Finding 1170189 (2024-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-01-21
Audit: 383150
Organization: Richland Community College (IL)
Auditor: SIKICH CPA LLC

AI Summary

  • Core Issue: The College inaccurately reported enrollment status changes for 15 out of 40 students, indicating a material weakness in compliance.
  • Impacted Requirements: Non-compliance with federal regulations requiring timely and accurate reporting of student status, as outlined in 34 CFR 690.83 and 685.309.
  • Recommended Follow-Up: The College should fix all known errors in its financial aid system to avoid future reporting issues.

Finding Text

2024-004 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2024. Criteria: 34 CFR 690.83 (b)(2) which states the institution shall submit “in accordance with deadline dates established by the Secretary, through publication in the Federal Register, other reports and information with Secretary requires and shall comply with the procedures the Secretary finds necessary to ensure that the reports are correct.” 34 CFR 685.309(b)(1-2) which states a school shall “upon receipt of a student status confirmation report from the Secretary, complete and return that report to the Secretary within 30 days of receipt; and unless it expects to submit its next student status confirmation report to the Secretary within the next 60 days, notify the Secretary within the next 60 days, notify the Secretary with 30 days if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of student…” Condition: The College did not correctly report enrollment status changes for 15 out of 40 students tested (37.5%). We consider this condition to be a material weakness of the Special Tests and Provisions compliance requirement and is a repeated finding shown in Section IV of this report as prior year finding 2023-007. Statistical sampling was not used in making sampling selections. Questioned Costs: N/A Cause: The students were incorrectly reported due to errors in their financial aid system. Effect: The College did not timely and accurately submit enrollment status information, which has the potential to delay the start of the repayment period for students who have received loans. Recommendation: We recommend the College correct all known errors in their financial aid system to prevent further errors. View of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

2024-004 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2024. Criteria: 34 CFR 690.83 (b)(2) which states the institution shall submit “in accordance with deadline dates established by the Secretary, through publication in the Federal Register, other reports and information with Secretary requires and shall comply with the procedures the Secretary finds necessary to ensure that the reports are correct.” 34 CFR 685.309(b)(1-2) which states a school shall “upon receipt of a student status confirmation report from the Secretary, complete and return that report to the Secretary within 30 days of receipt; and unless it expects to submit its next student status confirmation report to the Secretary within the next 60 days, notify the Secretary within the next 60 days, notify the Secretary with 30 days if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of student…” Condition: The College did not correctly report enrollment status changes for 15 out of 40 students tested (37.5%). We consider this condition to be a material weakness of the Special Tests and Provisions compliance requirement and is a repeated finding shown in Section IV of this report as prior year finding 2023-007. Statistical sampling was not used in making sampling selections. Responsible Person: Director of Financial Aid and Veteran Affairs, Director of Admission and Registration, and Administrative Information Systems (AIS) Corrective Action Plan: Richland Community College adjusted our internal procedures to send enrollment reporting files on a monthly basis instead of a semester basis during the Fall 2022 semester; however, issues still persist. At the time, the Registrar routinely worked with the Administrative Information Systems (AIS) Department and the National Student Clearinghouse to identify the issues related to enrollment reporting. The responsible parties listed above will conduct a review of current enrollment reporting workflows to ensure consistent and timely updates. The responsible parties listed above will explore improvements in automation through the utilization of the National Student Clearinghouse and a campus-wise transition to the Jenzabar One platform to assist with timeliness and accuracy of reporting. Jenzabar One transition is scheduled to be completed by the end of March 2026. Due to transition in staffing, the responsible parties listed above will provide targeted training on NSLDS enrollment reporting requirements, including the expectations of timeliness and accuracy. The responsible parties will develop a secondary review to identify missed or delayed updates and take corrective action promptly. Implementation Date: As soon as possible since enrollment reporting is completed on a monthly basis.

Categories

Student Financial Aid Special Tests & Provisions Material Weakness Reporting

Other Findings in this Audit

  • 1170186 2024-004
    Material Weakness Repeat
  • 1170187 2024-004
    Material Weakness Repeat
  • 1170188 2024-004
    Material Weakness Repeat
  • 1170190 2024-005
    Material Weakness Repeat
  • 1170191 2024-005
    Material Weakness Repeat
  • 1170192 2024-005
    Material Weakness Repeat
  • 1170193 2024-005
    Material Weakness Repeat
  • 1170194 2024-006
    Material Weakness Repeat
  • 1170195 2024-006
    Material Weakness Repeat
  • 1170196 2024-006
    Material Weakness Repeat
  • 1170197 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $3.14M
84.268 FEDERAL DIRECT STUDENT LOANS $681,539
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $105,099
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $91,974
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $53,850
84.033 FEDERAL WORK-STUDY PROGRAM $31,945
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $20,327
10.902 SOIL AND WATER CONSERVATION $12,034
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $11,505