Finding 1117008 (2024-001)

Material Weakness
Requirement
CELN
Questioned Costs
$1
Year
2024
Accepted
2025-03-29
Audit: 350319
Organization: Tougaloo College (MS)

AI Summary

  • Core Issue: The College failed to comply with federal regulations for Title IV Student Financial Aid Programs, leading to significant questioned costs and potential sanctions.
  • Impacted Requirements: Key areas of noncompliance include Satisfactory Academic Progress, incomplete payroll documentation, untimely return of funds, missing counseling documentation, and unreconciled financial reports.
  • Recommended Follow-Up: Implement corrective actions and strengthen internal controls to ensure compliance with federal regulations and prevent future issues.

Finding Text

Finding 2024-001 - U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (material weakness): Information on the federal program – Federal Pell Grant Program, FAL No. 84.063, June 30, 2024; Federal Supplemental Opportunity Grant Program, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024; Federal Direct Student Loan Program, FAL No. 84.268, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Instances of noncompliance were noted as more fully described in the context below. Questioned Costs – See below Context – We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs: 1) 11 out of 60 students did not meet Satisfactory Academic Progress (SAP) for the academic year. The College did not provide supporting documentation for successful appeals and allowed the students to receive Title IV funding. 34 CFR 668.34. Questioned costs for this finding is $180,794. 2) Nine (9) of the 10 students tested for Federal Work-Study Payroll had missing and/or incomplete timesheets. 34 CFR Part 675. 3) Six (6) of the 10 students tested for withdrawals and the return of Title IV funds did not have their Title IV program funds returned within the 45-day requirement. HEA, Section 484B & 34 CFR 668.22. 4) Entrance and exit counseling documentation was not provided for first time borrowers, withdrawn students or graduated students. 34 CFR 685.304.5) Cost of Attendance Budgets to determine students unmet need were not provided by the College. 34 CFR 685.102(b). 6) The Office of Financial Aid submitted unreconciled expenditures within the Fiscal Operations Report and Application to Participate (FISAP) for Federal Pell Grant, Federal SEOG and Federal Work-Study. 7) The College did not reconcile all Title IV programs between the Office of Financial Aid and the Business Office including Federal Pell Grant, Federal SEOG, Federal Work-Study and Federal Direct Loans. CFR 685.300(b)(5). Cause – Oversight by responsible employees of properly monitoring regulatory requirements. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – None Auditor's Recommendation – The College should implement corrective actions to ensure that the above findings are resolved and do not recur in future periods. Moreover, internal controls over compliance with federal program regulations should be revisited to ensure adequate supervisory controls, quality assurance reviews of processes, and policies and procedures are being updated and adhered to for compliance purposes.

Categories

Questioned Costs Student Financial Aid Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 540563 2024-001
    Material Weakness
  • 540564 2024-001
    Material Weakness
  • 540565 2024-001
    Material Weakness
  • 540566 2024-001
    Material Weakness
  • 540567 2024-002
    Material Weakness
  • 540568 2024-002
    Material Weakness
  • 540569 2024-002
    Material Weakness
  • 540570 2024-002
    Material Weakness
  • 540571 2024-002
    Material Weakness
  • 1117005 2024-001
    Material Weakness
  • 1117006 2024-001
    Material Weakness
  • 1117007 2024-001
    Material Weakness
  • 1117009 2024-002
    Material Weakness
  • 1117010 2024-002
    Material Weakness
  • 1117011 2024-002
    Material Weakness
  • 1117012 2024-002
    Material Weakness
  • 1117013 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.83M
84.063 Federal Pell Grant Program $3.06M
93.926 Healthy Start Initiative $1.37M
93.837 Cardiovascular Diseases Research $1.22M
84.031 Higher Education_institutional Aid $763,083
84.044 Trio_talent Search $357,267
84.116 Fund for the Improvement of Postsecondary Education $335,458
15.932 Preservation of Historic Structures on the Campuses of Historically Black Colleges and Universities (hbcus). $327,711
84.033 Federal Work-Study Program $293,744
43.001 Science $270,000
84.184 Safe and Drug-Free Schools and Communities_national Programs $268,019
84.287 Twenty-First Century Community Learning Centers $255,727
10.464 Socially Disadvantaged Farmers and Ranchers Policy Research Center $210,510
97.061 Centers for Homeland Security $201,865
84.047 Trio_upward Bound $201,359
81.049 Office of Science Financial Assistance Program $200,742
84.007 Federal Supplemental Educational Opportunity Grants $198,146
84.066 Trio_educational Opportunity Centers $191,389
93.110 Maternal and Child Health Federal Consolidated Programs $167,217
93.307 Minority Health and Health Disparities Research $122,886
12.905 Cybersecurity Core Curriculum $112,600
47.076 Stem Education (formerly Education and Human Resources) $108,810
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $97,952
93.838 Lung Diseases Research $97,469
47.049 Mathematical and Physical Sciences $96,369
93.859 Biomedical Research and Research Training $96,069
47.067 Materials Development, Research, and Informal Science Education $69,907
93.389 National Center for Research Resources $48,769
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $22,632
84.425 Education Stabilization Fund $17,185
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $15,458
10.331 Gus Schumacher Nutrition Incentive Program $8,876
43.008 Office of Stem Engagement (ostem) $7,590