports submitted to the NSLDS no longer contained any students who had withdrawn. The reports that were submitted showed all withdrawn students as still enrolled until the following semester when they no longer showed up as a current student. The college failed to review the reports prior to submission to the NSLDS to ensure withdrawn students were appropriately caught, resulting in enrollment statuses for students not being reported in a timely manner. Recommendation: We recommend that the college work with Ellucian Colleague, the new software system, to update the system settings to track enrollment changes for students. We recommend management develop a report to generate that can be uploaded to the NSLDS with accurate enrollment statuses, as well as create an internal process of review to ensure that the reports are accurate before they are submitted to the NSLDS.
Criteria: In accordance with CFR section 685.309(b)(2) "Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a halftime basis for the period for which the loan was intended." Condition: We reviewed a sample of 62 students who received financial aid and had enrollment status changes during the fiscal year. Of the 62 students tested, 24 students did not have timely or proper status changes reported to the NSLDS. 11 of which have not been reported as withdrawn at all. Population and Sample Size: Number Dollars Questioned Cost Population 2,167 $ N/A $ N/A Sample 62 N/A N/A Not in compliance 24 N/A None Effect: A student's enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies all of which are negatively impacted by inaccurate and late reporting. Cause: The College changed software systems in fiscal year 2024. Due to this change in systems, enrollment reports submitted to the NSLDS no longer contained any students who had withdrawn. The reports that were submitted showed all withdrawn students as still enrolled until the following semester when they no longer showed up as a current student. The college failed to review the reports prior to submission to the NSLDS to ensure withdrawn students were appropriately caught, resulting in enrollment statuses for students not being reported in a timely manner. Recommendation: We recommend that the college work with Ellucian Colleague, the new software system, to update the system settings to track enrollment changes for students. We recommend management develop a report to generate that can be uploaded to the NSLDS with accurate enrollment statuses, as well as create an internal process of review to ensure that the reports are accurate before they are submitted to the NSLDS.
Criteria: In accordance with CFR sections 34 CFR § 668.164 and 34 CFR § 690.63, "Title IV funds, including Pell Grants, must be disbursed in a manner that aligns with the start of each academic term, ensuring that students have timely access to funds for educational expenses. Institutions are required to handle Pell Grant disbursements promptly to support students’ needs within the academic term. Payments are distributed based on specific payment periods, typically aligned with semesters, quarters, or other designated terms. Funds must be available within the designated academic period to meet the financial needs of students effectively." Condition: We reviewed a sample of 40 students who received financial aid and had enrollment status changes during the fiscal year. Of the 40 students tested, one student did not receive his Pell payment for the Fall 2023 term. The student did not receive his Pell payment until the end of the fall academic period resulting in a missed disbursement on behalf of the student. Disbursement was made later in the same fiscal year during a later term. Population and Sample Size: Number Dollars Questioned Cost Population 1,907 $ N/A $ N/A Sample 40 N/A N/A Not in compliance 1 N/A None Effect: The institution may be required to return funds to the Department of Education. This situation can create financial challenges for the institution and impact students who may no longer have access to those funds. Students may experience financial hardship if Pell Grants or other Title IV funds are not disbursed on time, leading to difficulties in paying tuition, fees, and other educational expenses. Such delays can potentially affect their academic performance or ability to continue their studies. Additionally, if an institution consistently fails to comply with federal regulations, it risks losing its eligibility to participate in federal financial aid programs, severely limiting the financial aid options available to its students. Cause: The college received the student’s 2023-24 ISIR on January 2, 2024, after the end of the fall 2023 semester. The student’s fall aid was not paid out as the payment process at that time was only run for the Spring 2024 semester. The college found that the student’s fall aid did not disburse during the summer of 2024 and disbursed the aid the student was eligible to receive for the fall semester. Recommendation: We recommend that the college create an internal process of review to ensure that financial aid awards are disbursed in the semester that they are awarded.
Criteria: In accordance with CFR sections 34 CFR § 668.164 and 34 CFR § 690.63, "Title IV funds, including Pell Grants, must be disbursed in a manner that aligns with the start of each academic term, ensuring that students have timely access to funds for educational expenses. Institutions are required to handle Pell Grant disbursements promptly to support students’ needs within the academic term. Payments are distributed based on specific payment periods, typically aligned with semesters, quarters, or other designated terms. Funds must be available within the designated academic period to meet the financial needs of students effectively." Condition: We reviewed a sample of 40 students who received financial aid and had enrollment status changes during the fiscal year. Of the 40 students tested, one student did not receive his Pell payment for the Fall 2023 term. The student did not receive his Pell payment until the end of the fall academic period resulting in a missed disbursement on behalf of the student. Disbursement was made later in the same fiscal year during a later term. Population and Sample Size: Number Dollars Questioned Cost Population 1,907 $ N/A $ N/A Sample 40 N/A N/A Not in compliance 1 N/A None Effect: The institution may be required to return funds to the Department of Education. This situation can create financial challenges for the institution and impact students who may no longer have access to those funds. Students may experience financial hardship if Pell Grants or other Title IV funds are not disbursed on time, leading to difficulties in paying tuition, fees, and other educational expenses. Such delays can potentially affect their academic performance or ability to continue their studies. Additionally, if an institution consistently fails to comply with federal regulations, it risks losing its eligibility to participate in federal financial aid programs, severely limiting the financial aid options available to its students. Cause: The college received the student’s 2023-24 ISIR on January 2, 2024, after the end of the fall 2023 semester. The student’s fall aid was not paid out as the payment process at that time was only run for the Spring 2024 semester. The college found that the student’s fall aid did not disburse during the summer of 2024 and disbursed the aid the student was eligible to receive for the fall semester. Recommendation: We recommend that the college create an internal process of review to ensure that financial aid awards are disbursed in the semester that they are awarded.
Criteria: In accordance with CFR sections 34 CFR § 668.164 and 34 CFR § 690.63, "Title IV funds, including Pell Grants, must be disbursed in a manner that aligns with the start of each academic term, ensuring that students have timely access to funds for educational expenses. Institutions are required to handle Pell Grant disbursements promptly to support students’ needs within the academic term. Payments are distributed based on specific payment periods, typically aligned with semesters, quarters, or other designated terms. Funds must be available within the designated academic period to meet the financial needs of students effectively." Condition: We reviewed a sample of 40 students who received financial aid and had enrollment status changes during the fiscal year. Of the 40 students tested, one student did not receive his Pell payment for the Fall 2023 term. The student did not receive his Pell payment until the end of the fall academic period resulting in a missed disbursement on behalf of the student. Disbursement was made later in the same fiscal year during a later term. Population and Sample Size: Number Dollars Questioned Cost Population 1,907 $ N/A $ N/A Sample 40 N/A N/A Not in compliance 1 N/A None Effect: The institution may be required to return funds to the Department of Education. This situation can create financial challenges for the institution and impact students who may no longer have access to those funds. Students may experience financial hardship if Pell Grants or other Title IV funds are not disbursed on time, leading to difficulties in paying tuition, fees, and other educational expenses. Such delays can potentially affect their academic performance or ability to continue their studies. Additionally, if an institution consistently fails to comply with federal regulations, it risks losing its eligibility to participate in federal financial aid programs, severely limiting the financial aid options available to its students. Cause: The college received the student’s 2023-24 ISIR on January 2, 2024, after the end of the fall 2023 semester. The student’s fall aid was not paid out as the payment process at that time was only run for the Spring 2024 semester. The college found that the student’s fall aid did not disburse during the summer of 2024 and disbursed the aid the student was eligible to receive for the fall semester. Recommendation: We recommend that the college create an internal process of review to ensure that financial aid awards are disbursed in the semester that they are awarded.
Criteria: In accordance with CFR sections 34 CFR § 668.164 and 34 CFR § 690.63, "Title IV funds, including Pell Grants, must be disbursed in a manner that aligns with the start of each academic term, ensuring that students have timely access to funds for educational expenses. Institutions are required to handle Pell Grant disbursements promptly to support students’ needs within the academic term. Payments are distributed based on specific payment periods, typically aligned with semesters, quarters, or other designated terms. Funds must be available within the designated academic period to meet the financial needs of students effectively." Condition: We reviewed a sample of 40 students who received financial aid and had enrollment status changes during the fiscal year. Of the 40 students tested, one student did not receive his Pell payment for the Fall 2023 term. The student did not receive his Pell payment until the end of the fall academic period resulting in a missed disbursement on behalf of the student. Disbursement was made later in the same fiscal year during a later term. Population and Sample Size: Number Dollars Questioned Cost Population 1,907 $ N/A $ N/A Sample 40 N/A N/A Not in compliance 1 N/A None Effect: The institution may be required to return funds to the Department of Education. This situation can create financial challenges for the institution and impact students who may no longer have access to those funds. Students may experience financial hardship if Pell Grants or other Title IV funds are not disbursed on time, leading to difficulties in paying tuition, fees, and other educational expenses. Such delays can potentially affect their academic performance or ability to continue their studies. Additionally, if an institution consistently fails to comply with federal regulations, it risks losing its eligibility to participate in federal financial aid programs, severely limiting the financial aid options available to its students. Cause: The college received the student’s 2023-24 ISIR on January 2, 2024, after the end of the fall 2023 semester. The student’s fall aid was not paid out as the payment process at that time was only run for the Spring 2024 semester. The college found that the student’s fall aid did not disburse during the summer of 2024 and disbursed the aid the student was eligible to receive for the fall semester. Recommendation: We recommend that the college create an internal process of review to ensure that financial aid awards are disbursed in the semester that they are awarded.