Finding 1216671 (2023-014)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-06-04
Audit: 403112
Organization: College of the Marshall Islands (MH)

AI Summary

  • Core Issue: The College is not accurately reporting student enrollment status and award amounts in the Origination Records.
  • Impacted Requirements: Compliance with federal reporting standards for the Federal Pell Grant Program is not being met.
  • Recommended Follow-Up: Implement a systematic review process for updating origination records before submission to the COD system.

Finding Text

Finding No.: 2023-014 Federal Agency: U.S. Department of Education AL Program: 84.063 Federal Pell Grant Program Federal Award No.: P063P214572, P063P224572, P063P234572 Area: Reporting Questioned Costs: $0 Criteria: The College is required to submit origination records and disbursement records to the Common Origination and Disbursement (COD) system. Key items on origination records, if applicable, are: Social Security number, award amount, enrollment date, verification status code (when the applicant is selected for verification), transaction number, cost of attendance, and the “Academic Start Date” and “Academic End Date”. Key items on disbursement records are disbursement date and amount. Conditions: 1. For twenty-four (or 60%) of forty items tested, the cost of attendance reflected in the Origination Records is the cost of attendance for full-time students, even if the student’s enrollment status is three-quarters time, half time or less than half time. 2. For eighteen (or 45%) of forty items tested, the award amount reflected in the Origination Records do not agree with the award amount per Payment and Disbursement Schedules. Cause: The College lacks adequate internal controls over compliance with applicable federal regulations related to reporting, specifically the systematic review and updating of financial aid records. Effect: The College is in noncompliance with applicable reporting requirements. No questioned costs are presented as the finding relates to the reporting compliance requirement. Recommendation: College management should establish a systematic process for reviewing and updating the origination records prior to and/or after submission to COD system. Views of Auditee and Planned Corrective Actions: The College agrees with the finding and provides details in its Corrective Action Plan.

Corrective Action Plan

Reporting The College partially agrees with the finding. While the College disagrees with the auditors’ conclusions regarding the calculation of cost of attendance and Pell award amounts for the students tested, the College acknowledges the need to strengthen its review and documentation procedures over origination records and COD submissions to ensure consistency and completeness of reporting records.

Categories

Student Financial Aid Period of Performance Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1216657 2023-005
    Material Weakness Repeat
  • 1216658 2023-006
    Material Weakness Repeat
  • 1216659 2023-007
    Material Weakness Repeat
  • 1216660 2023-008
    Material Weakness Repeat
  • 1216661 2023-009
    Material Weakness Repeat
  • 1216662 2023-009
    Material Weakness Repeat
  • 1216663 2023-010
    Material Weakness Repeat
  • 1216664 2023-010
    Material Weakness Repeat
  • 1216665 2023-010
    Material Weakness Repeat
  • 1216666 2023-011
    Material Weakness Repeat
  • 1216667 2023-012
    Material Weakness Repeat
  • 1216668 2023-012
    Material Weakness Repeat
  • 1216669 2023-012
    Material Weakness Repeat
  • 1216670 2023-013
    Material Weakness Repeat
  • 1216672 2023-015
    Material Weakness Repeat
  • 1216673 2023-016
    Material Weakness Repeat
  • 1216674 2023-017
    Material Weakness Repeat
  • 1216675 2023-018
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $7.12M
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $2.00M
84.425 EDUCATION STABILIZATION FUND $279,969
84.047 TRIO UPWARD BOUND $236,965
11.028 CONNECTING MINORITY COMMUNITIES PILOT PROGRAM $133,427
93.107 AREA HEALTH EDUCATION CENTERS $94,309
10.308 RESIDENT INSTRUCTION, AGRICULTURE, AND FOOD SCIENCE FACILITIES AND EQUIPMENT GRANTS $63,681
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $20,517