Finding 1203013 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396272
Organization: Lake Michigan College (MI)

AI Summary

  • Core Issue: The college failed to provide a required URL for its Tier One servicer contracts to the Department of Education.
  • Impacted Requirements: This finding relates to compliance with 34 CFR 668.164, which mandates public disclosure of contract information.
  • Recommended Follow-Up: Implement controls to ensure timely submission of contract URLs and cost information to the Cash Management Contracts Database.

Finding Text

Assistance Listing, Federal Agency, and Program Name Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Work Study Program (ALN 84.033), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass through Entity - None Finding Type - Significant deficiency Repeat Finding - Yes 2024-001 Criteria - If an institution enters into a Tier One arrangement with a third party servicer, as defined in CFR 668.164(e)(1), the institution must provide to the secretary an up to date URL for the contract and contract data, as described in paragraph (e)(2)(vii) of this section for publication in a centralized database accessible to the public. Condition - Colleges are required to disclose the arrangement on their website, as well as other disclosure requirements outlined in 34 CFR 668.164. The school did not provide a URL for the contracts or cost information of its Tier One provider to the Department of Education for publication in the Cash Management Contracts Database. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - None Context - The College did not provide a URL for the contracts or cost information of its Tier One provider to the Department of Education for publication in the Cash Management Contracts Database. Cause and Effect - A control was lacking to ensure the URL for the contract of its Tier One Provider was published in the Cash Management Contracts Database. Recommendation - We recommend a control be implemented to ensure new contracts or cost information are published in the Cash Management Contracts Database. Views of Responsible Officials and Planned Corrective Actions - The URL associated with Lake Michigan’s required disclosure has now been provided to the secretary via the associated Department of Education’s instructions.

Corrective Action Plan

Finding Number: 2025-002 Condition: If an institution enters into a Tier One arrangement with a third party servicer, as defined in CFR 668.164(e)(1), the institution must provide to the secretary an up-to-date URL for the contract and contract data, as described in paragraph (e)(2)(vii) of this section for publication in a centralized database accessible to the public. Planned Corrective Action: The URL associated with Lake Michigan’s required disclosure has now been provided to the secretary via the associated Department of Education’s instructions. Contact person responsible for corrective action: Ben Burton, Director of Financial Aid Anticipated Completion Date: 03/19/2026

Categories

Student Financial Aid Cash Management Significant Deficiency

Other Findings in this Audit

  • 1203003 2025-001
    Material Weakness Repeat
  • 1203004 2025-001
    Material Weakness Repeat
  • 1203005 2025-001
    Material Weakness Repeat
  • 1203006 2025-001
    Material Weakness Repeat
  • 1203007 2025-002
    Material Weakness Repeat
  • 1203008 2025-002
    Material Weakness Repeat
  • 1203009 2025-002
    Material Weakness Repeat
  • 1203010 2025-002
    Material Weakness Repeat
  • 1203011 2025-002
    Material Weakness Repeat
  • 1203012 2025-002
    Material Weakness Repeat
  • 1203014 2025-003
    Material Weakness Repeat
  • 1203015 2025-003
    Material Weakness Repeat
  • 1203016 2025-003
    Material Weakness Repeat
  • 1203017 2025-003
    Material Weakness Repeat
  • 1203018 2025-003
    Material Weakness Repeat
  • 1203019 2025-003
    Material Weakness Repeat
  • 1203020 2025-004
    Material Weakness Repeat
  • 1203021 2025-004
    Material Weakness Repeat
  • 1203022 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $5.45M
84.268 FEDERAL DIRECT STUDENT LOANS $1.53M
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $405,730
21.027 COVID-19 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $401,551
84.066 TRIO EDUCATIONAL OPPORTUNITY CENTERS $334,687
84.042 TRIO STUDENT SUPPORT SERVICES $247,451
84.047 TRIO UPWARD BOUND $226,422
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $138,069
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $81,416
84.033 FEDERAL WORK-STUDY PROGRAM $63,617
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $9,246