Finding 1165448 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-18

AI Summary

  • Core Issue: There were discrepancies in the Cost of Attendance reported for 24 out of 40 students, affecting the accuracy of financial aid records.
  • Impacted Requirements: Institutions must ensure accurate submission of Direct Loan and Pell Grant records to the Common Origination and Disbursement System (COD) to comply with federal regulations.
  • Recommended Follow-Up: WCCC should enhance internal controls by verifying the accuracy of reported data and implementing monitoring processes to ensure compliance.

Finding Text

Finding 2025-002 Student Financial Aid Cluster Reporting Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster (ALN #’s - 84.063, 84.033, 84.007, 84.268) Criteria: Institutions are required to submit Direct Loan and Pell Grant origination records and disbursement records to the Common Origination and Disbursement System (COD). Origination records can be sent well in advance of any disbursements, as early as the institution chooses to submit them for any student the institution reasonably believes will be eligible for payment. An institution follows up with a disbursement record for that student. The disbursement record reports the actual disbursement date and the amount of the disbursement. Additionally, the enrollment date, verification status code, if applicable, and cost of attendance should be accurately reported to COD. Condition: Our review of the COD reports for 40 students, yielded 24 instances in which the Cost of Attendance did not match the records of WCCC. We noted an additional 5 instances in which the amount reported to COD matched the records within Anthology, however, as noted in finding 2025-001, the amounts within Anthology were noted to be miscalculated. Cause: Controls were not in place to ensure that accurate information was being submitted to COD. Effect: Failure to accurately report cost of attendance, disbursement amounts and disbursement dates to the COD can cause errors in reporting student aid eligibility, violations of federal cash management requirements and creates reconciliation discrepancies between the Department of Ed’s system and the institution’s records. Repeat Finding: This is a not a repeat finding. Questioned costs: Unknown Recommendation: We recommend that WCCC strengthen its internal controls over Title IC reporting to the Common Origination and Disbursement System by establishing a formal process to verify the accuracy of cost of attendance, disbursement amounts and disbursement dates prior to submission to COD and by developing monitoring reports and maintaining documentation of reviews and corrections to demonstrate compliance with the federal regulations. View of Responsible Officials and Planned Corrective Action: Management agrees. See separate Corrective Action Plan.

Corrective Action Plan

Finding 2025-002: Student Financial Aid Cluster – Reporting View of Responsible Officials and Planned Corrective Action: Root Cause Errors occurred because the data file transmitted from Anthology to COD did not consistently include the correct student information. It is not yet clear whether the issue arises from configuration problems, system design limitations, or both. Planned Corrective Action and Responsible Officials • Procedure review and update. The Financial Aid Office will review and revise procedures to ensure accurate, timely, and complete reporting to COD, including pre-submission and post-submission checks. • System-to-COD file analysis with Anthology. In partnership with Anthology's support and managed services teams, the College will: o o o Analyze how COD reporting files are created within Anthology. Identify why certain student data elements are not being transmitted correctly. Implement configuration changes or other system-level fixes to ensure accurate and complete reporting. • Enhanced manual validation until issues are resolved. If the file creation process is determined to be working "as designed" but still does not meet regulatory expectations, Financial Aid staff will perform manual review and correction of COD files prior to submission, and will monitor error and rejection reports from COD for follow-up. As with Finding 2025-001, the Vice President for Student Affairs and the Director of Financial Aid share responsibility for ensuring these corrective actions are implemented and sustained commencing on the date set forth above.

Categories

Student Financial Aid Subrecipient Monitoring Cash Management Eligibility Reporting

Other Findings in this Audit

  • 1165441 2025-001
    Material Weakness Repeat
  • 1165442 2025-002
    Material Weakness Repeat
  • 1165443 2025-001
    Material Weakness Repeat
  • 1165444 2025-002
    Material Weakness Repeat
  • 1165445 2025-001
    Material Weakness Repeat
  • 1165446 2025-002
    Material Weakness Repeat
  • 1165447 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $5.98M
84.268 FEDERAL DIRECT STUDENT LOANS $5.82M
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $362,530
84.042 TRIO STUDENT SUPPORT SERVICES $292,288
11.307 COVID-19, ECONOMIC ADJUSTMENT ASSISTANCE $246,416
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $244,236
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $140,255
94.002 AMERICORPS SENIORS RETIRED AND SENIOR VOLUNTEER PROGRAM (RSVP) 94.002 $95,421
64.027 POST-9/11 VETERANS EDUCATIONAL ASSISTANCE $92,068
23.011 APPALACHIAN RESEARCH, TECHNICAL ASSISTANCE, AND DEMONSTRATION PROJECTS $83,847
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $54,223
93.324 STATE HEALTH INSURANCE ASSISTANCE PROGRAM $46,716
12.631 SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS (STEM) EDUCATIONAL PROGRAM: SCIENCE, MATHEMATICS AND RESEARCH FOR TRANSFORMATION (SMART) $45,023
12.006 NATIONAL DEFENSE EDUCATION PROGRAM $36,300
84.033 FEDERAL WORK-STUDY PROGRAM $32,991
17.235 SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM $18,747