Finding 1106319 (2023-004)

Significant Deficiency
Requirement
C
Questioned Costs
$1
Year
2023
Accepted
2025-03-25
Audit: 347913
Organization: Manor College (PA)

AI Summary

  • Core Issue: The College drew down $71,186 in federal funds but only disbursed $28,724 to students, leading to questioned costs of $42,462.
  • Impacted Requirements: The College failed to report unspent funds as deferred revenue, violating cash management compliance standards.
  • Recommended Follow-Up: Implement procedures to maintain compliance during employee turnover in financial administration.

Finding Text

Federal Program: Student Financial Aid Cluster – Significant Deficiency Federal Agency: Department of Education ALN Number: 84.007 Condition: The College drew down the full amount of funds authorized ($71,186), however its records report student disbursements of $28,724. Additionally, the unspent drawdowns were not reported as deferred revenue as of June 30, 2023. Questioned Costs: $42,462 Cause: Turnover in employee personnel administering the financial drawdowns. Effect: The College did not operate in accordance with the cash management compliance requirement. Recommendation: The College should develop procedures to ensure that compliance requirements can continue to be met during periods of key employee turnover. Views of Responsible Officials: Management agrees with this finding.

Categories

Questioned Costs Cash Management Significant Deficiency

Other Findings in this Audit

  • 529876 2023-003
    Significant Deficiency
  • 529877 2023-004
    Significant Deficiency
  • 529878 2023-003
    Significant Deficiency
  • 529879 2023-003
    Significant Deficiency
  • 1106318 2023-003
    Significant Deficiency
  • 1106320 2023-003
    Significant Deficiency
  • 1106321 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.31M
84.063 Federal Pell Grant Program $1.38M
84.007 Federal Supplemental Educational Opportunity Grants $71,186
64.U01 Post 9/11 Veterans Educational Assistance $36,808