Audit 40629

FY End
2022-06-30
Total Expended
$7.47M
Findings
40
Programs
6
Year: 2022 Accepted: 2023-05-08
Auditor: Sikich LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
45687 2022-003 Significant Deficiency Yes E
45688 2022-004 Material Weakness Yes E
45689 2022-005 Material Weakness Yes N
45690 2022-006 - - N
45691 2022-003 Significant Deficiency Yes E
45692 2022-004 Material Weakness Yes E
45693 2022-005 Material Weakness Yes N
45694 2022-006 - - N
45695 2022-003 Significant Deficiency Yes E
45696 2022-004 Material Weakness Yes E
45697 2022-005 Material Weakness Yes N
45698 2022-006 - - N
45699 2022-003 Significant Deficiency Yes E
45700 2022-004 Material Weakness Yes E
45701 2022-005 Material Weakness Yes N
45702 2022-006 - - N
45703 2022-003 Significant Deficiency Yes E
45704 2022-004 Material Weakness Yes E
45705 2022-005 Material Weakness Yes N
45706 2022-006 - - N
622129 2022-003 Significant Deficiency Yes E
622130 2022-004 Material Weakness Yes E
622131 2022-005 Material Weakness Yes N
622132 2022-006 - - N
622133 2022-003 Significant Deficiency Yes E
622134 2022-004 Material Weakness Yes E
622135 2022-005 Material Weakness Yes N
622136 2022-006 - - N
622137 2022-003 Significant Deficiency Yes E
622138 2022-004 Material Weakness Yes E
622139 2022-005 Material Weakness Yes N
622140 2022-006 - - N
622141 2022-003 Significant Deficiency Yes E
622142 2022-004 Material Weakness Yes E
622143 2022-005 Material Weakness Yes N
622144 2022-006 - - N
622145 2022-003 Significant Deficiency Yes E
622146 2022-004 Material Weakness Yes E
622147 2022-005 Material Weakness Yes N
622148 2022-006 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $2.72M Yes 4
84.063 Federal Pell Grant Program $1.15M Yes 4
84.033 Federal Work-Study Program $936,243 Yes 4
84.425 Education Stabilization Fund $105,943 Yes 0
84.038 Perkins Loan Program $75,937 Yes 4
84.007 Federal Supplemental Educational Opportunity Grants $53,686 Yes 4

Contacts

Name Title Type
UGX5THJHRW95 Sarah Mouch Auditee
2178545513 Ray Krouse Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Blackburn University dba Blackburn College and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The amount presented for the Federal Perkins Loans represents total loans outstanding at June 30, 2021, for which the U.S. Department of Education imposes continuing compliance requirements. Federal Perkins Loans advanced during the 2021-2022 award year amounted to $0. The outstanding balance of the Federal Perkins Loans is $0, net of an allowance of $75,937 at June 30, 2022.
Title: Other Information Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Blackburn University dba Blackburn College and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Blackburn University dba Blackburn College did not receive any federal insurance or federal noncash assistance and did not provide any amounts to sub-recipients.

Finding Details

Criteria: 34 CFR 682.201 (a) (1-2) notes, ?(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.? 34 CFR 690.62 states, ?The amount of a student?s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. Condition: Two of the 40 student files (5%) we examined, we noted the students were not properly awarded Direct loans. Further, we noted two of the 40 students (5%) were not properly awarded Pell. See Schedule of Findings and Questioned costs for chart/table. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-002. Statistical sampling was not used in making sample selections. Questioned Costs: $4,188. Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.164 (a)(1) states ?Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student?s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 23 of the 40 students in the sample (57.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-003. Statistical sampling was not used in making sample selections. Questioned Costs: N/A. Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.22 (a)(1) states ?When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.? 34 CFR 668.22 (e)(2) states, ?The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or?? 34 CFR 668.22(j) notes, ?(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in ? 668.173(b).? An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: The College did not timely and accurately complete refund calculations in the Fall. In review of the Fall 2021 calculations the number of days in the break was not calculated correctly, resulting in the incorrect days in all Fall 2021 return of Title IV funds calculations. As a result of the incorrect number of days, the amounts of Title IV amounts returned for all withdrawn students were incorrectly calculated for 6 out of the population of 11 (54.5%) Fall withdrawal calculations. A sample of Spring withdrawal calculations identified no errors. We consider this finding to be a material weakness in relation to Special Tests and Provisions and is a repeat finding shown in Section IV of this report as prior year finding 2021-004. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,439. Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect amounts returned by the College. The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented to timely and accurately return unearned aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 682.201 (a) (1-2) notes, ?(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.? 34 CFR 690.62 states, ?The amount of a student?s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. Condition: Two of the 40 student files (5%) we examined, we noted the students were not properly awarded Direct loans. Further, we noted two of the 40 students (5%) were not properly awarded Pell. See Schedule of Findings and Questioned costs for chart/table. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-002. Statistical sampling was not used in making sample selections. Questioned Costs: $4,188. Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.164 (a)(1) states ?Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student?s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 23 of the 40 students in the sample (57.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-003. Statistical sampling was not used in making sample selections. Questioned Costs: N/A. Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.22 (a)(1) states ?When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.? 34 CFR 668.22 (e)(2) states, ?The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or?? 34 CFR 668.22(j) notes, ?(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in ? 668.173(b).? An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: The College did not timely and accurately complete refund calculations in the Fall. In review of the Fall 2021 calculations the number of days in the break was not calculated correctly, resulting in the incorrect days in all Fall 2021 return of Title IV funds calculations. As a result of the incorrect number of days, the amounts of Title IV amounts returned for all withdrawn students were incorrectly calculated for 6 out of the population of 11 (54.5%) Fall withdrawal calculations. A sample of Spring withdrawal calculations identified no errors. We consider this finding to be a material weakness in relation to Special Tests and Provisions and is a repeat finding shown in Section IV of this report as prior year finding 2021-004. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,439. Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect amounts returned by the College. The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented to timely and accurately return unearned aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 682.201 (a) (1-2) notes, ?(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.? 34 CFR 690.62 states, ?The amount of a student?s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. Condition: Two of the 40 student files (5%) we examined, we noted the students were not properly awarded Direct loans. Further, we noted two of the 40 students (5%) were not properly awarded Pell. See Schedule of Findings and Questioned costs for chart/table. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-002. Statistical sampling was not used in making sample selections. Questioned Costs: $4,188. Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.164 (a)(1) states ?Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student?s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 23 of the 40 students in the sample (57.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-003. Statistical sampling was not used in making sample selections. Questioned Costs: N/A. Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.22 (a)(1) states ?When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.? 34 CFR 668.22 (e)(2) states, ?The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or?? 34 CFR 668.22(j) notes, ?(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in ? 668.173(b).? An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: The College did not timely and accurately complete refund calculations in the Fall. In review of the Fall 2021 calculations the number of days in the break was not calculated correctly, resulting in the incorrect days in all Fall 2021 return of Title IV funds calculations. As a result of the incorrect number of days, the amounts of Title IV amounts returned for all withdrawn students were incorrectly calculated for 6 out of the population of 11 (54.5%) Fall withdrawal calculations. A sample of Spring withdrawal calculations identified no errors. We consider this finding to be a material weakness in relation to Special Tests and Provisions and is a repeat finding shown in Section IV of this report as prior year finding 2021-004. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,439. Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect amounts returned by the College. The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented to timely and accurately return unearned aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 682.201 (a) (1-2) notes, ?(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.? 34 CFR 690.62 states, ?The amount of a student?s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. Condition: Two of the 40 student files (5%) we examined, we noted the students were not properly awarded Direct loans. Further, we noted two of the 40 students (5%) were not properly awarded Pell. See Schedule of Findings and Questioned costs for chart/table. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-002. Statistical sampling was not used in making sample selections. Questioned Costs: $4,188. Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.164 (a)(1) states ?Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student?s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 23 of the 40 students in the sample (57.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-003. Statistical sampling was not used in making sample selections. Questioned Costs: N/A. Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.22 (a)(1) states ?When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.? 34 CFR 668.22 (e)(2) states, ?The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or?? 34 CFR 668.22(j) notes, ?(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in ? 668.173(b).? An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: The College did not timely and accurately complete refund calculations in the Fall. In review of the Fall 2021 calculations the number of days in the break was not calculated correctly, resulting in the incorrect days in all Fall 2021 return of Title IV funds calculations. As a result of the incorrect number of days, the amounts of Title IV amounts returned for all withdrawn students were incorrectly calculated for 6 out of the population of 11 (54.5%) Fall withdrawal calculations. A sample of Spring withdrawal calculations identified no errors. We consider this finding to be a material weakness in relation to Special Tests and Provisions and is a repeat finding shown in Section IV of this report as prior year finding 2021-004. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,439. Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect amounts returned by the College. The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented to timely and accurately return unearned aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 682.201 (a) (1-2) notes, ?(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.? 34 CFR 690.62 states, ?The amount of a student?s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. Condition: Two of the 40 student files (5%) we examined, we noted the students were not properly awarded Direct loans. Further, we noted two of the 40 students (5%) were not properly awarded Pell. See Schedule of Findings and Questioned costs for chart/table. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-002. Statistical sampling was not used in making sample selections. Questioned Costs: $4,188. Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.164 (a)(1) states ?Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student?s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 23 of the 40 students in the sample (57.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-003. Statistical sampling was not used in making sample selections. Questioned Costs: N/A. Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.22 (a)(1) states ?When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.? 34 CFR 668.22 (e)(2) states, ?The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or?? 34 CFR 668.22(j) notes, ?(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in ? 668.173(b).? An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: The College did not timely and accurately complete refund calculations in the Fall. In review of the Fall 2021 calculations the number of days in the break was not calculated correctly, resulting in the incorrect days in all Fall 2021 return of Title IV funds calculations. As a result of the incorrect number of days, the amounts of Title IV amounts returned for all withdrawn students were incorrectly calculated for 6 out of the population of 11 (54.5%) Fall withdrawal calculations. A sample of Spring withdrawal calculations identified no errors. We consider this finding to be a material weakness in relation to Special Tests and Provisions and is a repeat finding shown in Section IV of this report as prior year finding 2021-004. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,439. Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect amounts returned by the College. The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented to timely and accurately return unearned aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 682.201 (a) (1-2) notes, ?(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.? 34 CFR 690.62 states, ?The amount of a student?s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. Condition: Two of the 40 student files (5%) we examined, we noted the students were not properly awarded Direct loans. Further, we noted two of the 40 students (5%) were not properly awarded Pell. See Schedule of Findings and Questioned costs for chart/table. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-002. Statistical sampling was not used in making sample selections. Questioned Costs: $4,188. Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.164 (a)(1) states ?Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student?s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 23 of the 40 students in the sample (57.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-003. Statistical sampling was not used in making sample selections. Questioned Costs: N/A. Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.22 (a)(1) states ?When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.? 34 CFR 668.22 (e)(2) states, ?The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or?? 34 CFR 668.22(j) notes, ?(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in ? 668.173(b).? An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: The College did not timely and accurately complete refund calculations in the Fall. In review of the Fall 2021 calculations the number of days in the break was not calculated correctly, resulting in the incorrect days in all Fall 2021 return of Title IV funds calculations. As a result of the incorrect number of days, the amounts of Title IV amounts returned for all withdrawn students were incorrectly calculated for 6 out of the population of 11 (54.5%) Fall withdrawal calculations. A sample of Spring withdrawal calculations identified no errors. We consider this finding to be a material weakness in relation to Special Tests and Provisions and is a repeat finding shown in Section IV of this report as prior year finding 2021-004. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,439. Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect amounts returned by the College. The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented to timely and accurately return unearned aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 682.201 (a) (1-2) notes, ?(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.? 34 CFR 690.62 states, ?The amount of a student?s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. Condition: Two of the 40 student files (5%) we examined, we noted the students were not properly awarded Direct loans. Further, we noted two of the 40 students (5%) were not properly awarded Pell. See Schedule of Findings and Questioned costs for chart/table. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-002. Statistical sampling was not used in making sample selections. Questioned Costs: $4,188. Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.164 (a)(1) states ?Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student?s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 23 of the 40 students in the sample (57.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-003. Statistical sampling was not used in making sample selections. Questioned Costs: N/A. Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.22 (a)(1) states ?When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.? 34 CFR 668.22 (e)(2) states, ?The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or?? 34 CFR 668.22(j) notes, ?(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in ? 668.173(b).? An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: The College did not timely and accurately complete refund calculations in the Fall. In review of the Fall 2021 calculations the number of days in the break was not calculated correctly, resulting in the incorrect days in all Fall 2021 return of Title IV funds calculations. As a result of the incorrect number of days, the amounts of Title IV amounts returned for all withdrawn students were incorrectly calculated for 6 out of the population of 11 (54.5%) Fall withdrawal calculations. A sample of Spring withdrawal calculations identified no errors. We consider this finding to be a material weakness in relation to Special Tests and Provisions and is a repeat finding shown in Section IV of this report as prior year finding 2021-004. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,439. Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect amounts returned by the College. The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented to timely and accurately return unearned aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 682.201 (a) (1-2) notes, ?(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.? 34 CFR 690.62 states, ?The amount of a student?s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. Condition: Two of the 40 student files (5%) we examined, we noted the students were not properly awarded Direct loans. Further, we noted two of the 40 students (5%) were not properly awarded Pell. See Schedule of Findings and Questioned costs for chart/table. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-002. Statistical sampling was not used in making sample selections. Questioned Costs: $4,188. Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.164 (a)(1) states ?Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student?s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 23 of the 40 students in the sample (57.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-003. Statistical sampling was not used in making sample selections. Questioned Costs: N/A. Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.22 (a)(1) states ?When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.? 34 CFR 668.22 (e)(2) states, ?The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or?? 34 CFR 668.22(j) notes, ?(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in ? 668.173(b).? An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: The College did not timely and accurately complete refund calculations in the Fall. In review of the Fall 2021 calculations the number of days in the break was not calculated correctly, resulting in the incorrect days in all Fall 2021 return of Title IV funds calculations. As a result of the incorrect number of days, the amounts of Title IV amounts returned for all withdrawn students were incorrectly calculated for 6 out of the population of 11 (54.5%) Fall withdrawal calculations. A sample of Spring withdrawal calculations identified no errors. We consider this finding to be a material weakness in relation to Special Tests and Provisions and is a repeat finding shown in Section IV of this report as prior year finding 2021-004. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,439. Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect amounts returned by the College. The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented to timely and accurately return unearned aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 682.201 (a) (1-2) notes, ?(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.? 34 CFR 690.62 states, ?The amount of a student?s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. Condition: Two of the 40 student files (5%) we examined, we noted the students were not properly awarded Direct loans. Further, we noted two of the 40 students (5%) were not properly awarded Pell. See Schedule of Findings and Questioned costs for chart/table. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-002. Statistical sampling was not used in making sample selections. Questioned Costs: $4,188. Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.164 (a)(1) states ?Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student?s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 23 of the 40 students in the sample (57.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-003. Statistical sampling was not used in making sample selections. Questioned Costs: N/A. Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.22 (a)(1) states ?When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.? 34 CFR 668.22 (e)(2) states, ?The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or?? 34 CFR 668.22(j) notes, ?(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in ? 668.173(b).? An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: The College did not timely and accurately complete refund calculations in the Fall. In review of the Fall 2021 calculations the number of days in the break was not calculated correctly, resulting in the incorrect days in all Fall 2021 return of Title IV funds calculations. As a result of the incorrect number of days, the amounts of Title IV amounts returned for all withdrawn students were incorrectly calculated for 6 out of the population of 11 (54.5%) Fall withdrawal calculations. A sample of Spring withdrawal calculations identified no errors. We consider this finding to be a material weakness in relation to Special Tests and Provisions and is a repeat finding shown in Section IV of this report as prior year finding 2021-004. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,439. Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect amounts returned by the College. The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented to timely and accurately return unearned aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 682.201 (a) (1-2) notes, ?(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.? 34 CFR 690.62 states, ?The amount of a student?s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. Condition: Two of the 40 student files (5%) we examined, we noted the students were not properly awarded Direct loans. Further, we noted two of the 40 students (5%) were not properly awarded Pell. See Schedule of Findings and Questioned costs for chart/table. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-002. Statistical sampling was not used in making sample selections. Questioned Costs: $4,188. Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.164 (a)(1) states ?Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student?s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 23 of the 40 students in the sample (57.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2021-003. Statistical sampling was not used in making sample selections. Questioned Costs: N/A. Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: 34 CFR 668.22 (a)(1) states ?When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.? 34 CFR 668.22 (e)(2) states, ?The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or?? 34 CFR 668.22(j) notes, ?(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in ? 668.173(b).? An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: The College did not timely and accurately complete refund calculations in the Fall. In review of the Fall 2021 calculations the number of days in the break was not calculated correctly, resulting in the incorrect days in all Fall 2021 return of Title IV funds calculations. As a result of the incorrect number of days, the amounts of Title IV amounts returned for all withdrawn students were incorrectly calculated for 6 out of the population of 11 (54.5%) Fall withdrawal calculations. A sample of Spring withdrawal calculations identified no errors. We consider this finding to be a material weakness in relation to Special Tests and Provisions and is a repeat finding shown in Section IV of this report as prior year finding 2021-004. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,439. Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect amounts returned by the College. The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented to timely and accurately return unearned aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.