Finding 1164647 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-12-12
Audit: 374251
Organization: Lincoln Land Community College (IL)
Auditor: SIKICH CPA LLC

AI Summary

  • Core Issue: Three students lacked documentation for exit counseling after withdrawal, indicating noncompliance with federal regulations.
  • Impacted Requirements: Failure to conduct exit counseling within 30 days as mandated by 34 CFR section 685.304.
  • Recommended Follow-Up: Implement stronger monitoring of loan recipients to ensure timely exit counseling is provided.

Finding Text

Missing Exit Counseling Documentation Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended June 30, 2025 Criteria: According to 34 CFR section 685.304, an educational institution must ensure that exit counseling is conducted with each Direct Loan student borrower 30 days after the student withdraws from the institution or falls below half-time status. Condition/Context: During our student file testing, we noted three students out of forty did not have documentation in their file that exit counseling was sent thirty days after the student withdrew. We consider the missing exit counseling to be an instance of noncompliance with the Eligibility Compliance Requirement. This is a repeat finding, see Prior Year Audit Findings 2024-002. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: The College did not send out exit counseling on a timely basis after the students withdrew. Cause: The College’s internal controls did not detect the missing exit counseling for the students. Recommendation: We recommend the institution closely monitor all students who are receiving loans to make sure they are sent exit counseling. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

2025-001: Missing Exit Counseling Documentation - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended June 30, 2025 Condition Found During our student file testing, we noted four students out of forty did not have documentation in their file that exit counseling was sent thirty days after the student withdrew. We consider the missing exit counseling to be a instance of noncompliance with the Eligibility Compliance Requirement. This is a repeat finding, see Prior Year Audit Findings 2024-002. Corrective Action Plan LLCC has developed reports to identify students who require exit counseling. The Financial Aid Compliance Coordinator is responsible for overseeing and administering exit counseling process for students who are graduating, withdrawing, or dropping below half-time enrollment. Responsibilities include ensuring compliance with federal regulations, providing accurate loan repayment information, and maintaining proper documentation of completed counseling sessions. Responsible Person for Corrective Action Plan Alison Mills Implementation Date of Corrective Action Plan FY26

Categories

Student Financial Aid Eligibility

Other Findings in this Audit

  • 1164643 2025-001
    Material Weakness Repeat
  • 1164644 2025-001
    Material Weakness Repeat
  • 1164645 2025-001
    Material Weakness Repeat
  • 1164646 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $5.58M
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $2.09M
14.251 ECONOMIC DEVELOPMENT INITIATIVE-COMMUNITY PROJECT FUNDING GRANTS $992,356
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $528,471
84.312 ENERGY EFFICIENCY AND RENEWABLE ENERGY INFORMATION DISSEMINATION, OUTREACH, TRAINING AND TECHNICAL ANALYSIS/ASSISTANCE $413,500
84.042 TRIO_STUDENT SUPPORT SERVICES $294,738
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $245,575
10.855 DISTANCE LEARNING AND TELEMEDICINE LOANS AND GRANTS $244,178
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $154,998
17.261 WORKFORCE DATA QUALITY INITIATIVE (WDQI) $112,955
84.335 CHILD CARE ACCESS MEANS PARENTS IN SCHOOL $102,726
84.033 FEDERAL WORK-STUDY PROGRAM $97,652
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $82,250
20.235 COMMERCIAL MOTOR VEHICLE OPERATOR TRAINING GRANTS $76,500
10.558 CHILD AND ADULT CARE FOOD PROGRAM $43,849
84.063 FEDERAL PELL GRANT PROGRAM $22,379
20.205 HIGHWAY PLANNING AND CONSTRUCTION $19,183
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $13,332