Finding 1179365 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-13
Audit: 391727
Organization: Pillar College and Subsidiaries (NJ)
Auditor: CAPINCROUSE LLC

AI Summary

  • Issue: The College failed to return unearned Title IV funds on time, affecting compliance with federal regulations.
  • Requirements Impacted: Timely returns of Title IV aid as mandated by 34 CFR 668.22, with questioned costs totaling $565.
  • Recommended Follow-Up: Collaborate with the third-party administrator and student accounts office to ensure timely processing of funds in the R2T4 process.

Finding Text

Late Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Pell Grants, Federal Direct Student Loans 84.268 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The College did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $565 Context: Out of 10 students, 2 students who withdrew during the audit period tested had funds returned late. One student had funds returned timely as part of the R2T4 on the student ledger, however was not updated in the Common Origination and Disbursement (COD) and the Grant Management (G5) websites until the audit, resulting in $565 returned late. The other student had $4,503 in unsubsidized loans returned 15 days past the required timeframe. Cause: This was an oversight by the College. Effect: Returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: 2024-001 Recommendation: We recommend that the financial aid office work closely with their third-party administrator and student accounts office to ensure that funds required to be returned as part of the R2T4 process are being processed timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Late Return of Title IV Funds Calculations Planned Corrective Action: We have implemented a document processing system in collaboration with our third-party administrator and the Student Accounts Office to ensure that funds required to be returned as part of the R2T4 process are processed on time. Person Responsible for Corrective Action Plan: Giselle Atenco, Director of Financial Aid Anticipated Date of Completion: Already Implemented

Categories

Student Financial Aid

Other Findings in this Audit

  • 1179362 2025-001
    Material Weakness Repeat
  • 1179363 2025-002
    Material Weakness Repeat
  • 1179364 2025-003
    Material Weakness Repeat
  • 1179366 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $3.66M
84.268 FEDERAL DIRECT STUDENT LOANS $2.27M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $53,000
84.033 FEDERAL WORK-STUDY PROGRAM $29,681