Finding 1175840 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-02
Audit: 389805
Organization: Carroll Community College (MD)

AI Summary

  • Core Issue: The College failed to report a Pell disbursement to the COD system within the required 15 days.
  • Impacted Requirements: This violates 34 CFR 690.83(b)(2), which mandates timely reporting of Pell award disbursements.
  • Recommended Follow-Up: Implement a process to ensure all disbursements are reported within 15 days, especially when student enrollment is uncertain.

Finding Text

Criteria or Specific Requirement: Internal Control - Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the federal award that provides reasonable assurance that the non- Federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Compliance - Per 34 CFR 690.83(b)(2), the College is required to report the disbursement dates and amounts awarded for Pell awards to the Common Origination and Disbursement (COD) system within 15 days of disbursing Pell funds to a student. Condition: The College did not report certain Pell disbursements within 15 days to COD. Questioned costs: None Context: For 1 of the 18 Pell disbursements tested across a sample of 32 students receiving Pell awards, the College did not report a disbursement within the 15 day requirement. Cause: The Pell grant was awarded after the fall semester had ended, so the College waited to make sure the student was enrolled for the spring semester before applying it. Effect: The College is not in compliance with required reporting to the Department of Education. Repeat Finding: No. Recommendation: We recommend the College ensure that a process is in place to report within 15 days, including a process to respond and report timely when there are student irregularities. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Condition: The College did not report certain Pell disbursements within 15 days to COD. Recommendation: We recommend the College ensure that a process is in place to report within 15 days, including a process to respond and report timely when there are student irregularities. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. While we agree with the audit finding, we are not clear as to why the date was recorded by COD outside the disbursement window. Action taken in response to finding: We will maintain automated COD reporting through the Student Information System (SIS) and continuously refine processes based on audit results and regulatory changes. Name(s) of the contact person(s) responsible for corrective action: John Gay Jr. Planned completion date for corrective action plan: Fall 2025

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1175839 2025-001
    Material Weakness Repeat
  • 1175841 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $2.50M
84.268 FEDERAL DIRECT STUDENT LOANS $833,421
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $221,997
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $167,573
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $111,781
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $93,926
93.563 CHILD SUPPORT SERVICES $83,270
17.285 REGISTERED APPRENTICESHIP $70,158
84.033 FEDERAL WORK-STUDY PROGRAM $52,866