Finding 1081706 (2024-005)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-11-11
Audit: 327876
Organization: Lenoir-Rhyne University (NC)
Auditor: Bdo

AI Summary

  • Core Issue: The University failed to verify required information for 2 out of 15 students selected for federal financial aid verification.
  • Impacted Requirements: This oversight means the University did not comply with federal verification regulations, risking improper disbursement of federal funds.
  • Recommended Follow-Up: Enhance verification procedures, including training for staff and implementing new documentation tools to ensure compliance for all selected students.

Finding Text

Federal Program Information: Student Financial Assistance Cluster: Federal Supplemental Education Opportunity Grants (Assistance Listing #84.007), Federal Work-Study Program (Assistance Listing #84.033), Federal Pell Grant Program (Assistance Listing #84.063), Federal Direct Loan Program (Assistance Listing #84.268) Criteria or Specific Requirement: N. Special Test and Provisions – Verification - An institution shall require an applicant selected for verification to submit acceptable documentation that will verify or update the following information used to determine the applicant's EFC: adjusted gross income, U.S. income tax paid, aggregate number of family members in the household, number of family members in the household who are enrolled as at least half-time students in postsecondary educational institutions if that number is greater than one, and untaxed income subject to U.S. income tax reporting requirements in the base year which is included on the tax return form, excluding information contained on schedules appended to such forms. Untaxed income and benefits include: Social Security benefits if the institution has reason to believe that those benefits were received and were not reported or were not correctly reported; child support if the institution has reason to believe child support was received; U.S. income tax deductions for a payment made to an individual retirement account or Keough account; interest on tax-free bond; foreign income excluded from U.S. income taxation if the institution has reason to believe that foreign income was received; and all other untaxed income subject to U.S. income tax reporting requirements in the base year included on the tax return form, excluding information contained on schedules appended to such forms. (34 CFR section 668.56). Condition: The University did not accurately verify all required information for 2 students. Cause: Administrative oversight. Effect or Possible Effect: Federal awards were not disbursed in accordance with federal regulations, and the University was not in compliance with verification compliance requirements. Questioned Costs: None. Context: For 2 of 15 students selected for verification testing, the University did not properly perform verification procedures. Identification of Repeat Finding: No similar findings identified in the prior year. Recommendation: We recommend that the University enhance its procedures to ensure appropriate verification procedures are performed for all students who are selected for verification unless excluded by federal regulations. Views of Responsible Officials: The University has reviewed its current verification practices. As a result, the Office of Financial Aid will enhance its policies and procedures to ensure accurate verification outcomes. These enhancements will include additional training for financial aid counselors through both internal and external resources, the implementation of the NASFAA Tax Transcript Decoder documentation, and periodic secondary reviews.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Special Tests & Provisions Reporting

Other Findings in this Audit

  • 505251 2024-001
    Material Weakness Repeat
  • 505252 2024-001
    Material Weakness Repeat
  • 505253 2024-001
    Material Weakness Repeat
  • 505254 2024-001
    Material Weakness Repeat
  • 505255 2024-002
    Significant Deficiency Repeat
  • 505256 2024-002
    Significant Deficiency Repeat
  • 505257 2024-002
    Significant Deficiency Repeat
  • 505258 2024-002
    Significant Deficiency Repeat
  • 505259 2024-003
    Significant Deficiency
  • 505260 2024-004
    Significant Deficiency
  • 505261 2024-005
    Significant Deficiency
  • 505262 2024-005
    Significant Deficiency
  • 505263 2024-005
    Significant Deficiency
  • 505264 2024-005
    Significant Deficiency
  • 1081693 2024-001
    Material Weakness Repeat
  • 1081694 2024-001
    Material Weakness Repeat
  • 1081695 2024-001
    Material Weakness Repeat
  • 1081696 2024-001
    Material Weakness Repeat
  • 1081697 2024-002
    Significant Deficiency Repeat
  • 1081698 2024-002
    Significant Deficiency Repeat
  • 1081699 2024-002
    Significant Deficiency Repeat
  • 1081700 2024-002
    Significant Deficiency Repeat
  • 1081701 2024-003
    Significant Deficiency
  • 1081702 2024-004
    Significant Deficiency
  • 1081703 2024-005
    Significant Deficiency
  • 1081704 2024-005
    Significant Deficiency
  • 1081705 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $18.57M
84.063 Federal Pell Grant Program $3.30M
84.007 Federal Supplemental Educational Opportunity Grants $236,994
84.033 Federal Work-Study Program $131,386