Finding 1173570 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-13
Audit: 387286
Organization: Providence Christian College (CA)

AI Summary

  • Core Issue: Disbursement records for Pell and Direct Loans do not match the required dates reported to the Common Origination and Disbursement (COD) system.
  • Impacted Requirements: Compliance with Department of Education regulations regarding accurate reporting of disbursement dates and amounts.
  • Recommended Follow-Up: Review and improve procedures for reporting financial aid disbursements to ensure accuracy and compliance.

Finding Text

Information on the Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grant Program, CFDA 84.007; Federal Work-Study Program, CFDA 84.033; Federal Pell Grant Program, CFDA 84.063; Federal Direct Student Loan Program, CFDA 84.268. Program Year – July 1, 2024 – June 30, 2025 Criteria for Specific Requirement – The Department of Education requires the college to report the disbursement dates and amount on student ledgers that match the disbursement dates and amount reported to the Common Origination and Disbursement (COD) (34 685.301(a)(2)(iii)). Condition – Disbursement records (Student account statements) did not reflect agreement between disbursement dates (COD), as required. Questioned Costs – None – nonmonetary finding Context – During our testing, we noted 10 of the 10 disbursements tested had incorrect Pell and/or Direct Loan disbursement dates reported to the Common Origination and Disbursement (COD) system. Cause – In November of 2023, Providence Christian College faced significant institutional turnover. The Financial Aid Director of 15 years left the institution. The appointed successor to the Financial Aid Director then made a decision to leave the institution on December 15th, 2023. This institutional turmoil created upheaval in the department and required the assistance of a consultant. The current provider, Campus Ivy, was not able to provide consulting services and so Providence contracted with FA Solutions to bring stability to the Financial Aid Department. In the turnover and transition from employees and third party servicers, there was miscommunication and misunderstanding due to institutional ignorance. We reflected the internal dates of receipt in our SIS when the cash payment was received (typically a day or two after the disbursement date). This is because entries had always been manually created by the former Financial Aid Director and we did not understand that this process would be out of compliance with the way FA Solutions was processing financial aid. Effect – The College is not in compliance with the Department of Education regulations. Identification as a Repeat Finding – N/A Recommendation – We recommend the College evaluate its procedures and policies around reporting Pell and Direct Loan disbursements to COD to ensure that student information is reported accurately and timely.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions – The CFO and Student Accounts Manager has begun the process of uploading the file that specifies disbursement date in the ledger so they match one another.

Categories

Student Financial Aid Reporting

Other Findings in this Audit

  • 1173565 2025-002
    Material Weakness Repeat
  • 1173566 2025-002
    Material Weakness Repeat
  • 1173567 2025-002
    Material Weakness Repeat
  • 1173568 2025-002
    Material Weakness Repeat
  • 1173569 2025-003
    Material Weakness Repeat
  • 1173571 2025-004
    Material Weakness Repeat
  • 1173572 2025-004
    Material Weakness Repeat
  • 1173573 2025-004
    Material Weakness Repeat
  • 1173574 2025-004
    Material Weakness Repeat
  • 1173575 2025-005
    Material Weakness Repeat
  • 1173576 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $927,662
84.031 HIGHER EDUCATION INSTITUTIONAL AID $584,997
84.063 FEDERAL PELL GRANT PROGRAM $395,240
84.033 FEDERAL WORK-STUDY PROGRAM $23,998
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $8,206