Finding Text
Finding 2024-003 – U.S. Department of Education (USDE), Title IV Student Financial Aid
Programs (Significant Deficiencies):
Information on the federal program – Federal Pell Grant Program, FAL No.84.063, June 30,
2024; Federal Work Study, FAL No. 84.033, June 30, 2024; Federal Supplemental Education
Opportunity Grant, FAL No.84.007; Federal Direct Student Loan, FAL No. 84.268
Criteria – Federal regulations governing Title IV programs.
Condition – Instances of noncompliance 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) The College did not reconcile the following programs between the Office of Financial Aid and
the Business Office. Per 34 CFR 685.300(b)(5).
a. Federal Pell Grant Program
b. Federal Direct Student Loans
c. Federal SEOG
d. Federal Work-Study (FWS) Program
2) The Office of Financial Aid submitted unreconciled expenditures within the Fiscal Operations
Report and Application to Participate (FISAP) for the programs below:
a. Federal Pell Grant Program
b. Federal Work-Study (FWS) Program
c. Federal SEOG
3) Thirty-two out of 60 students had a credit balance on their account created by Title IV program
funds longer than 14 days. 34 CFR 668.164(h)(1).
Cause – Oversight by responsible employees.
Effect – Noncompliance with program guidelines.
Repeat Finding – Yes.
Auditor's Recommendation – The University should implement corrective actions to ensure that
the above findings are resolved and will not recur in future periods.
Views of Responsible Officials –
Refunds – The refund non-compliance is contributed to the institution’s ERP (Jenzabar)
not being operational for about 7 months. This hindered the staff’s ability to properly
review and process student refunds timely. The institution has a process in place to ensure
compliance of distribution and is also enhancing the student refund module to improve
timeliness of refund distribution.
Federal Reconciliations and FISAP – The non-compliance is contributed to the institution’s
ERP (Jenzabar) not being operational for about 7 months. This hindered the staff’s ability
to properly reconcile federal funds timely and assurance in accuracy in completing the
FISAP. In addition, the software enhancements for the Accounting modules, the institution
has purchase a system enhancement for Financial Aid to be able to centralize FA
processing and generate Federal Reconciliations and FISAP report. The Jenzabar
Financial Aid software will assist the institution with maintaining compliance with all
external federal reporting.