Finding 1090894 (2024-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-12-16
Audit: 332774
Organization: The Methodist University, Inc. (NC)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University did not report Pell Grant payment data on time for 1 out of 25 records.
  • Impacted Requirements: This failure violates the Common Origination and Disbursement (COD) reporting requirements, specifically the 15-day reporting rule.
  • Recommended Follow-Up: Enhance internal controls and procedures for timely reporting to COD, and continue weekly reconciliations between Financial Aid and Accounting.

Finding Text

Federal Program Information: Federal Pell Grant Program (ALN#: 84.063) Criteria or Specific Requirement: L. Reporting – Common Origination and Disbursement System Reporting: Institutions submit Federal Direct Loan Program, Federal Pell Grant Program, and TEACH Grant origination records and disbursement records to the Common Origination and Disbursement (COD) system. Origination records can be sent well in advance of any disbursements, as early as the institution chooses to submit them for any student the institution reasonably believes will be eligible for a payment. An institution follows up with a disbursement record for that student no earlier than (1) seven calendar days prior to the disbursement date under the Advance or Heightened Cash Monitoring 1 payment methods, or (2) the date of the disbursement under the Reimbursement or Heightened Cash Monitoring 2 Payment Method. The disbursement record reports the actual disbursement date and the amount of the disbursement. The U.S. Department of Education (the “ED”) processes origination and/or disbursement records and returns acknowledgments to the institution. The acknowledgments identify the processing status of each record: Rejected, Accepted with Corrections, or Accepted. Institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. Institutions may do this by reporting once every 15 calendar days, bi-weekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner. Condition: The University failed to timely report Pell payment data for 1 of 25 selections. Cause: Insufficient internal control and administrative oversight with respect to COD reporting. Effect or Possible Effect: The University was not in compliance with the COD reporting requirements. Questioned Costs: None. Context: For 1 out of 25 Pell disbursement records selected for testing, the disbursement was not reported to COD within 15 calendar days. Identification of Repeat Finding: There was a similar finding, 2023-001, identified during the prior year. Recommendation: We recommend the University enhance its procedures over disbursement record submissions to ensure timely and accurate reporting to COD. Views of Responsible Officials: The student that was not reported within 15 calendar days was before we had a process in place to prevent this issue from happening. As a result of this finding, Financial Aid and Accounting are reconciling weekly to mitigate this issue.

Categories

Student Financial Aid Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking Subrecipient Monitoring Cash Management Reporting

Other Findings in this Audit

  • 514452 2024-001
    Significant Deficiency Repeat
  • 514453 2024-002
    Significant Deficiency Repeat
  • 514454 2024-003
    -
  • 514455 2024-002
    Significant Deficiency Repeat
  • 514456 2024-003
    -
  • 1090895 2024-002
    Significant Deficiency Repeat
  • 1090896 2024-003
    -
  • 1090897 2024-002
    Significant Deficiency Repeat
  • 1090898 2024-003
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $21.57M
84.063 Federal Pell Grant Program $3.50M
84.007 Federal Supplemental Educational Opportunity Grants $230,914
84.033 Federal Work-Study Program $220,686
93.959 Block Grants for Prevention and Treatment of Substance Abuse $165,228
84.425 Education Stabilization Fund $17,234