Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.
FINDING 2024-003 – Federal Direct Loan Eligibility
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Direct Student Loan Program
ALN and Program Expenditures: 84.268 ($709,913)
Award Number: P268K243315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: N/A
Condition Found:
The amount of subsidized Federal Direct Loans awarded was incorrect for one of the twelve students in our sample that received Federal Direct Loans. In addition, the student was eligible for additional unsubsidized funds.
Criteria:
The annual subsidized Federal Direct Loan limit is $3,500 for freshmen, $4,500 for sophomores, and $5,500 for juniors and seniors. For students who are considered independent for financial aid purposes the amount of unsubsidized Federal Direct loans are $6,000 for freshman and sophomores, and $7,000 for junior and seniors
Cause:
The student had several transfer credits that were not considered when determining the grade-level of the student for Federal Direct Loan awarding purposes.
Possible Asserted Effect:
The student in question was eligible to receive a $5,500 subsidized Federal Direct Loan but was only offered $4,500. In addition, the student in question was eligible to receive $7,000 in unsubsidized Federal Direct Loan but was only offered $6,000.
Repeat Finding:
There was not a similar finding for the year ended June 30, 2023.
Statistical Sampling:
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation:
An additional $1,000 of subsidized and unsubsidized Federal Direct Loan funds could be offered to the student. If the student declines the additional funds, $1,000 of the unsubsidized loan should be reclassified as a subsidized loan. Procedures should be improved to ensure that all eligible credit hours are included when determining subsidized loan eligibility.
Management Response:
The Interim Student Financial Aid Director has requested a repackage of aid by the third-party financial aid administrator. Procedures will be improved to ensure that credit hours are reviewed before awarding aid.
FINDING 2024-004 – Title IV Aid Not Returned
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Direct Student Loan Program
ALN and Program Expenditures: 84.268 ($709,913)
Award Number: P268K243315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $3,711
Condition Found:
A student requested that the University return $3,711 of unsubsidized Federal Direct Loan funds to the lender in December 2023. The University has yet to return the funds.
Criteria:
The University is required to notify students of the process to return or deny a loan disbursement at the time the disbursement is made. The student in question followed the procedures within the required timeframe.
Cause:
All of the steps were not completed in the return process. While COD no longer shows the loan disbursement as outstanding, NSLDS still lists the disbursement as outstanding with a December 2023 disbursement date, and the funds were never removed from the student’s account.
Possible Asserted Effect:
$3,711 of unsubsidized Federal Direct Loan funds should be returned.
Repeat Finding:
There was not a similar finding in the prior year.
Statistical Sampling:
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation:
We recommend the University work with the third-party administrator to return the $3,711 as soon as possible. Procedures should be improved to ensure that funds are being returned timely.
Management Response:
The Interim Financial Aid Director will work with the third-party administrator to return the $3,711. The student’s account and NSLDS will be updated. Procedures will be improved to ensure that funds are returned timely.
FINDING 2024-005– Aid Not Disbursed
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Direct Student Loan Program
Federal Pell Grant Program
ALN and Program Expenditures: 84.268 ($709,913)
84.063 ($487,504)
Award Number: P268K243315
P063P233315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $2,722(84.268)
$1,023(84.063)
Condition Found:
The second financial aid disbursement was not made to one of the twenty students in our sample. The student in question was eligible to receive $1,023 of Federal Pell Grant funds, $1,732 of subsidized Federal Direct Loan funds, and $990 of unsubsidized Federal Direct Loan Funds.
Criteria:
Title IV aid should be made in two disbursements. Typically, there is one disbursement per academic period or semester as in the case of Randall University.
Cause:
The disbursements for the student in question were overlooked.
Possible Asserted Effect:
The student did not receive $1,023 of Federal Pell Grant funds, $1,732 of subsidized Federal Direct Loan funds, and $990 of unsubsidized Federal Direct Loan Funds that the student was eligible to receive.
Repeat Finding:
There was not a similar finding in the prior year.
Recommendation:
The University should disburse the aid to the student in question. Checks and balances should be created to ensure that aid is awarded and requested for all eligible students.
Management Response:
The University is on the HCM2 method for disbursing aid. The funds in question will be posted to the student’s account. The University will request the funds from the Department of Education when the next aid batch is submitted.
Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.
FINDING 2024-002– R2T4 Calculation
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Pell Grant Program
ALN and Program Expenditures: 84.063 ($487,504)
Award Number: P063P233315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $1,574
Condition Found:
The R2T4 was calculated correctly, but the Title IV funds were not returned timely for one of the twenty students in the compliance testing sample.
Criteria:
Per the Student Financial Aid Handbook Volume 5, Chapter 2, “a school must return unearned funds for which it is responsible as soon as possible but no later than 45 days after the date of determination of a student’s withdrawal.”
Cause:
The financial aid director did not realize the funds had not been returned.
Possible Asserted Effect:
$1,547 of Pell Grant funds have not been returned to the Department of Education.
Repeat Finding:
See Finding 2023-002 for a similar finding the prior year.
Recommendation:
$1,547 of Federal Pell Grant funds should be returned to the Department of Education. Procedures should be improved to ensure that funds are returned to the Department of Education timely after an R2T4 is completed.
Management Response:
Management agrees that the funds were not returned after the R2T4 was completed. The Interim Director of Financial Aid has submitted a request to the University’s third party servicer to return the funds.
FINDING 2024-005– Aid Not Disbursed
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Direct Student Loan Program
Federal Pell Grant Program
ALN and Program Expenditures: 84.268 ($709,913)
84.063 ($487,504)
Award Number: P268K243315
P063P233315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $2,722(84.268)
$1,023(84.063)
Condition Found:
The second financial aid disbursement was not made to one of the twenty students in our sample. The student in question was eligible to receive $1,023 of Federal Pell Grant funds, $1,732 of subsidized Federal Direct Loan funds, and $990 of unsubsidized Federal Direct Loan Funds.
Criteria:
Title IV aid should be made in two disbursements. Typically, there is one disbursement per academic period or semester as in the case of Randall University.
Cause:
The disbursements for the student in question were overlooked.
Possible Asserted Effect:
The student did not receive $1,023 of Federal Pell Grant funds, $1,732 of subsidized Federal Direct Loan funds, and $990 of unsubsidized Federal Direct Loan Funds that the student was eligible to receive.
Repeat Finding:
There was not a similar finding in the prior year.
Recommendation:
The University should disburse the aid to the student in question. Checks and balances should be created to ensure that aid is awarded and requested for all eligible students.
Management Response:
The University is on the HCM2 method for disbursing aid. The funds in question will be posted to the student’s account. The University will request the funds from the Department of Education when the next aid batch is submitted.
Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.
Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.
Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.
Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.
FINDING 2024-003 – Federal Direct Loan Eligibility
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Direct Student Loan Program
ALN and Program Expenditures: 84.268 ($709,913)
Award Number: P268K243315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: N/A
Condition Found:
The amount of subsidized Federal Direct Loans awarded was incorrect for one of the twelve students in our sample that received Federal Direct Loans. In addition, the student was eligible for additional unsubsidized funds.
Criteria:
The annual subsidized Federal Direct Loan limit is $3,500 for freshmen, $4,500 for sophomores, and $5,500 for juniors and seniors. For students who are considered independent for financial aid purposes the amount of unsubsidized Federal Direct loans are $6,000 for freshman and sophomores, and $7,000 for junior and seniors
Cause:
The student had several transfer credits that were not considered when determining the grade-level of the student for Federal Direct Loan awarding purposes.
Possible Asserted Effect:
The student in question was eligible to receive a $5,500 subsidized Federal Direct Loan but was only offered $4,500. In addition, the student in question was eligible to receive $7,000 in unsubsidized Federal Direct Loan but was only offered $6,000.
Repeat Finding:
There was not a similar finding for the year ended June 30, 2023.
Statistical Sampling:
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation:
An additional $1,000 of subsidized and unsubsidized Federal Direct Loan funds could be offered to the student. If the student declines the additional funds, $1,000 of the unsubsidized loan should be reclassified as a subsidized loan. Procedures should be improved to ensure that all eligible credit hours are included when determining subsidized loan eligibility.
Management Response:
The Interim Student Financial Aid Director has requested a repackage of aid by the third-party financial aid administrator. Procedures will be improved to ensure that credit hours are reviewed before awarding aid.
FINDING 2024-004 – Title IV Aid Not Returned
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Direct Student Loan Program
ALN and Program Expenditures: 84.268 ($709,913)
Award Number: P268K243315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $3,711
Condition Found:
A student requested that the University return $3,711 of unsubsidized Federal Direct Loan funds to the lender in December 2023. The University has yet to return the funds.
Criteria:
The University is required to notify students of the process to return or deny a loan disbursement at the time the disbursement is made. The student in question followed the procedures within the required timeframe.
Cause:
All of the steps were not completed in the return process. While COD no longer shows the loan disbursement as outstanding, NSLDS still lists the disbursement as outstanding with a December 2023 disbursement date, and the funds were never removed from the student’s account.
Possible Asserted Effect:
$3,711 of unsubsidized Federal Direct Loan funds should be returned.
Repeat Finding:
There was not a similar finding in the prior year.
Statistical Sampling:
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation:
We recommend the University work with the third-party administrator to return the $3,711 as soon as possible. Procedures should be improved to ensure that funds are being returned timely.
Management Response:
The Interim Financial Aid Director will work with the third-party administrator to return the $3,711. The student’s account and NSLDS will be updated. Procedures will be improved to ensure that funds are returned timely.
FINDING 2024-005– Aid Not Disbursed
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Direct Student Loan Program
Federal Pell Grant Program
ALN and Program Expenditures: 84.268 ($709,913)
84.063 ($487,504)
Award Number: P268K243315
P063P233315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $2,722(84.268)
$1,023(84.063)
Condition Found:
The second financial aid disbursement was not made to one of the twenty students in our sample. The student in question was eligible to receive $1,023 of Federal Pell Grant funds, $1,732 of subsidized Federal Direct Loan funds, and $990 of unsubsidized Federal Direct Loan Funds.
Criteria:
Title IV aid should be made in two disbursements. Typically, there is one disbursement per academic period or semester as in the case of Randall University.
Cause:
The disbursements for the student in question were overlooked.
Possible Asserted Effect:
The student did not receive $1,023 of Federal Pell Grant funds, $1,732 of subsidized Federal Direct Loan funds, and $990 of unsubsidized Federal Direct Loan Funds that the student was eligible to receive.
Repeat Finding:
There was not a similar finding in the prior year.
Recommendation:
The University should disburse the aid to the student in question. Checks and balances should be created to ensure that aid is awarded and requested for all eligible students.
Management Response:
The University is on the HCM2 method for disbursing aid. The funds in question will be posted to the student’s account. The University will request the funds from the Department of Education when the next aid batch is submitted.
Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.
FINDING 2024-002– R2T4 Calculation
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Pell Grant Program
ALN and Program Expenditures: 84.063 ($487,504)
Award Number: P063P233315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $1,574
Condition Found:
The R2T4 was calculated correctly, but the Title IV funds were not returned timely for one of the twenty students in the compliance testing sample.
Criteria:
Per the Student Financial Aid Handbook Volume 5, Chapter 2, “a school must return unearned funds for which it is responsible as soon as possible but no later than 45 days after the date of determination of a student’s withdrawal.”
Cause:
The financial aid director did not realize the funds had not been returned.
Possible Asserted Effect:
$1,547 of Pell Grant funds have not been returned to the Department of Education.
Repeat Finding:
See Finding 2023-002 for a similar finding the prior year.
Recommendation:
$1,547 of Federal Pell Grant funds should be returned to the Department of Education. Procedures should be improved to ensure that funds are returned to the Department of Education timely after an R2T4 is completed.
Management Response:
Management agrees that the funds were not returned after the R2T4 was completed. The Interim Director of Financial Aid has submitted a request to the University’s third party servicer to return the funds.
FINDING 2024-005– Aid Not Disbursed
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Direct Student Loan Program
Federal Pell Grant Program
ALN and Program Expenditures: 84.268 ($709,913)
84.063 ($487,504)
Award Number: P268K243315
P063P233315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $2,722(84.268)
$1,023(84.063)
Condition Found:
The second financial aid disbursement was not made to one of the twenty students in our sample. The student in question was eligible to receive $1,023 of Federal Pell Grant funds, $1,732 of subsidized Federal Direct Loan funds, and $990 of unsubsidized Federal Direct Loan Funds.
Criteria:
Title IV aid should be made in two disbursements. Typically, there is one disbursement per academic period or semester as in the case of Randall University.
Cause:
The disbursements for the student in question were overlooked.
Possible Asserted Effect:
The student did not receive $1,023 of Federal Pell Grant funds, $1,732 of subsidized Federal Direct Loan funds, and $990 of unsubsidized Federal Direct Loan Funds that the student was eligible to receive.
Repeat Finding:
There was not a similar finding in the prior year.
Recommendation:
The University should disburse the aid to the student in question. Checks and balances should be created to ensure that aid is awarded and requested for all eligible students.
Management Response:
The University is on the HCM2 method for disbursing aid. The funds in question will be posted to the student’s account. The University will request the funds from the Department of Education when the next aid batch is submitted.
Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.
Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.
Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.