Finding 1129919 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 352163
Organization: Paine College (GA)

AI Summary

  • Core Issue: The College has a significant deficiency in managing Title IV student financial aid programs, specifically with credit balances exceeding 14 days.
  • Impacted Requirements: This non-compliance violates federal regulations under 34 CFR 668.164(h)(1), which could lead to sanctions from the U.S. Department of Education.
  • Recommended Follow-Up: The College should improve its processes for timely recording of disbursements to enhance accuracy in financial reporting.

Finding Text

Finding 2024-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs Planning (significant deficiency) Information on the federal program – Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grants Program, FAL No. 84.063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024 Criteria – Federal regulations governing Title IV programs. Condition – Non-compliances were noted, as more fully described in the context below. Questioned Costs – N/A 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 Three (3) out of 25 students had a credit balance on their account created by Title IV program funds longer than 14 days. draft 34 CFR 668.164(h)(1). Cause – Oversight by responsible employees. Effect – The College’s participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding – No Auditor’s Recommendation – We strongly recommend the College refine the processes and procedures for the timely recording of disbursements in the general ledger allowing for more accuracy in financial reporting.

Categories

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

Other Findings in this Audit

  • 553477 2024-002
    Significant Deficiency
  • 553478 2024-002
    Significant Deficiency
  • 553479 2024-002
    Significant Deficiency
  • 553480 2024-002
    Significant Deficiency
  • 553481 2024-003
    Significant Deficiency Repeat
  • 553482 2024-003
    Significant Deficiency Repeat
  • 1129920 2024-002
    Significant Deficiency
  • 1129921 2024-002
    Significant Deficiency
  • 1129922 2024-002
    Significant Deficiency
  • 1129923 2024-003
    Significant Deficiency Repeat
  • 1129924 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.05M
84.063 Federal Pell Grant Program $1.51M
84.047 Trio_upward Bound $493,394
84.031 Higher Education Institutional Aid $461,947
84.042 Trio_student Support Services $330,967
84.033 Federal Work-Study Program $282,407
84.007 Federal Supplemental Educational Opportunity Grants $201,442
84.120 Minority Science and Engineering Improvement $128,355
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $94,486
47.076 Education and Human Resources $43,204