Finding 1179657 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-16
Audit: 392056
Organization: Rogue Community College (OR)
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: The College failed to notify 19 out of 60 students about their financial aid awards on time due to delays from a new ERP system.
  • Impacted Requirements: Institutions must notify students within specific timeframes regarding loan disbursements, which was not met in this case.
  • Recommended Follow-Up: The College should assess the new ERP process to ensure timely notifications are sent to students moving forward.

Finding Text

U.S. Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing Numbers: 84.063, 84.007, 84.268, 84.033 Compliance Requirements: Special Tests & Provisions – Disbursements to or on Behalf of Students Type of Finding: Significant Deficiency in Internal Control Criteria: Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan. Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student’s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition: During our testing of 60 students, 19 students did not receive a timely notification of their award from the College. Cause: The College implemented a new ERP system in the current year that caused delays in notifying students of their loan disbursements. Effect: Students were not notified of their student financial aid award within 30 days of crediting the student account. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 students receiving financial aid out of 2,820 total students receiving financial aid. Repeat Finding from the Prior Year(s): No Recommendation: With the change over to the new system, the College should review the new process to ensure timely notifications of aid are delivered to students. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding: 2025-002 Federal Agency Name: U.S. Department of Education Assistance Listing Number(s): 84.063, 84.007, 84.268, 84.033 Program Name: Student Financial Assistance Cluster Finding Summary: Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan. Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student’s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Responsible Individuals: Frankie Everett, Director, Financial Aid Corrective Action Plan: The College implemented a new ERP system in the current year that caused delays in notifying students of their loan disbursements. PowerFAIDS allows documenting the email sent to students in the Communication Log, but a box has to be checked when the email batch is sent. This step was inadvertently missed in several batches so we cannot confirm the email was sent. The Department is working to automate the emails with a college-hired consultant. In the meantime, the Financial Aid Operations Coordinator (Jessica Jones) is double-checking that disbursement emails are going out each week. Anticipated Completion Date: June 2026

Categories

Special Tests & Provisions Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1179650 2025-001
    Material Weakness Repeat
  • 1179651 2025-001
    Material Weakness Repeat
  • 1179652 2025-001
    Material Weakness Repeat
  • 1179653 2025-001
    Material Weakness Repeat
  • 1179654 2025-002
    Material Weakness Repeat
  • 1179655 2025-002
    Material Weakness Repeat
  • 1179656 2025-002
    Material Weakness Repeat
  • 1179658 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $11.26M
84.268 FEDERAL DIRECT STUDENT LOANS $4.13M
93.493 CONGRESSIONAL DIRECTIVES $3.55M
84.044 TRIO TALENT SEARCH $599,930
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $580,265
84.042 TRIO STUDENT SUPPORT SERVICES $511,701
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $503,814
84.066 TRIO EDUCATIONAL OPPORTUNITY CENTERS $291,976
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $212,900
84.033 FEDERAL WORK-STUDY PROGRAM $175,751
84.425 EDUCATION STABILIZATION FUND $82,848
17.261 WORKFORCE DATA QUALITY INITIATIVE (WDQI) $63,375
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $20,000
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $4,886
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $3,833