Finding 1175756 (2025-004)

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

AI Summary

  • Core Issue: The University improperly awarded financial aid to 3 students due to management oversight and weak internal controls.
  • Impacted Requirements: The University failed to resolve discrepancies in financial aid information, violating 2 CFR Part 668, leading to refunds totaling $192,360.
  • Recommended Follow-Up: Strengthen internal controls and ensure compliance with awarding procedures to prevent future discrepancies.

Finding Text

Information on Federal Program ‒ SFA Cluster Criteria – Consistent with the requirements of 2 CFR Part 668, Subpart B, Part 16, the University is required to identify and resolve discrepancies in the information received from different sources with respect to each student’s financial aid. Condition – The University discovered and disclosed to us:  3 students from a total population of 3,115 students who received financial aid, the University did not address issues with the students FASFA before distributing funds totaling $160,789. The University refunded the unresolved differences to the Department of Education totaling $160,789 subsequent to the award disbursement.  One of the 3 students was also improperly awarded aid in 2023-2024. The student was not eligible for aid, so the University has to return $31,571. The refund has not been processed and is still owed to the Department of Education at the time of report issuance. Cause – Management oversight and insufficient internal controls in the awarding process, resulting in 3 students being improperly awarded aid. Effect – The University was not in compliance with awarding procedures and the University refunded $160,789 to the Department of Education and still owes $31,571. Questioned Costs – $192,360 Context – The University’s system was not updated for ISIR C flags. The system and internal review did not identify the issues before aid was disbursed to student accounts. Indication of a Repeat Finding – This is a new finding in 2025. Recommendation – We recommend the University ensure its internal controls, policies, and procedures are followed on a consistent basis regarding the awarding process. Views of Responsible Officials – See corrective action plan.

Corrective Action Plan

Finding 2025-004 Program: SFA Cluster Assistance Listing No.: Various Federal Agency: Department of Education Award Year: FY 2024 – 2025 Compliance Requirement: Consistent with the requirements of 2 CFR Part 668, Subpart B, Part 16, the University is required to identify and resolve discrepancies in the information received from different sources with respect to each student’s financial aid. University’s Response: The University identified that certain ISIR comment codes (including ISIR “C” flags) were not properly mapped within the student information system. As a result, those comment codes were not displayed or identified for review within the system workflow. At the time financial aid was disbursed, there were no unresolved C‑flags visible in the system requiring resolution prior to disbursement. The University self‑identified this system configuration issue and disclosed it to its auditors. Upon identification, the ISIR comment code mapping was corrected, and the University performed a review of affected records to ensure all required eligibility issues were identified and resolved. As a result of this issue, financial aid was disbursed to three students who were later determined to require additional eligibility review. The University refunded $160,789 to the Department of Education related to these students. Additionally, one student was determined to have been ineligible for aid in a prior award year, resulting in an additional refund obligation of $31,571, which remains payable to the Department of Education at the time of report issuance. Corrective Action Plan: The ISIR comment code mapping issue has been corrected, and all identified affected records have been reviewed and resolved. Management believes the condition resulted from a specific system configuration issue and was isolated in nature. No additional corrective action is planned at this time. The University believes the corrective actions already taken have addressed the root cause of the issue and that existing processes are operating as intended. Name of the responsible person: Megan Inch, Associate Vice President of Student Financial Planning; Brad Calloway, Senior Vice President for Business Affairs Anticipated completion date: Resolved

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1175753 2025-001
    Material Weakness Repeat
  • 1175754 2025-002
    Material Weakness Repeat
  • 1175755 2025-003
    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