Audit 350451

FY End
2024-06-30
Total Expended
$407.04M
Findings
4
Programs
151
Organization: Vanderbilt University (TN)
Year: 2024 Accepted: 2025-03-31
Auditor: Pwc LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
540799 2024-001 - - N
540800 2024-001 - - N
1117241 2024-001 - - N
1117242 2024-001 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $112.60M Yes 1
93.264 Nurse Faculty Loan Program (nflp) $9.99M Yes 0
84.063 Federal Pell Grant Program $8.18M Yes 0
84.038 Federal Perkins Loan Program $3.72M Yes 0
81.049 Office of Science Financial Assistance Program $3.67M - 0
98.RD Agency for International Development $2.80M - 0
93.364 Nursing Student Loans $2.16M Yes 0
93.264 Outstanding Loans As of July 1, 2023 $1.79M Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $1.71M Yes 0
47.083 Office of Integrative Activities $1.63M - 0
84.033 Federal Work-Study Program $1.47M Yes 0
84.411 Investing in Innovation (i3) Fund $1.45M - 0
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $1.00M Yes 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $916,118 - 0
66.RD Environmental Protection Agency $902,576 - 0
81.135 Advanced Research Projects Agency - Energy $770,211 - 0
84.181 Special Education-Grants for Infants and Families $764,670 - 0
93.879 Medical Library Assistance $722,404 - 0
93.516 Public Health Training Centers Program $580,709 - 0
93.351 Research Infrastructure Programs $537,300 - 0
93.364 Outstanding Loans As of July 1, 2023 $498,750 Yes 0
19.600 Bureau of Near Eastern Affairs $483,870 - 0
93.247 Advanced Nursing Education Grant Program $469,368 - 0
93.732 Mental and Behavioral Health Education and Training Grants $457,537 - 0
93.359 Nurse Education, Practice, Quality and Retention Grants $297,294 - 0
93.590 Community-Based Child Abuse Prevention Grants $284,846 - 0
93.855 Allergy and Infectious Diseases Research $275,963 - 0
93.173 Research Related to Deafness and Communication Disorders $266,685 - 0
93.600 Head Start $261,572 - 0
84.015 National Resource Centers Program for Foreign Language and Area Studies Or Foreign Language and International Studies Program and Foreign Language and Area Studies Fellowship Program $258,263 - 0
19.010 Academic Exchange Programs - Hubert H. Humphrey Fellowship Program $242,219 - 0
66.509 Science to Achieve Results (star) Research Program $237,471 - 0
93.866 Aging Research $237,083 - 0
19.408 Academic Exchange Programs - Teachers $202,185 - 0
93.394 Cancer Detection and Diagnosis Research $165,472 - 0
43.RD National Aeronautics and Space Administration $165,442 - 0
47.070 Computer and Information Science and Engineering $162,434 - 0
93.632 University Centers for Excellence in Developmental Disabilities Education, Research, and Service $145,891 - 0
47.041 Engineering Grants $128,567 - 0
11.609 Measurement and Engineering Research and Standards $127,194 - 0
93.172 Human Genome Research $124,020 - 0
93.865 Child Health and Human Development Extramural Research $119,406 - 0
93.113 Environmental Health $115,884 - 0
93.969 Pphf Geriatric Education Centers $114,416 - 0
10.310 Agriculture and Food Research Initiative (afri) $113,920 - 0
81.089 Fossil Energy Research and Development $112,721 - 0
93.226 Research on Healthcare Costs, Quality and Outcomes $99,229 - 0
43.002 Aeronautics $98,107 - 0
93.213 Research and Training in Complementary and Integrative Health $94,414 - 0
12.750 Uniformed Services University Medical Research Projects $93,957 - 0
93.121 Oral Diseases and Disorders Research $93,930 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant Program $93,456 - 0
12.800 Air Force Defense Research Sciences Program $93,088 - 0
93.398 Cancer Research Manpower $90,627 - 0
93.564 Child Support Enforcement Research $80,474 - 0
81.121 Nuclear Energy Research, Development and Demonstration $78,513 - 0
84.305 Education Research, Development and Dissemination $76,548 - 0
47.079 Office of International Science and Engineering $75,900 - 0
15.509 Title Ii, Colorado River Basin Salinity Control $70,724 - 0
20.530 Public Transportation Innovation $67,777 - 0
12.420 Military Medical Research and Development $67,424 - 0
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $66,126 - 0
43.012 Space Technology $64,980 - 0
93.350 National Center for Advancing Translational Sciences $60,739 - 0
93.225 National Research Service Awards Health Services Research Training $58,898 - 0
93.884 Grants for Primary Care Training and Enhancement $58,255 - 0
93.393 Cancer Cause and Prevention Research $54,409 - 0
84.206 Javits Gifted and Talented Students Education $53,266 - 0
45.169 Promotion of the Humanities_office of Digital Humanities $52,267 - 0
16.026 Ovw Research and Evaluation Program $49,197 - 0
19.040 Public Diplomacy Programs $48,016 - 0
93.262 Occupational Safety and Health Program $46,330 - 0
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $45,114 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $43,228 - 0
12.225 Commercial Technologies for Maintenance Activities Program $42,986 - 0
45.149 Promotion of the Humanities Division of Preservation and Access $42,945 - 0
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $42,277 - 0
64.RD Interagency Personnel Agreement $39,692 - 0
84.327 Special Education Educational Technology Media, and Materials for Individuals with Disabilities $39,681 - 0
81.RD Department of Energy $39,194 - 0
47.050 Geosciences $38,936 - 0
81.086 Conservation Research and Development $37,687 - 0
10.001 Agricultural Research_basic and Applied Research $36,866 - 0
93.242 Mental Health Research Grants $35,343 - 0
93.396 Cancer Biology Research $34,685 - 0
45.160 Promotion of the Humanities_fellowships and Stipends $33,749 - 0
93.630 Developmental Disabilities Basic Support and Advocacy Grants $33,071 - 0
93.943 Epidemiologic Research Studies of Acquired Immunodeficiency Syndrome (aids) and Human Immunodeficiency Virus (hiv) Infection in Selected Population Groups $33,041 - 0
93.233 National Center on Sleep Disorders Research $32,663 - 0
84.027 Special Education_grants to States $32,650 - 0
10.237 From Learning to Leading: Cultivating the Next Generation of Diverse Food and Agriculture Professionals $32,371 - 0
47.076 Education and Human Resources $31,166 - 0
12.910 Research and Technology Development $29,541 - 0
20.820 Maritime Studies and Innovations $25,694 - 0
20.701 University Transportation Centers Program $23,951 - 0
93.283 Centers for Disease Control and Prevention_investigations and Technical Assistance $21,735 - 0
47.075 Social, Behavioral, and Economic Sciences $20,929 - 0
12.RD Department of Defense $20,563 - 0
93.273 Alcohol Research Programs $19,814 - 0
45.162 Promotion of the Humanities_teaching and Learning Resources and Curriculum Development $17,503 - 0
15.944 Natural Resource Stewardship $16,796 - 0
43.003 Exploration $16,702 - 0
98.001 Usaid Foreign Assistance for Programs Overseas $15,940 - 0
84.324 Research in Special Education $14,831 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $14,410 Yes 1
93.840 Translation and Implementation Science Research for Heart, Lung, Blood Diseases, and Sleep Disorders $14,281 - 0
47.084 National Science Foundation Technology Innovation and Partnerships $13,832 - 0
12.431 Basic Scientific Research $13,343 - 0
45.025 Promotion of the Arts Partnership Agreements $13,124 - 0
45.161 Promotion of the Humanities Research $12,978 - 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $12,559 - 0
45.024 Promotion of the Arts_grants to Organizations and Individuals $12,350 - 0
15.926 American Battlefield Protection $12,305 - 0
43.001 Science $11,846 - 0
93.838 Lung Diseases Research $11,613 - 0
20.724 Pipeline Safety Research Competitive Academic Agreement Program (caap) $10,599 - 0
93.384 Advanced Research Projects Agency for Health $10,501 - 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $9,590 - 0
93.839 Blood Diseases and Resources Research $9,530 - 0
15.506 Water Desalination Research and Development $9,391 - 0
47.RD National Science Foundation $8,200 - 0
93.867 Vision Research $7,139 - 0
12.300 Basic and Applied Scientific Research $6,505 - 0
20.616 National Priority Safety Programs $5,031 - 0
20.RD Department of Transportation $4,511 - 0
20.215 Highway Training and Education $3,500 - 0
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $3,499 - 0
93.361 Nursing Research $3,403 - 0
20.205 Highway Planning and Construction $3,273 - 0
47.049 Mathematical and Physical Sciences $3,234 - 0
47.074 Biological Sciences $3,153 - 0
93.859 Biomedical Research and Research Training $1,527 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $1,400 - 0
93.110 Maternal and Child Health Federal Consolidated Programs $822 - 0
16.053 Sexual Assault Forensic Examinations $1 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $-3 - 0
97.RD Department of Homeland Security $-13 - 0
93.279 Drug Abuse and Addiction Research Programs $-45 - 0
43.008 Education $-174 - 0
93.RD Department of Health and Human Services $-231 - 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $-528 - 0
45.312 National Leadership Grants $-554 - 0
84.RD Department of Education $-587 - 0
93.310 Trans-Nih Research Support $-1,832 - 0
93.837 Cardiovascular Diseases Research $-2,158 - 0
93.547 National Health Service Corps $-5,899 - 0
93.397 Cancer Centers Support Grants $-8,281 - 0
93.307 Minority Health and Health Disparities Research $-11,509 - 0
93.395 Cancer Treatment Research $-11,550 - 0
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $-12,071 - 0
84.326 Special Education_technical Assistance and Dissemination to Improve Services and Results for Children with Disabilities $-39,470 - 0

Contacts

Name Title Type
GTNBNWXJ12D5 Jana Blick Auditee
6153227936 Jim Dodson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal expenditures of Vanderbilt University (“Vanderbilt”) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions as applicable. Because the Schedule presents only a selected portion of the operations of Vanderbilt, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Vanderbilt. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between Vanderbilt and agencies and departments of the federal government and all subawards to Vanderbilt by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. Summary of Significant Accounting Policies for the Schedule - For purposes of the Schedule, expenditures for federal programs are recognized on the accrual basis, which is consistent with generally accepted accounting principles. Expenditures for federal student financial assistance programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students’ FSEOG program grants, FWS program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Uniform Guidance or A-21, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for certain nonstudent financial assistance awards include facilities and administrative costs (indirect costs). Facilities and administrative costs allocated to such awards for the year ended June 30, 2024 were based on predetermined fixed rates negotiated with Vanderbilt’s cognizant federal agency, the U.S. Department of Health and Human Services. Indirect costs and recoveries of those costs under sponsored programs are classified as unrestricted expenditures and revenues, respectively, in Vanderbilt’s financial statements. Vanderbilt has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Negative amounts represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. This results in accurate reporting on a cumulative basis over multiple periods. Assistance Listing numbers and pass-through numbers are provided when available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal expenditures of Vanderbilt University (“Vanderbilt”) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions as applicable. Because the Schedule presents only a selected portion of the operations of Vanderbilt, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Vanderbilt. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between Vanderbilt and agencies and departments of the federal government and all subawards to Vanderbilt by nonfederal organizations pursuant to federal grants, contracts, and similar agreements.
Title: Summary of Significant Accounting Policies for the Schedule Accounting Policies: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal expenditures of Vanderbilt University (“Vanderbilt”) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions as applicable. Because the Schedule presents only a selected portion of the operations of Vanderbilt, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Vanderbilt. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between Vanderbilt and agencies and departments of the federal government and all subawards to Vanderbilt by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. Summary of Significant Accounting Policies for the Schedule - For purposes of the Schedule, expenditures for federal programs are recognized on the accrual basis, which is consistent with generally accepted accounting principles. Expenditures for federal student financial assistance programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students’ FSEOG program grants, FWS program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Uniform Guidance or A-21, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for certain nonstudent financial assistance awards include facilities and administrative costs (indirect costs). Facilities and administrative costs allocated to such awards for the year ended June 30, 2024 were based on predetermined fixed rates negotiated with Vanderbilt’s cognizant federal agency, the U.S. Department of Health and Human Services. Indirect costs and recoveries of those costs under sponsored programs are classified as unrestricted expenditures and revenues, respectively, in Vanderbilt’s financial statements. Vanderbilt has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Negative amounts represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. This results in accurate reporting on a cumulative basis over multiple periods. Assistance Listing numbers and pass-through numbers are provided when available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate. For purposes of the Schedule, expenditures for federal programs are recognized on the accrual basis, which is consistent with generally accepted accounting principles. Expenditures for federal student financial assistance programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students’ FSEOG program grants, FWS program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Uniform Guidance or A-21, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for certain nonstudent financial assistance awards include facilities and administrative costs (indirect costs). Facilities and administrative costs allocated to such awards for the year ended June 30, 2024 were based on predetermined fixed rates negotiated with Vanderbilt’s cognizant federal agency, the U.S. Department of Health and Human Services. Indirect costs and recoveries of those costs under sponsored programs are classified as unrestricted expenditures and revenues, respectively, in Vanderbilt’s financial statements. Vanderbilt has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Negative amounts represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. This results in accurate reporting on a cumulative basis over multiple periods. Assistance Listing numbers and pass-through numbers are provided when available.
Title: Federal Student Financial Assistance Programs Accounting Policies: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal expenditures of Vanderbilt University (“Vanderbilt”) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions as applicable. Because the Schedule presents only a selected portion of the operations of Vanderbilt, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Vanderbilt. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between Vanderbilt and agencies and departments of the federal government and all subawards to Vanderbilt by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. Summary of Significant Accounting Policies for the Schedule - For purposes of the Schedule, expenditures for federal programs are recognized on the accrual basis, which is consistent with generally accepted accounting principles. Expenditures for federal student financial assistance programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students’ FSEOG program grants, FWS program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Uniform Guidance or A-21, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for certain nonstudent financial assistance awards include facilities and administrative costs (indirect costs). Facilities and administrative costs allocated to such awards for the year ended June 30, 2024 were based on predetermined fixed rates negotiated with Vanderbilt’s cognizant federal agency, the U.S. Department of Health and Human Services. Indirect costs and recoveries of those costs under sponsored programs are classified as unrestricted expenditures and revenues, respectively, in Vanderbilt’s financial statements. Vanderbilt has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Negative amounts represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. This results in accurate reporting on a cumulative basis over multiple periods. Assistance Listing numbers and pass-through numbers are provided when available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate. The Perkins, Nurse Faculty Loan Program (NFLP), and Nursing Student Loan (NSL) programs are administered directly by Vanderbilt, and balances and transactions relating to these programs are included in Vanderbilt’s consolidated financial statements. The Perkins program was closed in 2017 and the outstanding funds are being paid back. Loans outstanding at the beginning of the year and the amount of direct loans made during the year ended June 30, 2024 are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2024 consists of: (see chart) Vanderbilt is responsible for the performance of certain administrative duties with respect to the guaranteed federal direct loan programs. As a university qualified to originate loans, Vanderbilt is responsible for handling the complete loan origination process, including funds management and promissory note functions. Vanderbilt is not responsible for the collection of these loans.

Finding Details

Section III – Federal Award Findings and Questioned Costs Finding 2024-001: Disbursement Notification Federal Agency: Department of Education Program: Federal Direct Student Loans and Teacher Education Assistance for College and Higher Education Grants (TEACH Grants) Assistance Listing #: 84.268 and 84.379 Award #: Various Award Year: 2023-2024 Criteria: When Direct Loans or TEACH1 funds are being credited to a student’s account on behalf of the federal government, the institution must notify the student, or parent, in writing of 1) the date and amount of the disbursement; 2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and 3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement (a minimum of 14 or 30 days depending on confirmation process). Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student’s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition: During the 2024 award year, thirteen out of the twenty-five students tested in our sample of the disbursement compliance requirement noted above were not notified in compliance with the above-noted requirement. For eleven out of the thirteen exceptions, there was not timely notification of the disbursement of federal aid to the student in accordance with the timelines outlined in the compliance requirement above. For ten out of the eleven students, notification of disbursement was sent between 9 and 60 days subsequent to disbursement. For one out of the eleven students, management was unable to provide evidence of disbursement notification. For two out of the thirteen exceptions, the notifications sent to the students did not include the dollar amounts disbursed or the date of disbursement. For these two students, management was unable to provide evidence of subsequent disbursement notification. Questioned Costs: None. Cause: The University’s internal student information system, PeopleSoft, is configured to automatically send students notifications of federal aid loan disbursements within the required timelines. However, in April and May of 2024, a new staff member in the Office of Student Financial Aid and Scholarships erroneously checked a manual Peoplesoft flag, thereby preventing subsequent disbursement notifications. This mistake occurred because the electronic procedure the staff member followed was incomplete due to a missing screen shot which led to the inadvertent mistake. In June the University identified the issue through subsequent manual reviews and sent notifications to the affected students, although outside the required timelines. Additionally, in January 2024, the initial run of the loan notifications for the spring 2024 semester was missing certain required data, such as dollar amounts and disbursement dates. This occurred because one of the queries within the PeopleSoft communication generation process failed to complete due to a data merge issue combined with a large data input resulting in blank information on certain of the notifications. Effect: The University did not timely/accurately send notifications to students regarding disbursements of federal aid in accordance with the above-noted compliance requirement. Recommendation: We recommend the University remain focused on this compliance requirement and enhance its monitoring of automated controls (such as through manual reviews) to ensure students are notified timely of disbursements and that all required data is included within each notification. Additionally, we recommend the University continue to monitor the quality control steps installed in award year 2024 to ensure compliance. Views of Responsible Officials/Management Response: See Management’s view and corrective action plan included at the end of this report.
Section III – Federal Award Findings and Questioned Costs Finding 2024-001: Disbursement Notification Federal Agency: Department of Education Program: Federal Direct Student Loans and Teacher Education Assistance for College and Higher Education Grants (TEACH Grants) Assistance Listing #: 84.268 and 84.379 Award #: Various Award Year: 2023-2024 Criteria: When Direct Loans or TEACH1 funds are being credited to a student’s account on behalf of the federal government, the institution must notify the student, or parent, in writing of 1) the date and amount of the disbursement; 2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and 3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement (a minimum of 14 or 30 days depending on confirmation process). Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student’s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition: During the 2024 award year, thirteen out of the twenty-five students tested in our sample of the disbursement compliance requirement noted above were not notified in compliance with the above-noted requirement. For eleven out of the thirteen exceptions, there was not timely notification of the disbursement of federal aid to the student in accordance with the timelines outlined in the compliance requirement above. For ten out of the eleven students, notification of disbursement was sent between 9 and 60 days subsequent to disbursement. For one out of the eleven students, management was unable to provide evidence of disbursement notification. For two out of the thirteen exceptions, the notifications sent to the students did not include the dollar amounts disbursed or the date of disbursement. For these two students, management was unable to provide evidence of subsequent disbursement notification. Questioned Costs: None. Cause: The University’s internal student information system, PeopleSoft, is configured to automatically send students notifications of federal aid loan disbursements within the required timelines. However, in April and May of 2024, a new staff member in the Office of Student Financial Aid and Scholarships erroneously checked a manual Peoplesoft flag, thereby preventing subsequent disbursement notifications. This mistake occurred because the electronic procedure the staff member followed was incomplete due to a missing screen shot which led to the inadvertent mistake. In June the University identified the issue through subsequent manual reviews and sent notifications to the affected students, although outside the required timelines. Additionally, in January 2024, the initial run of the loan notifications for the spring 2024 semester was missing certain required data, such as dollar amounts and disbursement dates. This occurred because one of the queries within the PeopleSoft communication generation process failed to complete due to a data merge issue combined with a large data input resulting in blank information on certain of the notifications. Effect: The University did not timely/accurately send notifications to students regarding disbursements of federal aid in accordance with the above-noted compliance requirement. Recommendation: We recommend the University remain focused on this compliance requirement and enhance its monitoring of automated controls (such as through manual reviews) to ensure students are notified timely of disbursements and that all required data is included within each notification. Additionally, we recommend the University continue to monitor the quality control steps installed in award year 2024 to ensure compliance. Views of Responsible Officials/Management Response: See Management’s view and corrective action plan included at the end of this report.
Section III – Federal Award Findings and Questioned Costs Finding 2024-001: Disbursement Notification Federal Agency: Department of Education Program: Federal Direct Student Loans and Teacher Education Assistance for College and Higher Education Grants (TEACH Grants) Assistance Listing #: 84.268 and 84.379 Award #: Various Award Year: 2023-2024 Criteria: When Direct Loans or TEACH1 funds are being credited to a student’s account on behalf of the federal government, the institution must notify the student, or parent, in writing of 1) the date and amount of the disbursement; 2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and 3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement (a minimum of 14 or 30 days depending on confirmation process). Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student’s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition: During the 2024 award year, thirteen out of the twenty-five students tested in our sample of the disbursement compliance requirement noted above were not notified in compliance with the above-noted requirement. For eleven out of the thirteen exceptions, there was not timely notification of the disbursement of federal aid to the student in accordance with the timelines outlined in the compliance requirement above. For ten out of the eleven students, notification of disbursement was sent between 9 and 60 days subsequent to disbursement. For one out of the eleven students, management was unable to provide evidence of disbursement notification. For two out of the thirteen exceptions, the notifications sent to the students did not include the dollar amounts disbursed or the date of disbursement. For these two students, management was unable to provide evidence of subsequent disbursement notification. Questioned Costs: None. Cause: The University’s internal student information system, PeopleSoft, is configured to automatically send students notifications of federal aid loan disbursements within the required timelines. However, in April and May of 2024, a new staff member in the Office of Student Financial Aid and Scholarships erroneously checked a manual Peoplesoft flag, thereby preventing subsequent disbursement notifications. This mistake occurred because the electronic procedure the staff member followed was incomplete due to a missing screen shot which led to the inadvertent mistake. In June the University identified the issue through subsequent manual reviews and sent notifications to the affected students, although outside the required timelines. Additionally, in January 2024, the initial run of the loan notifications for the spring 2024 semester was missing certain required data, such as dollar amounts and disbursement dates. This occurred because one of the queries within the PeopleSoft communication generation process failed to complete due to a data merge issue combined with a large data input resulting in blank information on certain of the notifications. Effect: The University did not timely/accurately send notifications to students regarding disbursements of federal aid in accordance with the above-noted compliance requirement. Recommendation: We recommend the University remain focused on this compliance requirement and enhance its monitoring of automated controls (such as through manual reviews) to ensure students are notified timely of disbursements and that all required data is included within each notification. Additionally, we recommend the University continue to monitor the quality control steps installed in award year 2024 to ensure compliance. Views of Responsible Officials/Management Response: See Management’s view and corrective action plan included at the end of this report.
Section III – Federal Award Findings and Questioned Costs Finding 2024-001: Disbursement Notification Federal Agency: Department of Education Program: Federal Direct Student Loans and Teacher Education Assistance for College and Higher Education Grants (TEACH Grants) Assistance Listing #: 84.268 and 84.379 Award #: Various Award Year: 2023-2024 Criteria: When Direct Loans or TEACH1 funds are being credited to a student’s account on behalf of the federal government, the institution must notify the student, or parent, in writing of 1) the date and amount of the disbursement; 2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and 3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement (a minimum of 14 or 30 days depending on confirmation process). Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student’s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition: During the 2024 award year, thirteen out of the twenty-five students tested in our sample of the disbursement compliance requirement noted above were not notified in compliance with the above-noted requirement. For eleven out of the thirteen exceptions, there was not timely notification of the disbursement of federal aid to the student in accordance with the timelines outlined in the compliance requirement above. For ten out of the eleven students, notification of disbursement was sent between 9 and 60 days subsequent to disbursement. For one out of the eleven students, management was unable to provide evidence of disbursement notification. For two out of the thirteen exceptions, the notifications sent to the students did not include the dollar amounts disbursed or the date of disbursement. For these two students, management was unable to provide evidence of subsequent disbursement notification. Questioned Costs: None. Cause: The University’s internal student information system, PeopleSoft, is configured to automatically send students notifications of federal aid loan disbursements within the required timelines. However, in April and May of 2024, a new staff member in the Office of Student Financial Aid and Scholarships erroneously checked a manual Peoplesoft flag, thereby preventing subsequent disbursement notifications. This mistake occurred because the electronic procedure the staff member followed was incomplete due to a missing screen shot which led to the inadvertent mistake. In June the University identified the issue through subsequent manual reviews and sent notifications to the affected students, although outside the required timelines. Additionally, in January 2024, the initial run of the loan notifications for the spring 2024 semester was missing certain required data, such as dollar amounts and disbursement dates. This occurred because one of the queries within the PeopleSoft communication generation process failed to complete due to a data merge issue combined with a large data input resulting in blank information on certain of the notifications. Effect: The University did not timely/accurately send notifications to students regarding disbursements of federal aid in accordance with the above-noted compliance requirement. Recommendation: We recommend the University remain focused on this compliance requirement and enhance its monitoring of automated controls (such as through manual reviews) to ensure students are notified timely of disbursements and that all required data is included within each notification. Additionally, we recommend the University continue to monitor the quality control steps installed in award year 2024 to ensure compliance. Views of Responsible Officials/Management Response: See Management’s view and corrective action plan included at the end of this report.