Finding 1161342 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2025
Accepted
2025-10-23
Audit: 371237
Organization: King University (TN)

AI Summary

  • Core Issue: A student was paid for Federal Work Study hours during scheduled class time, violating federal guidelines.
  • Impacted Requirements: Federal regulations prohibit working during class unless documented exceptions apply.
  • Recommended Follow-Up: Implement stronger safeguards and provide additional training for supervisors and students to ensure compliance with federal regulations.

Finding Text

2025‐001 Significant Deficiency: Working During Scheduled Class Time (U.S. Department of Education, Federal Work Study Program, ALN #84.033) Criteria: In accordance with the 2024-2025 Federal Student Aid Handbook, in general, students are not permitted to work in Federal Work Study 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 audit, it was noted that a student appears to have been paid for Federal Work Study hours logged and submitted for time the student was scheduled to be in class. The professor confirmed that the student was present for the scheduled class in which this overlap was noted. Questioned Costs: The known monetary error is an over-payment of $11. Extrapolation of the error across all students and pay periods that may have been affected estimates total possible monetary error of $833. Therefore, the monetary impact of this deficiency does not exceed the reporting threshold of $25,000. Perspective Information: The audit included a detailed testing of 4 files for students participating in the Federal Work Study program during the 2024-2025 award year. For the four students tested, auditors vouched class schedules, timecards, and paystubs for two specific pay periods, one in each semester. Of these students for the specific pay periods tested, overlap between submitted work study hours paid and classes scheduled without reasonable exception was identified in one instance. Therefore, we consider the error rate as 1 out of the 4 total participating students, which is 25.00%. Cause and Effect: The student clocked into their Federal Work Study position prior to class, went to class while remaining clocked in, and then returned to the position following class. The University time-clock system has safeguards to prevent a student from initially clocking in to work during their scheduled class time unless over-ridden by a supervisor in the case of early dismissal or canceled class; however, no such safeguard prevents students from clocking in prior to and remaining clocked in during class, which is what occurred here. The student’s work study supervisor did not identify the overlap prior to submission of timecard hours for payment. Recommendation: The University should ensure that proper safeguards, in both software and personnel, are in place to prevent, identify, and remediate such errors to prevent over-payment of federal aid funds. View of Responsible Officials: In response to the deficiency cited above, the Director of Financial Aid and Financial Aid Office Manager (Work Study Coordinator) met with administration and staff to examine our work study policies and procedures and to determine the necessary corrective action. It was determined that additional training was needed for work study supervisors and students to ensure that federal regulations are followed within the work study program. We have also communicated to all department heads the importance of a campus-wide commitment to excellence in our work study program, so they are more fully aware of the procedures necessary to remain compliant with federal regulations.

Corrective Action Plan

2025‐001 Significant Deficiency: Working During Scheduled Class Time (U.S. Department of Education, Federal Work Study Program, ALN #84.033) Responsible Officials: Christin Mustard, Director of Financial Aid, is responsible for overseeing campus-based funding, and Melissa Tolbert, Financial Aid Office Manager, manages the work study contracts and training with supervisors and students. Kelly Pennington, Payroll and Benefits Supervisor, is responsible for paying work study students. Summary of Finding: During the audit, it was noted that a student appears to have been paid for Federal Work Study hours logged and submitted for time the student was scheduled to be in class without acceptable exemption, which contradicts guidance provided by the 2024-2025 Federal Student Aid Handbook, resulting in an over-payment of $11. Corrective Action Plan: King University has implemented a new mandatory training module for both work study students and supervisors. This training must be completed before a student is cleared to begin working, and this step will be an annual requirement for all new and returning students and supervisors. The training includes key points from the Work Study Handbook and an assessment test that must be passed in order to be cleared for work. Our Work Study Coordinator is completing individual training with all new supervisors as well as refresher training with returning supervisors. Supervisors are informed of their responsibility to verify the accuracy of all timesheets submitted and to ensure that clocked hours do not overlap with scheduled class time. They are required to meet with their work study students in advance to review the policies and expectations outlined in the Work Study Handbook. Both the student and supervisor must sign a document acknowledging that they have read the handbook. Timely communications and reminders will be sent throughout the academic year to supervisors and students as well. As an added safeguard, our IT department has created a report that compares student timesheets to their class schedules to ensure there is no overlap with class time. This report will be run by payroll or financial aid staff prior to each pay cycle to verify compliance. Anticipated Completion Date: King University has returned the overpayment of $11 to the Department via G6 in September 2025.

Categories

Questioned Costs Student Financial Aid Reporting Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $8.20M
84.063 FEDERAL PELL GRANT PROGRAM $3.31M
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $353,545
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $112,750
84.033 FEDERAL WORK-STUDY PROGRAM $106,751