Audit 409186

Reporting U.S. Department of Education Student Financial Aid Cluster: ALN: 84.063 Pell Grant ALN: 84.007 Supplemental Educational Opportunity Grant ALN 84.033 Federal Work Study ALN 84.038 Federal Perkins Loan Program ALN 84.268 Federal Direct Student Loans Criteria: The Fiscal Operations Report and Application to Participate (FISAP) is due by October 1st of each year. Part II Section E requires tuition and fee revenue be reported. Part II Section F requires the number of eligible aid applicants enrolled at the University for the reporting period who applied for financial aid be reported. Condition: The amounts reported for tuition and fee revenue in Part II Section E was understated by $335,611, representing fees collected during the reporting period. The amounts reported for Section F did not report accurate information as it was not available. Context: The University mistakenly omitted the fee revenue from the FISAP report. The University converted software systems during the year, resulting in reporting problems for Part II Section F. Effect: The information reported in the FISAP for Part II Sections E and F is not accurate. Questioned Costs: None. Cause: The University made an error in reporting the tuition and fee income. Part II Section F information supplied in the new software, Jenzabar, did not work because all of the information was not available in the module used to generate the information for this part of the FISAP. The Part F information was obtained from the Jenzabar Financial Aid module. Auditor Recommendation: We recommend the University enhance procedures for reporting to ensure accuracy of reported information. University Response: The University went through a software conversion at the beginning of the fiscal year and due to the timing of the reporting and familiarity of the new software this was unintentionally omitted from the report. The creation of a procedure documenting where information is gathered from and a review process will ensure accuracy of reported information.

Eligibility U.S. Department of Education Student Financial Aid Cluster: ALN: 84.063 Pell Grant ALN: 84.007 Supplemental Educational Opportunity Grant ALN 84.033 Federal Work Study ALN 84.038 Federal Perkins Loan Program ALN 84.268 Federal Direct Student Loans Criteria: The 2024-2025 Federal Student Aid Handbook, Vol 2, Chapter 3, states that the Financial Aid Administrator must be supported by an adequate number of professional and clerical personnel. The number of staff that is adequate depends on the number of students aided, the number and types of programs in which the school participates, the number of applicants evaluated and processed, the number of funds administered, and the type of financial data delivery system the school uses. Internal controls that pertain to Eligibility include the accuracy and completeness of data used to determine eligibility requirements, which are reviewed and agreed to support as necessary by staff and reviewed by a knowledgeable supervisor. Manual checklists or automated processes used when making eligibility determinations are reviewed and approved by a knowledgeable supervisor. Calculations of amounts to be received for or on behalf of participants are reperformed by a knowledgeable supervisor. Segregation of duties exists between those determining a participant’s eligibility and those reviewing/approving eligibility. Condition: During the audit period, an additional staff member was hired to assist the Financial Aid Director. However, the awarding of financial aid award packages completed by the Financial Aid Director were not reviewed. Context: The University did hire a financial aid staff member to assist with packaging; however, the Financial Aid Director continued to handle the majority of the workload. The staff member subsequently left the University following the June 20, 2025 year-end. Effect: With only one staff member performing the packaging process, this does not provide adequate internal controls over the Eligibility requirement. Questioned Costs: None. Cause: The University has made efforts to hire and train support staff for the Financial Aid Director. However, no alternative control procedures were implemented to address the issue of having only one person involved with the awarding process. Auditor Recommendation: We recommend the University enhance the system of internal control for Eligibility and award packaging determinations. University Response: The University understands the need to have adequate staffing in financial aid that allows for a separate review of financial aid packaging. The University is looking at the options of both hiring staff and working with a firm that provides financial aid assistance in order to enhance the system of internal controls for determination of financial aid eligibility and to review financial aid packaging prepared by staff.

Cash Management U.S. Department of Education Student Financial Aid Cluster: ALN: 84.063 Pell Grant ALN: 84.007 Supplemental Educational Opportunity Grant ALN 84.033 Federal Work Study ALN 84.038 Federal Perkins Loan Program ALN 84.268 Federal Direct Student Loans Criteria: The Department of Education provides funds to an institution under the advance, reimbursement, or heightened cash monitoring payment methods. With the advance payment method, it permits the institution to draw down Title IV funds prior to disbursing funds to eligible students and parents. The institution’s request must not exceed the amount immediately needed to disburse funds to students or parents. A disbursement of funds occurs on the date an institution credits a student’s account or pays a student or parent directly with either SFA funds or institutional funds. The institution must make the disbursement as soon as administratively feasible, but no later than 3 business days following the receipt of funds. The Department of Education considers excess cash to be any amount of Title IV funds that an institution does not disburse to students or parents by the end of the third business day. The Department of Education allows an institution to retain, for up to seven days, excess cash that does not exceed one percent of the total amount of funds drawn by the institution in the prior award year. The institution must return to the Department of Education any excess cash over the tolerable amount (one percent) and any amount remaining after the tolerance period (seven days). Questioned costs would be those in excess of the one percent threshold. Condition: The University drew $1,334,720 for Direct Loans on September 12, 2024, but drew down too much. They were notified by the Department of Education of the overdrawn portion, and a refund was issued on October 25, 2024, for $75,428. The University held excess cash for longer than the allowed time frame. Context: Funds are drawn from the Department of Education periodically throughout the year. This was the only instance of drawing in advance and not returning the funds timely to Department of Education. Effect: The University did not follow cash management requirements as noted in the criteria. Questioned Costs: Questioned costs are those that were reported by Department of Education of $75,428. Cause: The University converted from Banner to Jenzabar around the time this draw occurred. At this time the Student Financial Aid activity was in Jenzabar, but the other departments were still using Banner modules. The amount drawn came from totals in Banner and not Jenzabar or what had been reported as disbursed in COD (Common Origination and Disbursement system). Auditor Recommendation: We recommend the University return funds to the Department of Education as noted in the timeframe established by the Department of Education. University Response: The University is committed to following Federal Guidelines. During the fall the University went through a software conversion process, creating a downtime of two weeks. Due to the need to be able to refund students, funds were drawn directly after census date to cover the refunds using information from the prior system. Reconciliations were unable to be completed in the normal timeframe due to the availability of data.