Finding 1221347 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-30
Audit: 405683
Organization: College of the Muscogee Nation (OK)
Auditor: HOGANTAYLOR LLP

AI Summary

  • Core Issue: Six out of 14 Pell Grant disbursement dates were reported incorrectly, causing a four-day discrepancy.
  • Impacted Requirements: Institutions must report accurate disbursement data to the COD system within 15 days to ensure compliance.
  • Recommended Follow-Up: The Financial Aid Coordinator should work with the bursar to implement procedures that verify the accuracy of disbursement date reporting.

Finding Text

Item 2025-003 – Reporting: Pell Grant Disbursement Data Federal Program – Federal Pell Grant Federal ALN – 84.063 Federal Award Number – P063P188097 Federal Award Year – September 30, 2025 Federal Agency – U.S. Department of Education Pass-through Entity – Not Applicable Significant Deficiency In the management and reporting of Pell Grants, institutions are required to submit Pell Grant origination and disbursement records to the U.S. Department of Education's Common Origination & Disbursement (COD) system. Institutions must report student disbursement data within 15 calendar days after making a disbursement or upon becoming aware of the need to adjust previously reported or expected disbursement data. The disbursement record must accurately report both the actual disbursement date and the amount disbursed. Out of a sample of 14 students who received Federal Pell Grants during the audit period, six students did not have the correct disbursement date submitted to the COD system, resulting in a difference of four days between the dates submitted to the COD system and the actual dates the funds were disbursed. The sample was not a statistically valid sample but was determined using Chapter 11 – Audit Sampling Considerations of Uniform Guidance Compliance Audits of the Audit and Accounting Guide for Government Auditing Standards and Single Audits. Review procedures were not in place to verify that the correct disbursement dates were submitted to the COD system. Finding is a repeat of finding 2024-003 in the immediately prior audit. Inaccurate disbursement date reporting can impact reconciliation efforts, potentially leading to compliance issues, administrative inefficiencies, and delays in financial aid processing. We recommend that the Financial Aid Coordinator coordinate with the bursar and add procedures to ensure the accuracy of disbursement date reporting. Management's response is reported in "Management's Views and Corrective Action Plan" at the end of this report.

Corrective Action Plan

Corrective Action Plan (CAP): The College operates under a just- in-time (JIT) cash management model for Title IV funds, in which the disbursement date reported to COD and the date funds are credited to the student's ledger are intended to occur on the same day. Under this model, the CMN draws down Pell grant funds in conjunction with disbursing those funds to the student, rather than disbursing from institutional funds in advance of drawdown. This approach is designed to ensure the College does not hold excess cash on hand, consistent with cash management requirements under 34 CFR 668.164. The College has reviewed the six disbursements identified in this finding and confirmed that, in each instance, the COD submission was processed on schedule, but the corresponding batch process that credits funds to the student ledger ran four days later than intended, resulting in a misalignment between the reported disbursement date and the actual date the student was credited. The College has reviewed the timing and sequencing of COD submissions and ledger transactions with the Bursar's office and the Financial Aid office to ensure both are scheduled and performed on the same day. The existing weekly reconciliation process between Financial Aid and the Bursar's office will be expanded to include a verification that the disbursement date on the ledger matches the COD disbursement date. The College notes that this finding reflects a single disbursement- timing discrepancy across the sample, a reduction in both scope and recurrence compared to findings identified in prior audit periods, and reflects continued improvement in the College's cash management and COD reporting controls.

Categories

Student Financial Aid Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 1221345 2025-001
    Material Weakness Repeat
  • 1221346 2025-002
    Material Weakness Repeat
  • 1221348 2025-004
    Material Weakness Repeat
  • 1221349 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
15.027 ASSISTANCE TO TRIBALLY CONTROLLED COMMUNITY COLLEGES AND UNIVERSITIES $1.84M
84.425 EDUCATION STABILIZATION FUND $1.24M
84.063 FEDERAL PELL GRANT PROGRAM $499,297
84.031 HIGHER EDUCATION INSTITUTIONAL AID $398,719
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $270,836
10.517 TRIBAL COLLEGES EXTENSION PROGRAMS $250,607
10.516 RURAL HEALTH AND SAFETY EDUCATION COMPETITIVE GRANTS $121,019
10.527 NEW BEGINNING FOR TRIBAL STUDENTS $83,160
10.227 1994 INSTITUTIONS RESEARCH PROGRAM $79,082
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $76,492
10.221 TRIBAL COLLEGES EDUCATION EQUITY GRANTS $51,389
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING (INBRE) $49,771
15.820 NATIONAL AND REGIONAL CLIMATE ADAPTATION SCIENCE CENTERS $28,821
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS (FSEOG) $12,566
45.311 NATIVE AMERICAN AND NATIVE HAWAIIAN LIBRARY SERVICES $9,935
12.598 CENTERS FOR ACADEMIC EXCELLENCE $9,582
10.311 BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM $2,500
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $104