FAC Explorer

Finding 1210804 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-29
Audit: 400089
Organization: Augustana University Association (SD)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: The University inaccurately reported financial aid disbursement dates for 1 out of 40 students tested.
  • Impacted Requirements: Compliance with 34 CFR §690.83 and COD reporting requirements is at risk due to lack of accurate reporting processes.
  • Recommended Follow-Up: Establish a reliable process to ensure accurate reporting of all student financial aid disbursement dates to the COD system.

Finding Text

Federal Agency: United States Department of Education Federal Program Name: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Award Period: August 1, 2024 to July 31, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR §690.83 and COD reporting requirements require institutions to accurately report student financial aid disbursement dates to the COD system to ensure compliance with federal regulations. Condition: During testing of Unsubsidized loan disbursements, we noted that 1 of the 40 students tested had incorrect Unsubsidized loan disbursement dates reported to the COD system. Questioned Costs: None Context: Federal regulations require institutions to accurately report student financial aid disbursement dates to the COD system. These dates are critical for tracking compliance and ensuring proper administration of Title IV funds. Incorrect reporting can lead to discrepancies in federal records and potential compliance issues with U.S. Department of Education requirements. Cause: The University did not have a process in place to ensure student financial aid disbursement information was being accurately reported to the COD system. Effect or Potential Effect of Finding: Incorrect reporting of student financial aid disbursement dates may result in noncompliance with federal regulations, potential audit findings, and risk of inaccurate student financial aid records. Repeat Finding: No. Recommendation: We recommend the University establish a process to ensure that all disbursement information is accurately reported to the COD system. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Common Origination & Disbursement (COD) Reporting Recommendation: We recommend the University establish a process to ensure that all disbursement information is accurately reported to the COD system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The finding was ultimately caused by a syncing error of a batch job process that sends disbursement data to COD from our legacy (now retired) system that has since been replaced, as of October 2025. This was viewed as a one-off occurrence, not a broader systematic issue. The new system is better configured to accurately report disbursement information accurately. Further, Management has undergone a review of findings, and confirmed batch information is configured to send COD information accurately as of the finding notification date. Names of the contact persons responsible for corrective action: Josh Perkins, AVP – Finance/Admin; Kevin Klawonn, Director - IT Planned completion date for corrective action plan: April 30, 2026

Categories

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

Other Findings in this Audit

  • 1210798 2025-001
    Material Weakness Repeat
  • 1210799 2025-001
    Material Weakness Repeat
  • 1210800 2025-001
    Material Weakness Repeat
  • 1210801 2025-001
    Material Weakness Repeat
  • 1210802 2025-001
    Material Weakness Repeat
  • 1210803 2025-001
    Material Weakness Repeat
  • 1210805 2025-002
    Material Weakness Repeat
  • 1210806 2025-002
    Material Weakness Repeat
  • 1210807 2025-002
    Material Weakness Repeat
  • 1210808 2025-002
    Material Weakness Repeat
  • 1210809 2025-002
    Material Weakness Repeat
  • 1210810 2025-002
    Material Weakness Repeat
  • 1210811 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $18.91M
84.063 FEDERAL PELL GRANT PROGRAM $2.80M
93.364 NURSING STUDENT LOANS $837,866
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $583,048
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $495,543
84.033 FEDERAL WORK-STUDY PROGRAM $446,719
47.074 BIOLOGICAL SCIENCES $278,334
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $86,757
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $59,930
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $36,303
12.630 Junior Science and Humanities Symposium $18,657
43.001 SCIENCE $11,730
10.558 CHILD AND ADULT CARE FOOD PROGRAM $8,382
15.966 HISTORIC PRESERVATION FUND GRANTS-IN-AID FOR COMPETITIVE GRANTS $6,986
47.083 INTEGRATIVE ACTIVITIES $4,320
47.079 INTERNATIONAL SCIENCE AND ENGINEERING $2,424
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $-63,309