Audit 36189

FY End
2022-09-30
Total Expended
$11.14M
Findings
8
Programs
14
Year: 2022 Accepted: 2023-04-12

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
34739 2022-002 - - N
34740 2022-003 Significant Deficiency - N
34741 2022-003 Significant Deficiency - N
34742 2022-003 Significant Deficiency - N
611181 2022-002 - - N
611182 2022-003 Significant Deficiency - N
611183 2022-003 Significant Deficiency - N
611184 2022-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $6.93M Yes 0
84.063 Federal Pell Grant Program $2.14M Yes 2
84.031 Higher Education_institutional Aid $1.41M - 0
43.008 Education $302,010 - 0
84.048 Career and Technical Education -- Basic Grants to States $187,192 - 0
84.007 Federal Supplemental Educational Opportunity Grants $69,500 Yes 1
47.076 Education and Human Resources $32,648 - 0
17.258 Wia Adult Program $27,182 - 0
17.259 Wia Youth Activities $12,395 - 0
23.002 Appalachian Area Development $10,501 - 0
84.002 Adult Education - Basic Grants to States $9,536 - 0
84.033 Federal Work-Study Program $8,907 Yes 1
17.278 Wia Dislocated Worker Formula Grants $5,565 - 0
12.600 Community Investment $1,120 - 0

Contacts

Name Title Type
Y6RMRVLNFZK1 Akeem Alexander Auditee
2565513130 Jeremy Blackburn Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The College has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the College and agencies and departments of the federal government and all subawards to the College by nonfederal organizations pursuant to federal grants, contracts and similar agreements. The awards are classified into Type A and Type B categories in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Programs classified as Type A are as follows:Student Financial Assistance ProgramsHigher Education Emergency Relief Fund De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of J.F. Drake State Community and Technical College (the College) under programs of the federal government for the year ended September 30, 2022. 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). 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.

Finding Details

REFERENCE 2022-002 ? Student Financial Assistance ? Return of Title IV Funds Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s) Federal Pell Grant Assistance Listing Number(s): 84.063 Award Year: July 2021 through June 20, 2022 CRITERIA: 34 CFR part 668 establishes rules governing the student withdrawal process including the return of unearned Title IV aid within 45 days of a student?s withdrawal. CONDITION: Through our Return of Title IV Funds testing, we noted 1 out of 15 selections for which the students began attendance but subsequently withdrew and their unearned title IV funds were not returned within 45 days of the withdrawal date. QUESTIONED COSTS: $668 CAUSE/EFFECT: The incorrect withdrawal date was inadvertently entered into Banner by admissions when they updated the withdrawal code. They system was showing a withdrawal date over the 60% threshold, but the withdrawal form the student and SFA office signed was prior to the 60% threshold date. As such, the required return of funds was not calculated timely and the College was not in compliance with the Return of Title IV Funds requirements. RECOMMENDATION: The auditor recommends the College enhance its controls and incorporate multiple individuals in the process to ensure that Title IV refunds are calculated and made timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess controls, review these accounts and implement controls to ensure that timely calculations and refunds are made.
REFERENCE: 2022-003 ? Student Financial Assistance ? Enrollment Reporting Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s): Federal Pell Grant; Federal Work-Study Federal Supplemental Educational Opportunity Grants Assistance Listing Number(s): 84.063; 84.033; 84.007 Award Year: July 2021 through June 20, 2022 CRITERIA: Schools are required to confirm and report to the National Student Loan Data System (?NSLDS?) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower?s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: The certification date for all records tested, with the exception of one, was not within 60 days of the change in enrollment. A previous employee mistakenly submitted a previous semesters data to the National Student Clearinghouse, which had old data. As a result, the National Student Clearinghouse had to rerun all files submitted from the Fall of 2020 end of term through April 2022 to rebuild the incorrect student records. As a result of this, the dates were not within the required timeframe. QUESTIONED COSTS: None. CAUSE/EFFECT: The office of Student Financial Aid relies on the National Student Clearinghouse to report enrollment changes to the NSLDS. The effective administration of Title IV funds could be impacted when changes in students? enrollment are not reported timely and accurately. The accuracy of enrollment information is important, as a student's enrollment status determines eligibility for in-school status, deferment, grace period, and repayments. Due to the inaccurate submission of the student files, the enrollment reporting dates were not within the required timeframe. RECOMMENDATION: We recommend the College enhance its controls and revise its procedures to ensure that not only are status changes reported to the Clearinghouse, but also that the enrollment changes are reported appropriately from the National Student Clearinghouse to NSLDS. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess and implement controls to ensure that timely and accurate enrollment reporting is made.
REFERENCE: 2022-003 ? Student Financial Assistance ? Enrollment Reporting Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s): Federal Pell Grant; Federal Work-Study Federal Supplemental Educational Opportunity Grants Assistance Listing Number(s): 84.063; 84.033; 84.007 Award Year: July 2021 through June 20, 2022 CRITERIA: Schools are required to confirm and report to the National Student Loan Data System (?NSLDS?) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower?s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: The certification date for all records tested, with the exception of one, was not within 60 days of the change in enrollment. A previous employee mistakenly submitted a previous semesters data to the National Student Clearinghouse, which had old data. As a result, the National Student Clearinghouse had to rerun all files submitted from the Fall of 2020 end of term through April 2022 to rebuild the incorrect student records. As a result of this, the dates were not within the required timeframe. QUESTIONED COSTS: None. CAUSE/EFFECT: The office of Student Financial Aid relies on the National Student Clearinghouse to report enrollment changes to the NSLDS. The effective administration of Title IV funds could be impacted when changes in students? enrollment are not reported timely and accurately. The accuracy of enrollment information is important, as a student's enrollment status determines eligibility for in-school status, deferment, grace period, and repayments. Due to the inaccurate submission of the student files, the enrollment reporting dates were not within the required timeframe. RECOMMENDATION: We recommend the College enhance its controls and revise its procedures to ensure that not only are status changes reported to the Clearinghouse, but also that the enrollment changes are reported appropriately from the National Student Clearinghouse to NSLDS. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess and implement controls to ensure that timely and accurate enrollment reporting is made.
REFERENCE: 2022-003 ? Student Financial Assistance ? Enrollment Reporting Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s): Federal Pell Grant; Federal Work-Study Federal Supplemental Educational Opportunity Grants Assistance Listing Number(s): 84.063; 84.033; 84.007 Award Year: July 2021 through June 20, 2022 CRITERIA: Schools are required to confirm and report to the National Student Loan Data System (?NSLDS?) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower?s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: The certification date for all records tested, with the exception of one, was not within 60 days of the change in enrollment. A previous employee mistakenly submitted a previous semesters data to the National Student Clearinghouse, which had old data. As a result, the National Student Clearinghouse had to rerun all files submitted from the Fall of 2020 end of term through April 2022 to rebuild the incorrect student records. As a result of this, the dates were not within the required timeframe. QUESTIONED COSTS: None. CAUSE/EFFECT: The office of Student Financial Aid relies on the National Student Clearinghouse to report enrollment changes to the NSLDS. The effective administration of Title IV funds could be impacted when changes in students? enrollment are not reported timely and accurately. The accuracy of enrollment information is important, as a student's enrollment status determines eligibility for in-school status, deferment, grace period, and repayments. Due to the inaccurate submission of the student files, the enrollment reporting dates were not within the required timeframe. RECOMMENDATION: We recommend the College enhance its controls and revise its procedures to ensure that not only are status changes reported to the Clearinghouse, but also that the enrollment changes are reported appropriately from the National Student Clearinghouse to NSLDS. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess and implement controls to ensure that timely and accurate enrollment reporting is made.
REFERENCE 2022-002 ? Student Financial Assistance ? Return of Title IV Funds Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s) Federal Pell Grant Assistance Listing Number(s): 84.063 Award Year: July 2021 through June 20, 2022 CRITERIA: 34 CFR part 668 establishes rules governing the student withdrawal process including the return of unearned Title IV aid within 45 days of a student?s withdrawal. CONDITION: Through our Return of Title IV Funds testing, we noted 1 out of 15 selections for which the students began attendance but subsequently withdrew and their unearned title IV funds were not returned within 45 days of the withdrawal date. QUESTIONED COSTS: $668 CAUSE/EFFECT: The incorrect withdrawal date was inadvertently entered into Banner by admissions when they updated the withdrawal code. They system was showing a withdrawal date over the 60% threshold, but the withdrawal form the student and SFA office signed was prior to the 60% threshold date. As such, the required return of funds was not calculated timely and the College was not in compliance with the Return of Title IV Funds requirements. RECOMMENDATION: The auditor recommends the College enhance its controls and incorporate multiple individuals in the process to ensure that Title IV refunds are calculated and made timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess controls, review these accounts and implement controls to ensure that timely calculations and refunds are made.
REFERENCE: 2022-003 ? Student Financial Assistance ? Enrollment Reporting Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s): Federal Pell Grant; Federal Work-Study Federal Supplemental Educational Opportunity Grants Assistance Listing Number(s): 84.063; 84.033; 84.007 Award Year: July 2021 through June 20, 2022 CRITERIA: Schools are required to confirm and report to the National Student Loan Data System (?NSLDS?) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower?s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: The certification date for all records tested, with the exception of one, was not within 60 days of the change in enrollment. A previous employee mistakenly submitted a previous semesters data to the National Student Clearinghouse, which had old data. As a result, the National Student Clearinghouse had to rerun all files submitted from the Fall of 2020 end of term through April 2022 to rebuild the incorrect student records. As a result of this, the dates were not within the required timeframe. QUESTIONED COSTS: None. CAUSE/EFFECT: The office of Student Financial Aid relies on the National Student Clearinghouse to report enrollment changes to the NSLDS. The effective administration of Title IV funds could be impacted when changes in students? enrollment are not reported timely and accurately. The accuracy of enrollment information is important, as a student's enrollment status determines eligibility for in-school status, deferment, grace period, and repayments. Due to the inaccurate submission of the student files, the enrollment reporting dates were not within the required timeframe. RECOMMENDATION: We recommend the College enhance its controls and revise its procedures to ensure that not only are status changes reported to the Clearinghouse, but also that the enrollment changes are reported appropriately from the National Student Clearinghouse to NSLDS. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess and implement controls to ensure that timely and accurate enrollment reporting is made.
REFERENCE: 2022-003 ? Student Financial Assistance ? Enrollment Reporting Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s): Federal Pell Grant; Federal Work-Study Federal Supplemental Educational Opportunity Grants Assistance Listing Number(s): 84.063; 84.033; 84.007 Award Year: July 2021 through June 20, 2022 CRITERIA: Schools are required to confirm and report to the National Student Loan Data System (?NSLDS?) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower?s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: The certification date for all records tested, with the exception of one, was not within 60 days of the change in enrollment. A previous employee mistakenly submitted a previous semesters data to the National Student Clearinghouse, which had old data. As a result, the National Student Clearinghouse had to rerun all files submitted from the Fall of 2020 end of term through April 2022 to rebuild the incorrect student records. As a result of this, the dates were not within the required timeframe. QUESTIONED COSTS: None. CAUSE/EFFECT: The office of Student Financial Aid relies on the National Student Clearinghouse to report enrollment changes to the NSLDS. The effective administration of Title IV funds could be impacted when changes in students? enrollment are not reported timely and accurately. The accuracy of enrollment information is important, as a student's enrollment status determines eligibility for in-school status, deferment, grace period, and repayments. Due to the inaccurate submission of the student files, the enrollment reporting dates were not within the required timeframe. RECOMMENDATION: We recommend the College enhance its controls and revise its procedures to ensure that not only are status changes reported to the Clearinghouse, but also that the enrollment changes are reported appropriately from the National Student Clearinghouse to NSLDS. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess and implement controls to ensure that timely and accurate enrollment reporting is made.
REFERENCE: 2022-003 ? Student Financial Assistance ? Enrollment Reporting Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s): Federal Pell Grant; Federal Work-Study Federal Supplemental Educational Opportunity Grants Assistance Listing Number(s): 84.063; 84.033; 84.007 Award Year: July 2021 through June 20, 2022 CRITERIA: Schools are required to confirm and report to the National Student Loan Data System (?NSLDS?) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower?s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: The certification date for all records tested, with the exception of one, was not within 60 days of the change in enrollment. A previous employee mistakenly submitted a previous semesters data to the National Student Clearinghouse, which had old data. As a result, the National Student Clearinghouse had to rerun all files submitted from the Fall of 2020 end of term through April 2022 to rebuild the incorrect student records. As a result of this, the dates were not within the required timeframe. QUESTIONED COSTS: None. CAUSE/EFFECT: The office of Student Financial Aid relies on the National Student Clearinghouse to report enrollment changes to the NSLDS. The effective administration of Title IV funds could be impacted when changes in students? enrollment are not reported timely and accurately. The accuracy of enrollment information is important, as a student's enrollment status determines eligibility for in-school status, deferment, grace period, and repayments. Due to the inaccurate submission of the student files, the enrollment reporting dates were not within the required timeframe. RECOMMENDATION: We recommend the College enhance its controls and revise its procedures to ensure that not only are status changes reported to the Clearinghouse, but also that the enrollment changes are reported appropriately from the National Student Clearinghouse to NSLDS. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess and implement controls to ensure that timely and accurate enrollment reporting is made.