FAC Explorer

Audit 38070

FY End
2022-06-30
Total Expended
$5.74M
Findings
20
Programs
11
Organization: Lyon College (AR)
Year: 2022 Accepted: 2023-03-13
Auditor: Williams-Keepers LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35902 2022-002 Significant Deficiency - P
35903 2022-003 Significant Deficiency - E
35904 2022-002 Significant Deficiency - P
35905 2022-003 Significant Deficiency - E
35906 2022-002 Significant Deficiency - P
35907 2022-003 Significant Deficiency - E
35908 2022-002 Significant Deficiency - P
35909 2022-003 Significant Deficiency - E
35910 2022-002 Significant Deficiency - P
35911 2022-003 Significant Deficiency - E
612344 2022-002 Significant Deficiency - P
612345 2022-003 Significant Deficiency - E
612346 2022-002 Significant Deficiency - P
612347 2022-003 Significant Deficiency - E
612348 2022-002 Significant Deficiency - P
612349 2022-003 Significant Deficiency - E
612350 2022-002 Significant Deficiency - P
612351 2022-003 Significant Deficiency - E
612352 2022-002 Significant Deficiency - P
612353 2022-003 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $3.07M Yes 2
84.063 Federal Pell Grant Program $1.05M Yes 2
84.047 Trio_upward Bound $464,403 - 0
84.033 Federal Work-Study Program $102,778 Yes 2
84.425 Education Stabilization Fund $84,702 - 0
93.859 Biomedical Research and Research Training $79,607 - 0
84.007 Federal Supplemental Educational Opportunity Grants $57,712 Yes 2
43.008 Education $14,706 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $7,544 Yes 2
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $5,057 - 0
15.808 U.s. Geological Survey_ Research and Data Collection $800 - 0

Contacts

Name Title Type
LQ5VVQY25V39 Joe Botana Auditee
8706984622 Amanda Schultz Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Lyon College (the College) and is presented on the accrual basis of accounting. 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. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U. S. generally accepted accounting principles they are not reported in the Colleges statement of activities as expenses or financial aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the College for the year and are not reportable as transactions in the Colleges financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. FEDERAL DIRECT STUDENT LOANS (84.268) - Balances outstanding at the end of the audit period were 3069385.
Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Lyon College (the College) and is presented on the accrual basis of accounting. 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. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U. S. generally accepted accounting principles they are not reported in the Colleges statement of activities as expenses or financial aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the College for the year and are not reportable as transactions in the Colleges financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. As of June 30, 2022, the College had $704 outstanding related to the Federal Perkins Loan Program. However, during the year ended June 30, 2022, the College began liquidating its loan portfolio and revolving fund. As of the date of this report, the College has assigned any outstanding loans to the Department of Education and performed all end-of-participation procedures to close out the Colleges participation in the program.

Finding Details

Finding 2022-002
Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-003
Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-002
Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-003
Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-002
Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-003
Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-002
Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-003
Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-002
Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-003
Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-002
Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-003
Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-002
Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-003
Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-002
Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-003
Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-002
Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-003
Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-002
Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.
Finding 2022-003
Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.