Finding 1215689 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-05-27

AI Summary

  • Core Issue: Disbursement dates for 28 out of 40 sampled loans and grants were inaccurately reported to the COD system.
  • Impacted Requirements: Institutions must report disbursement data within 15 days of the transaction or adjustment.
  • Recommended Follow-Up: Implement procedures to ensure accurate reporting of disbursement dates to the COD system.

Finding Text

Finding 2025-001 Reporting Compliance and Internal Control (Significant Deficiency) U.S. Department of Education – Student Financial Assistance Cluster Federal Direct Student Loans (Federal Assistance Listing #84.268) Federal Award Number: P268K251830 Federal Pell Grant Program (Federal Assistance Listing #84.063) Federal Award Number: P063P241830 Federal Award Year: 2024-2025 Criteria or Specific Requirement Institutions submit Direct Loan, Pell Grant, TEACH Grant and IASG origination records and disbursement records to the Common Origination and Disbursement (“COD”) system. The disbursement record reports the actual disbursement date and the amount of the disbursement. Institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. Condition In a non-statistical sample of 40 disbursements, the disbursement dates reported to the COD system for 28 disbursements differed from the dates of when Federal Direct Student Loans or Federal Pell Grants were credited to the respective students’ accounts as shown on the students’ account statements. Cause The errors were due to administrative oversight. Effect The disbursement dates for 28 disbursements were not accurately reported to the COD system. Questioned Costs None. Identification as a Repeat Finding Yes; see finding 2024-001 in the 2024 Single Audit report. Recommendation The College should implement procedures to ensure that students’ disbursement dates for Federal Direct Student Loans and Federal Pell Grants are reported to the COD system accurately. Views of Responsible Officials and Corrective Actions See Corrective Action Plan.

Corrective Action Plan

Finding No. 2025-001 – Reporting – Compliance and Internal Control (Significant Deficiency) Corrective Action Plan: The discrepancies identified during the current audit were determined to be timing-related issues associated with the transition and implementation of revised disbursement reporting and reconciliation procedures in order to address a similar compliance finding that was identified in the 2024 Single Audit. These discrepancies occurred while updated controls and monitoring processes were being fully integrated into daily operations. During the prior audit conducted on April 6, 2025, auditors identified discrepancies between institutional disbursement dates and the dates reflected in the Common Origination and Disbursement (COD) system for the 2023-2024 award year. Immediately upon identification of the issue in the 2024 Single Audit, the institution implemented corrective measures to ensure that institutional disbursement dates matched Common Origination and Disbursement (COD) reporting. Since May 2025, the following corrective actions have already been fully implemented: 1. Revised and strengthened reconciliation procedures between the Student Information System and COD to ensure accurate disbursement date reporting. 2. Implemented secondary review controls prior to transmitting disbursement records to COD. 3. Established ongoing internal monitoring and periodic reconciliation reviews to identify and resolve discrepancies promptly. 4. Conducted additional staff training regarding Title IV disbursement reporting requirements and COD reconciliation procedures. 5. Assigned designated personnel responsibility for continuous oversight and verification of disbursement date accuracy. 6. Corrected disbursement reporting processes to ensure institutional records align with COD reporting requirements moving forward. Anticipated Completion Date: Since May 2025, the institution has taken all necessary measures to address and correct the identified issues on a prospective basis. All corrective actions outlined above are currently in place and operational. The institution continues to monitor disbursement reporting and reconciliation processes to ensure ongoing compliance with federal Title IV regulations and accurate reporting to COD. Person(s) Responsible for Corrective Action: Beatriz Novoa-Cruz Associate Vice President of Enrollment 718-429-6600 ext. 114

Categories

Student Financial Aid Internal Control / Segregation of Duties Reporting Significant Deficiency

Other Findings in this Audit

  • 1215688 2025-001
    Material Weakness Repeat
  • 1215690 2025-002
    Material Weakness Repeat
  • 1215691 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $9.87M
84.063 FEDERAL PELL GRANT PROGRAM $5.22M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $385,987
84.047 TRIO UPWARD BOUND $322,682
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $149,164
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $134,547
84.033 FEDERAL WORK-STUDY PROGRAM $95,872
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $92,817