Finding 1080121 (2022-005)

-
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2024-10-24

AI Summary

  • Core Issue: The College failed to pay out credit balances from federal aid before requesting reimbursements from the Department of Education.
  • Impacted Requirements: This noncompliance violates 34 CFR 668.164(h)(2) regarding cash management and heightened cash monitoring.
  • Recommended Follow-Up: Implement a process to identify and pay out federal aid credit balances to students on time.

Finding Text

Credit Balances and Heightened Cash Monitoring 2 (HCM2) Compliance DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2021-2022 Financial Aid Year Condition: The College is required to pay out credit balances created by federal aid before submitting requests for reimbursement to the Department of Education (ED) under HCM2. Criteria: 34 CFR 668.164(h)(2) Questioned Costs: $-0- Context: Out of 40 students tested for holding credit balances, there were 2 students who had a credit balance created by federal direct loans and federal pell grants that were not paid out to the student before submitting reimbursement requests to ED. Cause: There was not an adequate process in place to identify credit balances created by federal aid and paying them before reimbursement requests were submitted. Effect: Noncompliance with the Department of Education's cash management and heightened cash monitoring regulations. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the College design and implement a process to identify credit balances created by federal aid and disburse them to students within the required timeframe. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Student Financial Aid Cash Management Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.76M
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $1.01M
84.063 Federal Pell Grant Program $763,081
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $690,630
84.425 Covid-19 Education Stabilization Fund Heerf - Strengthening Institutions Program $69,211
84.033 Federal Work-Study Program $43,511
84.007 Federal Supplemental Educational Opportunity Grants $30,000