Finding 1168227 (2024-007)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-01-07
Audit: 380015
Organization: Heritage University (WA)

AI Summary

  • Core Issue: There are significant deficiencies in internal controls for determining student eligibility for Title IV financial aid programs.
  • Impacted Requirements: Institutions must verify student eligibility for need-based and non-need-based programs, ensuring aid does not exceed financial need.
  • Recommended Follow-Up: Implement stronger controls and documentation processes to ensure accurate eligibility determinations for Title IV aid.

Finding Text

Eligibility – Significant Deficiency in Internal Controls over Compliance Department of Education Student Financial Assistance Cluster Federal Assistance Listing Number: 84.063, 84.268 Federal Program Name: Federal Pell Grant Program, Federal Direct Student Loans Federal Award Number: P063P232403, P379T242403, P268K242403, P007A234364 Award Year: 2023-24 Criteria – Institutions are required to determine student eligibility for some Title IV programs who have financial need known as “need-based” programs. The total aid that a student receives from need-based programs may not exceed the student’s financial need. For other Title IV programs, eligibility is based on the student’s expected family contribution. Institutions are required to have controls in place to support the eligibility of each student for need and non-need based programs. Condition/context – We selected a sample of 42 students out of a population of 694 students who received Title IV aid during the year. Of the 42 samples selected we found errors with 5 student’s eligibility for need and non-need based programs. Our sample was not, and was not intended to be, statistically valid. Questioned costs – None Cause/effect – This occurred because of turnover in the student financial assistance office. Repeat finding – No Recommendation – We recommend the University implement the proper controls to ensure the determination of student eligibility for Title IV aid is appropriate and supported. Views of responsible officials and planned corrective actions – As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Student Affairs on January 7, 2025. This group will continue to work on implementing the proper controls to ensure that the determination of student eligibility for Title IV aid is appropriate and has supporting documentation.

Corrective Action Plan

Planned corrective actions: As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Student Affairs on January 7, 2025. This group will continue to work on implementing the proper controls to ensure that the determination of student eligibility for Title IV aid is appropriate and has supporting documentation. Name of Responsible Party: 1. Nancy Benavides,Financial Aid Director 2. Corey Hodge, VP for Student Affairs 3. Joanne Fernandez, Controller 4. Marla Withers, Assistant Controller 5. Sagrario Armenta Jimenez, CFO 6. Dr. Christopher Gilmer, President Anticipated completion date: 6/30/2026

Categories

Student Financial Aid Eligibility Significant Deficiency

Other Findings in this Audit

  • 1168215 2024-003
    Material Weakness Repeat
  • 1168216 2024-005
    Material Weakness Repeat
  • 1168217 2024-007
    Material Weakness Repeat
  • 1168218 2024-005
    Material Weakness Repeat
  • 1168219 2024-005
    Material Weakness Repeat
  • 1168220 2024-002
    Material Weakness Repeat
  • 1168221 2024-002
    Material Weakness Repeat
  • 1168222 2024-003
    Material Weakness Repeat
  • 1168223 2024-004
    Material Weakness Repeat
  • 1168224 2024-004
    Material Weakness Repeat
  • 1168225 2024-005
    Material Weakness Repeat
  • 1168226 2024-006
    Material Weakness Repeat
  • 1168228 2024-008
    Material Weakness Repeat
  • 1168229 2024-008
    Material Weakness Repeat
  • 1168230 2024-009
    Material Weakness Repeat
  • 1168231 2024-009
    Material Weakness Repeat
  • 1168232 2024-009
    Material Weakness Repeat
  • 1168233 2024-009
    Material Weakness Repeat
  • 1168234 2024-009
    Material Weakness Repeat
  • 1168235 2024-009
    Material Weakness Repeat
  • 1168236 2024-009
    Material Weakness Repeat
  • 1168237 2024-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $2.78M
84.268 FEDERAL DIRECT STUDENT LOANS $2.73M
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $1.03M
84.425 EDUCATION STABILIZATION FUND $557,563
84.141 MIGRANT EDUCATION HIGH SCHOOL EQUIVALENCY PROGRAM $524,057
84.031 HIGHER EDUCATION INSTITUTIONAL AID $475,567
84.149 MIGRANT EDUCATION COLLEGE ASSISTANCE MIGRANT PROGRAM $336,066
84.217 TRIO MCNAIR POST-BACCALAUREATE ACHIEVEMENT $296,420
84.042 TRIO STUDENT SUPPORT SERVICES $275,291
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $118,077
84.033 FEDERAL WORK-STUDY PROGRAM $67,988
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $52,110
10.558 CHILD AND ADULT CARE FOOD PROGRAM $39,983
84.215 INNOVATIVE APPROACHES TO LITERACY; PROMISE NEIGHBORHOODS; FULL-SERVICE COMMUNITY SCHOOLS; AND CONGRESSIONALLY DIRECTED SPENDING FOR ELEMENTARY AND SECONDARY EDUCATION COMMUNITY PROJECTS $35,127
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $26,409
93.732 MENTAL AND BEHAVIORAL HEALTH EDUCATION AND TRAINING GRANTS $17,084
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $15,739
43.001 SCIENCE $12,850
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $11,788
45.024 PROMOTION OF THE ARTS GRANTS TO ORGANIZATIONS AND INDIVIDUALS $6,067
47.074 BIOLOGICAL SCIENCES $1,204
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $0