Audit 54887

FY End
2022-06-30
Total Expended
$21.59M
Findings
14
Programs
6
Organization: La Roche University (PA)
Year: 2022 Accepted: 2023-03-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
59531 2022-001 Significant Deficiency Yes N
59532 2022-002 - - N
59533 2022-003 Significant Deficiency - N
59534 2022-003 Significant Deficiency - N
59535 2022-003 Significant Deficiency - N
59536 2022-003 Significant Deficiency - N
59537 2022-003 Significant Deficiency - N
635973 2022-001 Significant Deficiency Yes N
635974 2022-002 - - N
635975 2022-003 Significant Deficiency - N
635976 2022-003 Significant Deficiency - N
635977 2022-003 Significant Deficiency - N
635978 2022-003 Significant Deficiency - N
635979 2022-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $15.28M Yes 3
84.425 Covid-19 Education Stabilization Fund $2.47M Yes 0
84.063 Federal Pell Grant Program $1.52M Yes 1
84.038 Federal Perkins Loan Program $362,197 Yes 1
84.007 Federal Supplemental Education Opportunity Grants $122,900 Yes 1
84.033 Federal Work-Study Program $89,031 Yes 1

Contacts

Name Title Type
MJGBD8AMDVT4 James Walsh Auditee
4125361056 Susan Maloney Auditor
No contacts on file

Notes to SEFA

Title: Student Financial Assistance and Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) presents the expenditures of all federal awards programs of La Roche University (the University) using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The total loans granted under the Federal Direct Student Loan Program, which were not made by the University but were received by its students, were approximately $15,280,000 for the year ended June 30, 2022.The total loans outstanding under the Federal Perkins Loan Program at June 30, 2022 were approximately $294,000. Federal awards expenditures include loans administered under the Federal Direct Student Loan Program during the year ended June 30, 2022, and Federal Perkins Loans outstanding as of June 30, 2021.
Title: Relationship to Basic Financial Statements Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) presents the expenditures of all federal awards programs of La Roche University (the University) using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows of the University.

Finding Details

Finding 2022-001: Significant Deficiency Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency: U.S. Department of Education Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Repeat of Prior Year Finding 2021-002 Criteria: Title IV regulations (34 CFR Section 685.309(b)) require that upon receipt of an enrollment report from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the institution and who received a loan under Title IV of the Act has changed his or her permanent address. Condition/Context: The University did not notify the National Student Loan Data System (NSLDS) in a timely manner for 3 students with status changes in our sample of 25 students. The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The University's procedures for reporting all students were not designed appropriately in order to allow for timely reporting to the NSLDS. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If an institution does not review, update and verify student enrollment statuses, effective dates of the enrollment status and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Recommendation: We recommend that the University review its procedures for student status changes and NSLDS notifications to ensure there are follow-up and review procedures being performed for all students with status changes at the University. Management Response: Management concurs with the finding and the University will periodically perform independent reviews of the information provided to the NSLDS to ensure the status change information has been updated in the NSLDS during the required time period.
Finding 2022-002 Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency: U.S. Department of Education Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.22) require the University to return the unearned portion of grants or loans to the Title IV program within 45 days after a student withdraws. Condition/Context: 1 refund in a sample of 4 was returned at the incorrect amount and resulted in the University returning excess funds. The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The calculation of the unearned portion of the grant or loan to be returned was completed correctly but the incorrect amount was returned. Effect: The University processed incorrect refunds. Recommendation: The University should modify its procedures for processing the returns to ensure the correct amount is returned. Management Response: Calculations to determine the unearned portion of the grant or loan to be returned will be completed with applicable dates and required aid adjustments. Evaluation of procedures will be on-going as a best practice.
Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.
Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.
Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.
Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.
Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.
Finding 2022-001: Significant Deficiency Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency: U.S. Department of Education Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Repeat of Prior Year Finding 2021-002 Criteria: Title IV regulations (34 CFR Section 685.309(b)) require that upon receipt of an enrollment report from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the institution and who received a loan under Title IV of the Act has changed his or her permanent address. Condition/Context: The University did not notify the National Student Loan Data System (NSLDS) in a timely manner for 3 students with status changes in our sample of 25 students. The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The University's procedures for reporting all students were not designed appropriately in order to allow for timely reporting to the NSLDS. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If an institution does not review, update and verify student enrollment statuses, effective dates of the enrollment status and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Recommendation: We recommend that the University review its procedures for student status changes and NSLDS notifications to ensure there are follow-up and review procedures being performed for all students with status changes at the University. Management Response: Management concurs with the finding and the University will periodically perform independent reviews of the information provided to the NSLDS to ensure the status change information has been updated in the NSLDS during the required time period.
Finding 2022-002 Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency: U.S. Department of Education Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.22) require the University to return the unearned portion of grants or loans to the Title IV program within 45 days after a student withdraws. Condition/Context: 1 refund in a sample of 4 was returned at the incorrect amount and resulted in the University returning excess funds. The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The calculation of the unearned portion of the grant or loan to be returned was completed correctly but the incorrect amount was returned. Effect: The University processed incorrect refunds. Recommendation: The University should modify its procedures for processing the returns to ensure the correct amount is returned. Management Response: Calculations to determine the unearned portion of the grant or loan to be returned will be completed with applicable dates and required aid adjustments. Evaluation of procedures will be on-going as a best practice.
Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.
Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.
Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.
Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.
Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.