Finding 1201478 (2025-007)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396041
Organization: William Peace Universirty (NC)

AI Summary

  • Core Issue: The University failed to report student loan disbursements accurately and on time to the COD system, violating federal requirements.
  • Impacted Requirements: Disbursement dates and amounts must be reported within 15 days, as mandated by the Department of Education.
  • Recommended Follow-Up: The University should review and improve its reporting procedures to ensure compliance and prevent future issues.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063, 84.268 Federal Award Identification Number: P063P241946, P268K251946 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: The Department of Education requires the University to accurately report disbursement dates and disbursement amounts to the Common Origination and Disbursement (COD) system within 15 days of making Pell Grant and Direct Loan disbursements to students, in accordance with federal regulations (34 CFR 690.83(b)(2) and 34 CFR 685.309). Condition: Certain student loan disbursements were not reported to COD in compliance with federal requirements. Questioned Costs: N/A Context: During our testing of forty disbursements, we noted: • Three out of forty disbursement date errors. • Two out of forty disbursements reported outside of fifteen days. • One out of forty disbursement amount errors. Cause: The University’s controls around reporting to COD were not functioning as designed to ensure timely and accurate reporting. Effect: The University is not in compliance with the Department of Education guidelines. Repeat Finding: Yes, 2024-012 Recommendation: We recommend the University evaluate its procedures and policies around reporting to the COD to ensure that student information is reported timely and accurately. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.

Corrective Action Plan

Common Origination and Disbursement (COD) Reporting Recommendation: We recommend the University evaluate its procedures and policies around reporting to the COD to ensure that student information is reported timely and accurately. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will ensure that its policies and procedures are reviewed and updated to ensure compliance with this recommendation. Name(s) of the contact person(s) responsible for corrective action: Director of Financial Aid Deniesha Newby Planned completion date for corrective action plan: June 30, 2026

Categories

Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 1201470 2025-004
    Material Weakness Repeat
  • 1201471 2025-004
    Material Weakness Repeat
  • 1201472 2025-004
    Material Weakness Repeat
  • 1201473 2025-004
    Material Weakness Repeat
  • 1201474 2025-005
    Material Weakness Repeat
  • 1201475 2025-005
    Material Weakness Repeat
  • 1201476 2025-006
    Material Weakness Repeat
  • 1201477 2025-007
    Material Weakness Repeat
  • 1201479 2025-008
    Material Weakness Repeat
  • 1201480 2025-009
    Material Weakness Repeat
  • 1201481 2025-009
    Material Weakness Repeat
  • 1201482 2025-009
    Material Weakness Repeat
  • 1201483 2025-009
    Material Weakness Repeat
  • 1201484 2025-010
    Material Weakness Repeat
  • 1201485 2025-010
    Material Weakness Repeat
  • 1201486 2025-010
    Material Weakness Repeat
  • 1201487 2025-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $4.21M
84.063 FEDERAL PELL GRANT PROGRAM $1.80M
84.033 FEDERAL WORK-STUDY PROGRAM $44,956
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $37,339
84.425 EDUCATION STABILIZATION FUND $8,266