Finding 1191025 (2025-001)

Material Weakness Repeat Finding
Requirement
EN
Questioned Costs
-
Year
2025
Accepted
2026-03-27
Audit: 395253
Organization: Chatham University (PA)

AI Summary

  • Core Issue: The University lacks necessary documentation for internal controls related to timely and accurate disbursement reporting.
  • Impacted Requirements: Compliance with federal requirements for documenting procedures on disbursement reporting and handling excess federal aid.
  • Recommended Follow-Up: Management should enhance internal control documentation processes to ensure compliance and accountability.

Finding Text

Retention of Certain Internal Control Documentation Federal Agencies: United States Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.063, 84.007, 84.033, 84.268 Award Period: 7/1/2024-6/30/2025 Type of Finding: Significant Deficiency in Internal Controls Over Compliance and Other Matter Criteria or Specific Requirement: The Student Financial Assistance cluster requires that there be documented procedures and controls in place to ensure timely and accurate COD Disbursement reporting, as well as documented procedures and controls in place to ensure excess federal aid disbursed to students accounts is either paid to the student within 14 days, or if the institution obtained an authorization to hold credit balance, by the end of the loan period or last payment period in the award year for which the funds were awarded. Condition: The University was unable to produce documentation of the internal controls being performed for certain items selected for testing described above. Questioned Costs: N/A Cause: The University did not have internal control documentation retained for all items selected for testing. Effects: No documentation of internal controls being performed. Repeat Finding: Not a repeat finding. Recommendation: Management should review internal control documentation processes. Views of Responsible Officials: Management agrees and has a plan to correct the finding.

Corrective Action Plan

United States Department of Education Student Financial Assistance Cluster - Assistance Listing No. 84.SFA Condition: The University was unable to provide documentation of certain instances of internal controls procedures occurring. Recommendation: Management should review policies and procedures over retention of internal control documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Processes and procedues were reviewed, updated, documented and implemented upon the hiring of Assistant Vice President of Financial Aid, Jill Bittel on September 15, 2025. Name(s) of the contact person(s) responsible for corrective action: Jill Bittel, Assistant Vice President, Financial Aid Planned completion date for corrective action plan: Complete and provided to audit to prove current processes in place with all new staff are corretly implemented.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1191022 2025-001
    Material Weakness Repeat
  • 1191023 2025-001
    Material Weakness Repeat
  • 1191024 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $23.62M
84.063 FEDERAL PELL GRANT PROGRAM $2.13M
93.732 MENTAL AND BEHAVIORAL HEALTH EDUCATION AND TRAINING GRANTS $988,715
84.033 FEDERAL WORK-STUDY PROGRAM $235,240
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $175,762
59.043 WOMEN'S BUSINESS OWNERSHIP ASSISTANCE $150,000
47.075 SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES $133,613
10.175 FARMERS MARKET AND LOCAL FOOD PROMOTION PROGRAM $127,413
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $122,400
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $91,500
47.074 BIOLOGICAL SCIENCES $16,079
47.050 GEOSCIENCES $11,696
93.778 MEDICAL ASSISTANCE PROGRAM $5,573