Finding 1121130 (2024-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351195
Organization: Tusculum University (TN)

AI Summary

  • Core Issue: Students received Federal Work-Study funds for hours worked during scheduled class times without proper documentation for exceptions.
  • Impacted Requirements: Compliance with the Federal Student Aid Handbook, which prohibits working during class unless specific conditions are met.
  • Recommended Follow-Up: Implement a payroll process step to verify student work hours against class schedules to prevent future overpayments.

Finding Text

2024-003 Significant Deficiency: Federal Work-Study (FWS) (U.S. Department of Education, Federal Work-Study Program, ALN #84.033) Criteria: Per the Federal Student Aid Handbook, in general, students are not permitted to work in FWS positions during scheduled class times. Exceptions are permitted if an individual class is cancelled, if the instructor has excused the student from attending for a particular day, and if the student is receiving credit for employment in an internship, externship, or community work-study experience. Any such exemptions must be documented. Statement of Condition: During the 2024 audit, students were identified to have received Federal Work-Study funds for hours submitted that coincided with scheduled class time without an acceptable exception. Questioned Costs: This finding is monetary in nature. In the instances noted in testing, the total error is $30 in over-award. Extrapolation of this monetary error estimates a total potential error of $1,096. This does not exceed the $25,000 reporting threshold for monetary error within Federal Award Programs. Perspective Information: The audit included a detailed testing of 5 files for undergraduate students who had received Federal Work-Study funds for hours worked, of which this error applies to 2, indicating an error rate of 40.00%. This does exceed the reporting threshold of 10% for Federal Award Programs. Cause and Effect: This issue is the result of oversight during payroll processing. By failing to compare hours submitted as worked hours to student class schedules, students have been over-paid Federal Work-Study funds. Recommendation: The University should incorporate a step into the payroll process for students that would compare submitted hours to the students’ class schedules. View of Responsible Officials: The University acknowledges this finding. In order to ensure that this does not occur again, all supervisors have been reminded of the requirement that students do not work during seat time. Regular reminders to supervisors go out about Federal Work Study Guidelines. In addition, as each timesheet is submitted, financial aid shall check to ensure no violations have occurred. Additional training for supervisors will also occur.

Categories

Student Financial Aid Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 544687 2024-002
    Significant Deficiency
  • 544688 2024-003
    Significant Deficiency
  • 544689 2024-005
    Significant Deficiency Repeat
  • 544690 2024-004
    Significant Deficiency Repeat
  • 544691 2024-001
    Significant Deficiency
  • 1121129 2024-002
    Significant Deficiency
  • 1121131 2024-005
    Significant Deficiency Repeat
  • 1121132 2024-004
    Significant Deficiency Repeat
  • 1121133 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $47.40M
84.268 Federal Direct Student Loans $7.27M
84.063 Federal Pell Grant Program $2.56M
84.047 Trio Upward Bound $1.12M
84.044 Trio Talent Search $705,849
84.042 Trio Student Support Services $600,232
84.007 Federal Supplemental Educational Opportunity Grants $100,690
84.033 Federal Work-Study Program $97,310
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $6,565