Finding 1205542 (2025-101)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-31

AI Summary

  • Core Issue: Worksheets for returning Title IV funds were not documented as independently reviewed, risking errors in fund returns.
  • Impacted Requirements: Compliance with 2 CFR section 200.303, which mandates proper internal controls over federal awards.
  • Recommended Follow-Up: Establish a formal policy requiring signatures and dates from both preparers and reviewers on all worksheets.

Finding Text

2025-101 Funds to be Returned Worksheets Not Documented as Being Independently Reviewed Assistance Listing Number: 84.063 Program Title: Federal Pell Grant Program Compliance Requirement: Special Tests and Provisions – Return of Title IV Funds Federal Agency: United States Department of Education FAIN and year: P063P203385, 2024-2025 Finding Type: Material Weakness in Internal Control Known Questioned Costs: $0 Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: Return of Funds R2T4 and Pell Grant Early Completer Re-Proration worksheets were calculated and funds properly returned, however the worksheets to determine the return of the funds were not signed off as having been independently reviewed and approved. While calculations are reviewed by someone other than the preparer, no documentation of the review is evident. Cause: Haney Technical School (School) staff review the worksheets but have not set up a formal policy where the independent reviewer signs off and dates the review of the worksheet. Effect: Incorrect amounts could be returned in error. Recommendation: The School should set up a formal policy where worksheets for the return of Title IV funds should include a signature and date of both the preparer and the reviewer. Management Response: See attached Corrective Action Plan.

Corrective Action Plan

Finding Number: 2025-101 The deficiencies resulted from the absence of a comprehensive, system-based control structure capable of: ● Tracking and documenting R2T4 calculations, including secondary review and approval Tom P. Haney Technical College will implement systemic and procedural corrective actions designed to ensure full compliance with Title IV requirements. The institution will procure and implement the Point-of-Sale (POS) module within the FOCUS School Software system to establish automated internal controls. The system will: ● Require documented review and approval workflows for all R2T4 calculations ● Maintain electronic audit trails for all transactions and approvals ● Provide automated notifications and deadline tracking to ensure timely return of funds ● Generate compliance reports for ongoing monitoring The Financial Aid Office will revise and formalize written policies to include: ● R2T4 calculation, review, and approval procedures ● Timelines for return of funds ● System access and authentication requirements All policies will be maintained in accordance with federal recordkeeping requirements under 34 CFR § 668.24. All financial aid and relevant administrative staff will receive training on: ● R2T4 regulatory requirements ● Use of the FOCUS POS system ● Updated institutional policies and procedures Training will be documented and retained for audit purposes. Anticipated Completion Date: 8/31/2026 Responsible Contact Person: Angela Reese

Categories

Student Financial Aid Special Tests & Provisions Material Weakness

Other Findings in this Audit

  • 1205543 2025-102
    Material Weakness Repeat
  • 1205544 2025-103
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $9.30M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $9.15M
84.027 SPECIAL EDUCATION GRANTS TO STATES $7.31M
84.425U COVID-19 EDUCATION STABILIZATION FUND $6.50M
10.553 SCHOOL BREAKFAST PROGRAM $2.40M
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $2.21M
84.063 FEDERAL PELL GRANT PROGRAM $1.55M
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $1.31M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $1.11M
97.039 HAZARD MITIGATION GRANT $764,190
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $664,503
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $546,356
10.558 CHILD AND ADULT CARE FOOD PROGRAM $521,854
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $403,764
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $317,675
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $288,099
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $233,770
84.041 IMPACT AID $221,350
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $183,751
12.U01 AIR FORCE JUNIOR RESERVE OFFICERS TRAINING CORPS $146,713
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $137,500
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $120,416
84.425W COVID-19 EDUCATION STABILIZATION FUND $114,697
12.U03 MARINE CORPS JUNIOR RESERVICE OFFICERS TRAIN $73,653
12.U02 ARMY JUNIOR RESERVE OFFICERS TRAINING CORPS $65,984
12.U04 NAVY JUNIOR RESERVE OFFICERS TRAINING CORPS $52,387
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $35,454