Finding 1186708 (2025-004)

Material Weakness Repeat Finding
Requirement
CL
Questioned Costs
-
Year
2025
Accepted
2026-03-26
Audit: 394416
Organization: College Unbound (RI)

AI Summary

  • Core Issue: The College failed to report the correct disbursement date for one student, leading to discrepancies between student accounts and COD records.
  • Impacted Requirements: Compliance with 34 CFR 690.83(b) regarding accurate reporting of grant changes and disbursement dates to the Secretary.
  • Recommended Follow-up: Implement stronger internal controls to ensure alignment between disbursement dates in student accounts and COD reports.

Finding Text

Finding number: 2025-004 Federal agency: U.S. Department of Education Programs: Student Financial Assistance Cluster Assistance listing #: 84.063 Award year: 2025 Compliance requirement: Cash Management and Reporting Criteria According to 34 CFR 690.83(b): (1) An institution shall report to the Secretary any change in the amount of a grant for which a student qualifies including any related Payment Data changes by submitting to the Secretary the student's Payment Data that discloses the basis and result of the change in award for each student. The institution shall submit the student's Payment Data reporting any change to the Secretary by the reporting deadlines published by the Secretary in the Federal Register. (2) An institution shall submit, in accordance with deadline dates established by the Secretary, through publication in the Federal Register, other reports and information the Secretary requires and shall comply with the procedures the Secretary finds necessary to ensure that the reports are correct. Condition Federal regulations require the College to report the Federal Government’s COD Federal Pell Grant and Direct Loan disbursements made to students. During our testing, we noted 1 student, out of a sample of 40, in which the disbursed date in the student account did not align with the disbursed date in the COD. Our sample was not, and was not intended to be, statistically valid. Cause The College did not have adequate internal controls in place to validate that the disbursement date per the student's account statement matched the disbursement date reported to COD. Effect The College did not report the correct disbursement date to the COD. Questioned Costs Not applicable. Identification as a Repeat Finding, if applicable Not applicable. Recommendation The College should implement internal control procedures to ensure that COD disbursement information matches the College's records. View of Responsible Officials The College agrees with the finding.

Corrective Action Plan

Finding number: 2025-004 Federal agency: U.S. Department of Education Programs: Student Financial Assistance Cluster Assistance listing #: 84.063 and 84.268 Award year: 2025 Corrective Action Plan: College Unbound is expanding capacity, hiring in both the Financial Aid and Accounting departments. We are also hiring a new CFO in the Summer of 2026. With this increased capacity, we will have backups for each process and institute a series of double checks in order to ensure accuracy. Timeline for Implementation of Corrective Action Plan: August 15, 2026 Contact Person: Mark Hartonchik, Interim CFO

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1186709 2025-003
    Material Weakness Repeat
  • 1186710 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $3.28M
84.063 FEDERAL PELL GRANT PROGRAM $2.47M
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $549,987
84.428 AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE—TEACHER PREPARATION AND DEVELOPMENT $315,970
84.425 EDUCATION STABILIZATION FUND $276,960
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $38,620
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $26,262
84.033 FEDERAL WORK-STUDY PROGRAM $24,762