Finding 1160838 (2023-006)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
$1
Year
2023
Accepted
2025-10-16
Audit: 370935
Organization: Richland Community College (IL)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: One out of twenty federal work study students was paid incorrectly, indicating a lack of compliance with pay rate requirements.
  • Impacted Requirements: Adequate timesheets and records of hours worked must be maintained, as per federal guidelines.
  • Recommended Follow-Up: The College should correct all pay periods for the underpaid student and enhance review processes for pay rates.

Finding Text

2023-006 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2023 Criteria: Volume 6, Chapter 2 of the 2023-2024 Federal Student Aid Handbook page 11 notes, “You must maintain adequate timesheets or records of hours worked for FWS students. These timesheets must show, separately for each day worked, the hours a student worked, and the total hours worked during the job’s payment cycle (i.e., twice a month, every week, every two weeks, etc., but not less than once a month). These amounts and hours recorded must match the hours for which the student is paid.” Condition: During our testing of twenty individuals receiving federal work study, we noted one individual (5%) was paid an incorrect pay rate for federal work study hours worked. We consider this condition to be an instance of noncompliance relating to the Activities Allowed or Unallowed compliance requirement and is not a repeat finding. Statistical sampling was not used in making sample selections. Questioned Costs: $135 Cause and Effect: The College was not conducting a proper review of the pay rates to students involved in the work study. Without proper review of pay rates for federal work study hours worked recipients could be incorrectly paid for hours worked. Recommendation: We recommend the College correct all pay periods that the student was underpaid. View of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

2023-006 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2023 Condition: During our testing of twenty individuals receiving federal work study, we noted one individual (5%) was paid an incorrect pay rate for federal work study hours worked. We consider this condition to be an instance of noncompliance relating to the Activities Allowed or Unallowed compliance requirement and is not a repeat finding. Statistical sampling was not used in making sample selections. Corrective Action Plan: When rates of pay change, and Employee Authorization document is submitted through a series of individuals (Director of Financial Aid, Supervisor, VP, VP of Financial Services, Human Resources & the President) and signed/approved. This document is then received by the Payroll Coordinator. After payroll is completed, the VP of Financial Services thoroughly reviews all payroll items and verifies rate changes have occurred. Responsible Party for Corrective Action Plan: Payroll Coordinator & VP of Financial Services Implementation Date for Correction Action Plan: Implemented January 2023.

Categories

Questioned Costs Student Financial Aid

Other Findings in this Audit

  • 1160835 2023-006
    Material Weakness Repeat
  • 1160836 2023-006
    Material Weakness Repeat
  • 1160837 2023-006
    Material Weakness Repeat
  • 1160839 2023-007
    Material Weakness Repeat
  • 1160840 2023-007
    Material Weakness Repeat
  • 1160841 2023-007
    Material Weakness Repeat
  • 1160842 2023-007
    Material Weakness Repeat
  • 1160843 2023-008
    Material Weakness Repeat
  • 1160844 2023-008
    Material Weakness Repeat
  • 1160845 2023-008
    Material Weakness Repeat
  • 1160846 2023-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $3.02M
84.268 Federal Direct Student Loans $871,277
84.002 Adult Education - Basic Grants to States $163,411
84.048 Career and Technical Education -- Basic Grants to States $162,697
93.575 Child Care and Development Block Grant $150,216
84.425 Education Stabilization Fund $43,594
84.007 Federal Supplemental Educational Opportunity Grants $40,000
17.268 H-1b Job Training Grants $18,924
84.033 Federal Work-Study Program $17,828