Finding 1164732 (2024-002)

Material Weakness Repeat Finding
Requirement
AELN
Questioned Costs
-
Year
2024
Accepted
2025-12-13
Audit: 374450
Organization: Tougaloo College (MS)

AI Summary

  • Core Issue: The College failed to verify eligibility for TRIO programs due to missing documentation and high staff turnover.
  • Impacted Requirements: Eligibility criteria for Upward Bound, Educational Talent Search, and Educational Opportunity Centers were not met, risking funding and program continuation.
  • Recommended Follow-Up: Implement stronger documentation controls and staff training to ensure all eligibility requirements are verified before participant acceptance.

Finding Text

Finding 2024-002 - U.S. Department of Education (USDE), TRIO Cluster Programs (material weakness): Information on the federal program – Educational Talent Search (ETS), FAL No. 84.044A, June 30, 2024; Upward Bound Program-Summer I & II (UB), FAL No. 84.047A, June 30, 2024; Upward Bound Program Math and Science (UB), FAL No. 84.047M, June 30, 2024; Educational Opportunity Centers ( EOC), FAL No. 84.066A, June 30, 2024 a) Upward Bound (UB) Eligibility Test Criteria – An individual is eligible to participate in a Regular, Veterans, or a Math and Science Upward Bound project if the individual meets certain criteria regarding U.S. citizenship, age, educational level, academic support needs, and classification as firstgeneration college student, low-income individual or at risk for academic failure. 34 CFR 645.3 Condition – Of the 17 students selected for testing, one (1) student’s citizenship could not be determined, two (2) students did not provide any income information on the application, ten (10) students did not provide tax returns to verify low income as reported. Cause – There was a high degree of staff turnover and lack of experience in the frontline staff directly responsible for internal controls over eligibility verification. Effect – The College could face reduction of funding or program termination. Questioned Costs – $41,253. Perspective – Total population of UB participants was 285. The number tested was 17. Unduplicated students with exceptions was 10. This is considered a systemic problem since eligibility noncompliances were noted across three (3) TRIO programs. Repeat Finding – No. Auditor's Recommendation – We recommend the College ensure that all required documentation is submitted prior to determining the participants' eligibility. Management’s Response – The following corrective actions will be completed by the College and the Executive Director for TRIO Programs on or before June 30, 2026. • The College will recruit and develop highly qualified personnel to ensure that controls over eligibility are implemented to include verification of citizenship, income information, tax refunds, documentation of enrollment status, enrollment agreement, and birthdates. • There will be an additional level of early review by the Executive Director and other senior program staff to verify compliance at multiple stages of program participation by students, including when students are initially recruited and enrolled. • Staff training will be performed specifically on reviewing the proper documentation required for participation in the TRIO programs. View of Responsible Officials – The College agrees with the auditor’s finding and recommendation and believes the corrective measures described above will address the issue and prevent recurrence. b) Educational Talent Search (ETS) Eligibility Test Criteria – An individual is eligible to participate in a Talent Search project if the individual meets certain criteria regarding U.S. citizenship, age, educational level, military status, and classification as first-generation college student, low-income individual or at risk for academic failure. 34 CFR 643.3 Condition – Of the 17 students selected for testing, seven (7) students' citizenship status could not be determined, documentation to support enrollment status was not provided for 17 students, one (1) student did not have any information uploaded, and one (1) student has a birthdate discrepancy. Cause – There was a high degree of staff turnover and lack of experience in the frontline staff directly responsible for internal controls over eligibility verification. Effect – The College could face reduction of funding or program termination. Questioned Costs – Educational Talent Search, FAL No. 84.044A: $7,315. Perspective – Total population of ETS participants was 740. The number tested was 17. Unduplicated students with exceptions was 17. This is considered a systemic problem since eligibility noncompliances were noted across three (3) TRIO programs and noncompliance was noted for the entire sample. Repeat Finding – No. Auditor's Recommendation – We recommend the College ensure that all required documentation is submitted prior to determining the participants' eligibility. c) Educational Opportunity Centers (EOC) Eligibility Test Criteria – An individual is eligible to participate in an Educational Opportunity Centers project if the individual meets certain criteria regarding U.S. citizenship, age, military status, expressed desire for higher education and classification as first-generation college student or low-income individual. 34 CFR 644.3 Condition – Of the 17 participants selected for EOC testing, 17 did not have an enrollment agreement, acceptance letter, nor tax documents uploaded to adequately test the attributes, and one (1) student did not have a signature page for the EOC application. Cause – There was a high degree of staff turnover and lack of experience in the frontline staff directly responsible for internal controls over eligibility verification. Effect – The College could face reduction of funding or program termination. Questioned Costs – Educational Opportunity Centers, FAL No. 84.066A: $3,415. Perspective – Total population of EOC participants was 850. The number tested was 17. Unduplicated students with exceptions was 17. This is considered a systemic problem since eligibility noncompliances were noted across three (3) TRIO programs and noncompliance was noted for the entire sample. Repeat Finding – No. Auditor's Recommendation – We recommend the College ensure that all required documentation is submitted prior to determining the participants' eligibility.

Corrective Action Plan

Finding 5: Cost of Attendance (COA) Budget Documentation Condition: Cost of Attendance Budgets to determine students unmet need were not provided by the College. (34 CFR 685.102(b)) • New SOP requiring documentation (e.g., printout, electronic file) of the student's specific COA be included in their financial aid file. • A full reconstruction of COA budgets is underway using historical tuition and fee schedules, room and board, and survey data. • Documentation has been compiled and saved for all student budget categories and dependency statuses. • Formal COA Development Process: o COA budgets are now reviewed and approved annually by the Financial Aid Director in collaboration with the Finance Office. o Data sources include tuition/fees, room and board, bookstore pricing, transportation estimates, and student expense surveys. • Component Breakdown: o COA budgets are broken down by: § Enrollment status (full-time, part-time) § Housing status (on-campus, off-campus, with parent) • Staff Training: o Financial Aid staff trained annually on COA development and documentation requirements. • Expected date of completion: 06/2026 Finding 6: Federal Programs Expenditure Submission Condition: The Office of Financial Aid submitted unreconciled expenditures within the Fiscal Operations Report and Application to Participate (FISAP) for Federal Pell Grant, Federal SEOG and Federal Work-Study. • New SOP requiring a formal monthly reconciliation of all Federal Pell, SEOG, and FWS program expenditures between the Financial Aid ledger and the Business Office/General Ledger. • Development of a detailed FISAP preparation checklist, requiring final reconciliation sign-off by both the DFA and the Business Manager prior to submission. • Cross-training for new FA and Business Office staff on the specific accounting and reporting requirements for all Title IV program funds reported on the FISAP • Submitted an amended FISAP to correct discrepancies and reflect accurate expenditures. • Conducted a line-by-line reconciliation of all federal fund expenditures for Pell, SEOG, and FWS for the reported year. • Implemented a dual-approval process for FISAP data involving both Financial Aid and Finance teams. • Monthly Reconciliation Protocol: o Financial Aid Office and Business Office will jointly reconcile Title IV disbursements, drawdowns, and expenditures on a monthly basis. o Reconciliations will be documented and archived for audit purposes. • Training and Accountability: o Annual training on FISAP completion and reconciliation best practices for all involved staff. o One staff member from each office designated as the FISAP lead and held accountable for data accuracy. • Expected date of completion: 06/2026 Finding 7: Reconciliation of Title IV program Condition: The College did not reconcile all Title IV programs between the office of Financial Aid and the Business Office, including Federal Pell Grant, Federal SEOG, Federal Work- Study, and Federal Direct Loans. (34 CFR 685.309(b)(5)) • Conducted a full reconciliation for all Title IV programs for the 2024–2025 award year to identify and resolve discrepancies. • Verified drawdowns in G5 against actual disbursements and adjusted ledger entries where necessary. • Establish Monthly Reconciliation Process: o A formal monthly reconciliation schedule is now in place for Pell, SEOG, FWS, and Direct Loans. o Both offices jointly reconcile: § Disbursements from SIS § G5 drawdowns § COD (Common Origination and Disbursement) data § General ledger entries • Clear Division of Responsibilities: o Financial Aid Office: Responsible for accurate awarding, disbursing, and reporting to COD. o Business Office: Responsible for drawdowns, cash management, and posting to the general ledger. o Both sign off monthly on reconciliation reports. • Training and Internal Controls: o Cross-training provided to both teams on Title IV reconciliation best practices and compliance standards. o Developed and implemented internal procedures for handling discrepancies • Expected date of completion: 06/2026

Categories

Eligibility Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1164724 2024-001
    Material Weakness Repeat
  • 1164725 2024-001
    Material Weakness Repeat
  • 1164726 2024-001
    Material Weakness Repeat
  • 1164727 2024-001
    Material Weakness Repeat
  • 1164728 2024-002
    Material Weakness Repeat
  • 1164729 2024-002
    Material Weakness Repeat
  • 1164730 2024-002
    Material Weakness Repeat
  • 1164731 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $3.83M
84.063 FEDERAL PELL GRANT PROGRAM $3.06M
93.926 HEALTHY START INITIATIVE $1.37M
93.837 CARDIOVASCULAR DISEASES RESEARCH $1.22M
84.031 HIGHER EDUCATION_INSTITUTIONAL AID $763,083
84.044 TRIO_TALENT SEARCH $357,267
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $335,458
15.932 PRESERVATION OF HISTORIC STRUCTURES ON THE CAMPUSES OF HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCUS). $327,711
84.033 FEDERAL WORK-STUDY PROGRAM $293,744
43.001 SCIENCE $270,000
84.184 SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES_NATIONAL PROGRAMS $268,019
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $255,727
10.464 SOCIALLY DISADVANTAGED FARMERS AND RANCHERS POLICY RESEARCH CENTER $210,510
97.061 CENTERS FOR HOMELAND SECURITY $201,865
84.047 TRIO_UPWARD BOUND $201,359
81.049 OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM $200,742
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $198,146
84.066 TRIO_EDUCATIONAL OPPORTUNITY CENTERS $191,389
93.110 MATERNAL AND CHILD HEALTH FEDERAL CONSOLIDATED PROGRAMS $167,217
93.307 MINORITY HEALTH AND HEALTH DISPARITIES RESEARCH $122,886
12.905 CYBERSECURITY CORE CURRICULUM $112,600
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $108,810
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION’S HEALTH $97,952
93.838 LUNG DISEASES RESEARCH $97,469
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $96,369
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $96,069
47.067 MATERIALS DEVELOPMENT, RESEARCH, AND INFORMAL SCIENCE EDUCATION $69,907
93.389 NATIONAL CENTER FOR RESEARCH RESOURCES $48,769
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $22,632
84.425 EDUCATION STABILIZATION FUND $17,185
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $15,458
10.331 GUS SCHUMACHER NUTRITION INCENTIVE PROGRAM $8,876
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $7,590