FAC Explorer

Finding 1115090 (2024-007)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-27
Audit: 349380
Organization: Sioux Falls School District 49-5 (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There are significant deficiencies in internal controls over compliance related to enrollment reporting for student loans.
  • Impacted Requirements: Reporting deadlines set by 34 CFR section 685.309 were not met, with 16 instances of late status certification beyond the 60-day requirement.
  • Recommended Follow-Up: Financial aid and registrar’s offices should enhance controls for timely data entry and implement a monitoring system for tracking status changes.

Finding Text

2024-007 Department of Education Student Financial Aid Cluster Federal Financial Assistance Listing 84.268 – Federal Direct Student Loans 2023-2024 Award Year Special Tests and Provision – Enrollment Reporting Significant Deficiency in Internal Controls over Compliance and Non-Compliance Criteria: 34 CFR section 685.309 sets forth the criteria for administrative and fiscal control and fund accounting requirements for schools participating in the Direct Loan Program in regard to enrollment reporting requirements. Condition: The following instances were identified through our testing over enrollment reporting: • 16 instances in which the student’s status change was certified outside the 60-day reporting requirement. Cause: For the students with certification dates outside of the required 60-day timeframe, information files were not provided timely to the third-party provider to submit to NSLDS for reporting. The late reporting was specific to the July 2023 and December 2023 graduation dates. Effect: The errors in reporting resulted in reporting dates outside of the required reporting timeframe which could impact the timing of required loan payments to be made. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 60 students with a change in status out of approximately 693 students with a change in status were selected for testing of enrollment reporting requirements. Repeat Finding from Prior Year(s): Yes. Recommendation: We recommend the financial aid and registrar’s offices review controls over information being entered into the software for dates and other academic information that is required to be reported to ensure that status changes and other academic information are certified within 60 days of the effective date. We also recommend that a monitoring system be put in place to track status changes and reporting of those status changes that can be monitored by financial aid or the registrar’s offices. Views of Responsible Officials: Management agrees with the finding.

Categories

Student Financial Aid Reporting Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 538647 2024-006
    Significant Deficiency
  • 538648 2024-007
    Significant Deficiency Repeat
  • 538649 2024-002
    Material Weakness
  • 538650 2024-003
    Material Weakness
  • 538651 2024-004
    Material Weakness
  • 538652 2024-005
    Significant Deficiency Repeat
  • 1115089 2024-006
    Significant Deficiency
  • 1115091 2024-002
    Material Weakness
  • 1115092 2024-003
    Material Weakness
  • 1115093 2024-004
    Material Weakness
  • 1115094 2024-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.83M
84.010 Title I Grants to Local Educational Agencies $7.26M
10.555 National School Lunch Program $7.21M
84.063 Federal Pell Grant Program $3.77M
93.600 Head Start $3.49M
10.553 School Breakfast Program $1.82M
84.048 Career and Technical Education -- Basic Grants to States $1.37M
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $1.28M
10.582 Fresh Fruit and Vegetable Program $583,611
84.011 Migrant Education State Grant Program $433,383
84.424 Student Support and Academic Enrichment Program $394,796
84.060 Indian Education Grants to Local Educational Agencies $388,186
84.425 Education Stabilization Fund $376,510
84.365 English Language Acquisition State Grants $358,993
84.002 Adult Education - Basic Grants to States $201,646
84.173 Special Education Preschool Grants $153,949
84.196 Education for Homeless Children and Youth $150,027
10.559 Summer Food Service Program for Children $145,995
84.287 Twenty-First Century Community Learning Centers $124,506
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $124,486
84.027 Special Education Grants to States $113,486
84.007 Federal Supplemental Educational Opportunity Grants $100,000
93.576 Refugee and Entrant Assistance Discretionary Grants $91,007
97.067 Homeland Security Grant Program $69,877
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $65,244
84.033 Federal Work-Study Program $49,799
10.558 Child and Adult Care Food Program $18,242
15.130 Indian Education Assistance to Schools $13,987
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $8,883
93.913 Grants to States for Operation of State Offices of Rural Health $6,000
12.404 National Guard Challenge Program $2,893
64.028 Post-9/11 Veterans Educational Assistance $2,656
45.025 Promotion of the Arts Partnership Agreements $1,198
84.181 Special Education-Grants for Infants and Families $224