Audit 349445

FY End
2024-06-30
Total Expended
$18.29M
Findings
24
Programs
12
Year: 2024 Accepted: 2025-03-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
538708 2024-002 Material Weakness - N
538709 2024-002 Material Weakness - N
538710 2024-002 Material Weakness - N
538711 2024-002 Material Weakness - N
538712 2024-003 Significant Deficiency - L
538713 2024-003 Significant Deficiency - L
538714 2024-001 Material Weakness - N
538715 2024-001 Material Weakness - N
538716 2024-002 Material Weakness - N
538717 2024-002 Material Weakness - N
538718 2024-003 Significant Deficiency - L
538719 2024-003 Significant Deficiency - L
1115150 2024-002 Material Weakness - N
1115151 2024-002 Material Weakness - N
1115152 2024-002 Material Weakness - N
1115153 2024-002 Material Weakness - N
1115154 2024-003 Significant Deficiency - L
1115155 2024-003 Significant Deficiency - L
1115156 2024-001 Material Weakness - N
1115157 2024-001 Material Weakness - N
1115158 2024-002 Material Weakness - N
1115159 2024-002 Material Weakness - N
1115160 2024-003 Significant Deficiency - L
1115161 2024-003 Significant Deficiency - L

Contacts

Name Title Type
T41BJJ3F9JZ9 Brian Lueth Auditee
2694884256 Kenley Penner Auditor
No contacts on file

Notes to SEFA

Title: Adjustments and Transfers Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Kalamazoo Valley Community College (the “College”) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). 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 the College. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass through entity identifying numbers are presented where available. The College has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. As allowable, and in accordance with federal regulations issued by the U.S. Department of Education, Kalamazoo Valley Community College transferred $29,832 of Federal Work‑Study (FWS) funds (84.033) to the Federal Supplemental Education Opportunity Grant (SEOG) funds (84.007) during the year ended June 30, 2024. The College carried forward $26,533 of SEOG funds and $20,000 of FWS funds from the year ended June 30, 2024 to the year ended June 30, 2025. In addition, the College carried back $26,533 of SEOG funds and $20,000 of FWS funds from the year ended June 30, 2024 to the year ended June 30, 2023.

Finding Details

Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268) and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - Institutions submit Direct Loan and Pell Grant origination records and disbursement records to the COD system. (34 CFR 690.83) Condition - The College did not have controls in place to ensure appropriate reporting to COD. Questioned Costs - None Identification of How Questioned Costs Were Computed - None Context - The College was not performing reconciliations between Banner and COD to ensure appropriate reporting to COD for Pell Grants and Direct Loans. Cause and Effect - The College experienced turnover in the financial aid department and, throughout the transition, historical procedures and controls were not followed. As a result, the control was not operating effectively to prepare and review reconciliations between Banner and COD. Recommendation - The College should implement procedures and controls to review the amount of Pell Grant and Direct Loans reported to COD to ensure it agrees to what has been disbursed to students. Views of Responsible Officials and Planned Corrective Actions - The College has begun training additional individuals on the reconciliation process and has updated its procedures to include what documentation needs to be retained on a monthly basis to ensure accuracy between the amount the College shows as disbursed and the amount the U.S. Department of Education shows has been disbursed.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268) and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - Institutions submit Direct Loan and Pell Grant origination records and disbursement records to the COD system. (34 CFR 690.83) Condition - The College did not have controls in place to ensure appropriate reporting to COD. Questioned Costs - None Identification of How Questioned Costs Were Computed - None Context - The College was not performing reconciliations between Banner and COD to ensure appropriate reporting to COD for Pell Grants and Direct Loans. Cause and Effect - The College experienced turnover in the financial aid department and, throughout the transition, historical procedures and controls were not followed. As a result, the control was not operating effectively to prepare and review reconciliations between Banner and COD. Recommendation - The College should implement procedures and controls to review the amount of Pell Grant and Direct Loans reported to COD to ensure it agrees to what has been disbursed to students. Views of Responsible Officials and Planned Corrective Actions - The College has begun training additional individuals on the reconciliation process and has updated its procedures to include what documentation needs to be retained on a monthly basis to ensure accuracy between the amount the College shows as disbursed and the amount the U.S. Department of Education shows has been disbursed.
Assistance Listing Number, Federal Agency, and Program Name - 84.268, U.S. Department of Education, Student Financial Assistance Program - Federal Direct Student Loan Program Federal Award Identification Number and Year - P268K242876, 2023-2024 Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Before a direct disbursement loan disbursement, the institution must notify a student of the amount of funds that the student or their parent can expect to receive under each title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans. After the direct loan disbursement, the institution must provide timely notification to the student of the (1) date and amount of the disbursement, (2) student/parent’s right to cancel, and (3) procedure and time by which the student or parent must notify the institution that he or she wishes to cancel (34 CFR 668.165). Condition - The College did not provide notifications to certain students related to direct loan disbursements. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - There were 7 students in a sample of 40 students receiving direct loans which did not receive a notification. Cause and Effect - A control was lacking to ensure the notifications were sent to all students receiving direct loans. Recommendation - We recommend a control be implemented to ensure notifications are sent to all students receiving direct loans. Views of Responsible Officials and Corrective Action Plan - The director of financial aid will work with our information technology department to ensure the criteria used for triggering the notification emails is correct and capturing all the necessary students. Additionally, an exception report will be created to identify students who have not been sent the notification email for the financial aid department to review and then send the appropriate notification.
Assistance Listing Number, Federal Agency, and Program Name - 84.268, U.S. Department of Education, Student Financial Assistance Program - Federal Direct Student Loan Program Federal Award Identification Number and Year - P268K242876, 2023-2024 Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Before a direct disbursement loan disbursement, the institution must notify a student of the amount of funds that the student or their parent can expect to receive under each title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans. After the direct loan disbursement, the institution must provide timely notification to the student of the (1) date and amount of the disbursement, (2) student/parent’s right to cancel, and (3) procedure and time by which the student or parent must notify the institution that he or she wishes to cancel (34 CFR 668.165). Condition - The College did not provide notifications to certain students related to direct loan disbursements. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - There were 7 students in a sample of 40 students receiving direct loans which did not receive a notification. Cause and Effect - A control was lacking to ensure the notifications were sent to all students receiving direct loans. Recommendation - We recommend a control be implemented to ensure notifications are sent to all students receiving direct loans. Views of Responsible Officials and Corrective Action Plan - The director of financial aid will work with our information technology department to ensure the criteria used for triggering the notification emails is correct and capturing all the necessary students. Additionally, an exception report will be created to identify students who have not been sent the notification email for the financial aid department to review and then send the appropriate notification.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268) and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - Institutions submit Direct Loan and Pell Grant origination records and disbursement records to the COD system. (34 CFR 690.83) Condition - The College did not have controls in place to ensure appropriate reporting to COD. Questioned Costs - None Identification of How Questioned Costs Were Computed - None Context - The College was not performing reconciliations between Banner and COD to ensure appropriate reporting to COD for Pell Grants and Direct Loans. Cause and Effect - The College experienced turnover in the financial aid department and, throughout the transition, historical procedures and controls were not followed. As a result, the control was not operating effectively to prepare and review reconciliations between Banner and COD. Recommendation - The College should implement procedures and controls to review the amount of Pell Grant and Direct Loans reported to COD to ensure it agrees to what has been disbursed to students. Views of Responsible Officials and Planned Corrective Actions - The College has begun training additional individuals on the reconciliation process and has updated its procedures to include what documentation needs to be retained on a monthly basis to ensure accuracy between the amount the College shows as disbursed and the amount the U.S. Department of Education shows has been disbursed.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268) and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - Institutions submit Direct Loan and Pell Grant origination records and disbursement records to the COD system. (34 CFR 690.83) Condition - The College did not have controls in place to ensure appropriate reporting to COD. Questioned Costs - None Identification of How Questioned Costs Were Computed - None Context - The College was not performing reconciliations between Banner and COD to ensure appropriate reporting to COD for Pell Grants and Direct Loans. Cause and Effect - The College experienced turnover in the financial aid department and, throughout the transition, historical procedures and controls were not followed. As a result, the control was not operating effectively to prepare and review reconciliations between Banner and COD. Recommendation - The College should implement procedures and controls to review the amount of Pell Grant and Direct Loans reported to COD to ensure it agrees to what has been disbursed to students. Views of Responsible Officials and Planned Corrective Actions - The College has begun training additional individuals on the reconciliation process and has updated its procedures to include what documentation needs to be retained on a monthly basis to ensure accuracy between the amount the College shows as disbursed and the amount the U.S. Department of Education shows has been disbursed.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268) and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - Institutions submit Direct Loan and Pell Grant origination records and disbursement records to the COD system. (34 CFR 690.83) Condition - The College did not have controls in place to ensure appropriate reporting to COD. Questioned Costs - None Identification of How Questioned Costs Were Computed - None Context - The College was not performing reconciliations between Banner and COD to ensure appropriate reporting to COD for Pell Grants and Direct Loans. Cause and Effect - The College experienced turnover in the financial aid department and, throughout the transition, historical procedures and controls were not followed. As a result, the control was not operating effectively to prepare and review reconciliations between Banner and COD. Recommendation - The College should implement procedures and controls to review the amount of Pell Grant and Direct Loans reported to COD to ensure it agrees to what has been disbursed to students. Views of Responsible Officials and Planned Corrective Actions - The College has begun training additional individuals on the reconciliation process and has updated its procedures to include what documentation needs to be retained on a monthly basis to ensure accuracy between the amount the College shows as disbursed and the amount the U.S. Department of Education shows has been disbursed.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268) and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - Institutions submit Direct Loan and Pell Grant origination records and disbursement records to the COD system. (34 CFR 690.83) Condition - The College did not have controls in place to ensure appropriate reporting to COD. Questioned Costs - None Identification of How Questioned Costs Were Computed - None Context - The College was not performing reconciliations between Banner and COD to ensure appropriate reporting to COD for Pell Grants and Direct Loans. Cause and Effect - The College experienced turnover in the financial aid department and, throughout the transition, historical procedures and controls were not followed. As a result, the control was not operating effectively to prepare and review reconciliations between Banner and COD. Recommendation - The College should implement procedures and controls to review the amount of Pell Grant and Direct Loans reported to COD to ensure it agrees to what has been disbursed to students. Views of Responsible Officials and Planned Corrective Actions - The College has begun training additional individuals on the reconciliation process and has updated its procedures to include what documentation needs to be retained on a monthly basis to ensure accuracy between the amount the College shows as disbursed and the amount the U.S. Department of Education shows has been disbursed.
Assistance Listing Number, Federal Agency, and Program Name - 84.268, U.S. Department of Education, Student Financial Assistance Program - Federal Direct Student Loan Program Federal Award Identification Number and Year - P268K242876, 2023-2024 Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Before a direct disbursement loan disbursement, the institution must notify a student of the amount of funds that the student or their parent can expect to receive under each title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans. After the direct loan disbursement, the institution must provide timely notification to the student of the (1) date and amount of the disbursement, (2) student/parent’s right to cancel, and (3) procedure and time by which the student or parent must notify the institution that he or she wishes to cancel (34 CFR 668.165). Condition - The College did not provide notifications to certain students related to direct loan disbursements. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - There were 7 students in a sample of 40 students receiving direct loans which did not receive a notification. Cause and Effect - A control was lacking to ensure the notifications were sent to all students receiving direct loans. Recommendation - We recommend a control be implemented to ensure notifications are sent to all students receiving direct loans. Views of Responsible Officials and Corrective Action Plan - The director of financial aid will work with our information technology department to ensure the criteria used for triggering the notification emails is correct and capturing all the necessary students. Additionally, an exception report will be created to identify students who have not been sent the notification email for the financial aid department to review and then send the appropriate notification.
Assistance Listing Number, Federal Agency, and Program Name - 84.268, U.S. Department of Education, Student Financial Assistance Program - Federal Direct Student Loan Program Federal Award Identification Number and Year - P268K242876, 2023-2024 Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Before a direct disbursement loan disbursement, the institution must notify a student of the amount of funds that the student or their parent can expect to receive under each title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans. After the direct loan disbursement, the institution must provide timely notification to the student of the (1) date and amount of the disbursement, (2) student/parent’s right to cancel, and (3) procedure and time by which the student or parent must notify the institution that he or she wishes to cancel (34 CFR 668.165). Condition - The College did not provide notifications to certain students related to direct loan disbursements. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - There were 7 students in a sample of 40 students receiving direct loans which did not receive a notification. Cause and Effect - A control was lacking to ensure the notifications were sent to all students receiving direct loans. Recommendation - We recommend a control be implemented to ensure notifications are sent to all students receiving direct loans. Views of Responsible Officials and Corrective Action Plan - The director of financial aid will work with our information technology department to ensure the criteria used for triggering the notification emails is correct and capturing all the necessary students. Additionally, an exception report will be created to identify students who have not been sent the notification email for the financial aid department to review and then send the appropriate notification.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268) and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - Institutions submit Direct Loan and Pell Grant origination records and disbursement records to the COD system. (34 CFR 690.83) Condition - The College did not have controls in place to ensure appropriate reporting to COD. Questioned Costs - None Identification of How Questioned Costs Were Computed - None Context - The College was not performing reconciliations between Banner and COD to ensure appropriate reporting to COD for Pell Grants and Direct Loans. Cause and Effect - The College experienced turnover in the financial aid department and, throughout the transition, historical procedures and controls were not followed. As a result, the control was not operating effectively to prepare and review reconciliations between Banner and COD. Recommendation - The College should implement procedures and controls to review the amount of Pell Grant and Direct Loans reported to COD to ensure it agrees to what has been disbursed to students. Views of Responsible Officials and Planned Corrective Actions - The College has begun training additional individuals on the reconciliation process and has updated its procedures to include what documentation needs to be retained on a monthly basis to ensure accuracy between the amount the College shows as disbursed and the amount the U.S. Department of Education shows has been disbursed.
Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268) and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Significant deficiency Repeat Finding - No Criteria - Institutions submit Direct Loan and Pell Grant origination records and disbursement records to the COD system. (34 CFR 690.83) Condition - The College did not have controls in place to ensure appropriate reporting to COD. Questioned Costs - None Identification of How Questioned Costs Were Computed - None Context - The College was not performing reconciliations between Banner and COD to ensure appropriate reporting to COD for Pell Grants and Direct Loans. Cause and Effect - The College experienced turnover in the financial aid department and, throughout the transition, historical procedures and controls were not followed. As a result, the control was not operating effectively to prepare and review reconciliations between Banner and COD. Recommendation - The College should implement procedures and controls to review the amount of Pell Grant and Direct Loans reported to COD to ensure it agrees to what has been disbursed to students. Views of Responsible Officials and Planned Corrective Actions - The College has begun training additional individuals on the reconciliation process and has updated its procedures to include what documentation needs to be retained on a monthly basis to ensure accuracy between the amount the College shows as disbursed and the amount the U.S. Department of Education shows has been disbursed.