Finding 1175754 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-27
Audit: 389665
Organization: High Point University (NC)

AI Summary

  • Core Issue: The University failed to verify time punches for 2 out of 229 Federal Work-Study students, leading to compliance issues.
  • Impacted Requirements: Verification of earned amounts is crucial for compliance with Federal Work-Study guidelines.
  • Recommended Follow-Up: Strengthen internal controls and ensure consistent adherence to policies regarding the Federal Work-Study Program.

Finding Text

Information on Federal Program ‒ Federal Work-Study Program (Assistance Listing Number 84.033) Criteria – Compliance Requirement N – Special Tests and Provisions – Institutions are required to verify all amounts paid are appropriately earned. Condition – During our testing of the Federal Work-Study program, we noted the following:  For 2 students out of a population of 229 students who received Federal Work-Study, the University was unable to verify time punches, which resulted in overpayments of Federal Work-Study aid; however, the University was able to prove there were offsetting hours that were subsequently claimed as allowable hours, therefore, a return of funds is not needed. Cause – 2 students whose time entered and paid were not able to be verified. Effect – The students and the University were not in compliance with the Federal Work-Study program guidelines. Questioned Costs – $508 Context – As noted in the condition, 2 exceptions out of a population of 229 students were found, which resulted in the students and the University not being in compliance with the program rules. Indication of a Repeat Finding – This is a repeat finding 2024-002 from prior year. Recommendation – We recommend the University ensure its internal controls, policies and procedures are followed on a consistent basis regarding the Federal Work-Study Program. Views of Responsible Officials – See corrective action plan.

Corrective Action Plan

Finding 2025-002 Program: Federal Work Study Assistance Listing No.: 84.033 Federal Agency: Department of Education Award Year: FY 2024 – 2025 Compliance Requirement: N – Special Tests and Provisions – Institutions are required to verify all amounts paid are appropriately earned. University’s Response: The University uses Workday HCM as the official system of record for student employee time reporting. Student workers record time directly in Workday, and supervisors review and approve time entries each pay period prior to payroll processing. The time punches in question were reviewed and approved in Workday in accordance with standard procedures at the time of payment. Because the audit occurred six to eighteen months after the work was performed by the students, supervisors were unable to independently recall specific hours worked beyond the documentation maintained in Workday. However, system records indicate that the hours were reviewed and approved, and the University confirmed that any questioned amounts were offset by subsequent allowable hours worked. As noted by the auditors, questioned costs of $508 were identified; however, no return of Federal Work‑Study funds was required based on allowable offsetting hours. Corrective Action Plan: The University will continue to rely on its existing Federal Work‑Study timekeeping and payroll procedures, which require that student wages be based on hours worked in allowable positions. Management believes the condition identified was isolated in nature and not indicative of a systemic issue within the Federal Work‑Study program. No additional corrective action is planned at this time. Existing procedures remain in effect. Repeat Finding Explanation This finding is reported as a repeat due to similar conditions noted in the prior year related to Federal Work‑Study payroll documentation. However, the current‑year finding reflects a reduced scope, a lower number of students, and a significantly reduced questioned cost amount compared to the prior year. Management believes the issue is not systemic. Name of the responsible person: Marc Sears, Vice President of Human Resources; Brad Calloway, Senior Vice President for Business Affairs; Sandra Fantauzzi, Student Employment Program Manager; Megan Inch, Associate Vice President of Student Financial Planning

Categories

Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1175753 2025-001
    Material Weakness Repeat
  • 1175755 2025-003
    Material Weakness Repeat
  • 1175756 2025-004
    Material Weakness Repeat
  • 1175757 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $80.75M
84.063 FEDERAL PELL GRANT PROGRAM $4.88M
84.423 SUPPORTING EFFECTIVE EDUCATOR DEVELOPMENT PROGRAM $3.18M
64.028 POST-9/11 VETERANS EDUCATIONAL ASSISTANCE $2.47M
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $2.39M
93.778 MEDICAL ASSISTANCE PROGRAM $1.50M
93.279 DRUG USE AND ADDICTION RESEARCH PROGRAMS $455,625
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $312,701
84.033 FEDERAL WORK-STUDY PROGRAM $262,008
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $126,794
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $105,406
93.847 DIABETES, DIGESTIVE, AND KIDNEY DISEASES EXTRAMURAL RESEARCH $85,386
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $64,124
84.425 SUPPORTING EFFECTIVE EDUCATOR DEVELOPMENT PROGRAM $52,348
47.075 SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES $36,905
12.420 MILITARY MEDICAL RESEARCH AND DEVELOPMENT $36,532
94.013 AMERICORPS VOLUNTEERS IN SERVICE TO AMERICA 94.013 $34,949
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $10,357
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $4,218
10.328 FOOD SAFETY OUTREACH PROGRAM $661
84.032 FEDERAL FAMILY EDUCATION LOANS $0