Finding 1227332 (2025-011)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-19
Audit: 409430
Organization: Wittenberg University (OH)
Auditor: RSM US LLP

AI Summary

  • Core Issue: SEOG funds totaling $85,880 were disbursed outside the applicable award year, violating federal regulations.
  • Impacted Requirements: Disbursement of Title IV funds must occur within the designated payment period as per 34 CFR 668.164 and 34 CFR 668.165.
  • Recommended Follow-Up: The University should assess and improve its processes to ensure timely disbursement of federal aid.

Finding Text

Federal Program: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.007 Federal Agency: Department of Education (DOE) Federal Award Numbers: P007A243392; Award Year: 2025 Criteria: Pursuant to 34 CFR 668.164 and 34 CFR 668.165, institutions must disburse Title IV funds by crediting the funds to the student’s account for allowable charges within the applicable payment period. Condition: During testing, it was noted that the Institution applied $85,880 of SEOG funding related to the 2024–2025 award year to student accounts during fiscal year 2026. These funds were not awarded or disbursed during the applicable award year due to the Institution not initially allocating the full amount of available SEOG funding to eligible students. Cause: Turnover within the financial aid department during the period resulted in a lack of continuity in processes related to timely awarding of aid Effect: As a result, SEOG funds were disbursed outside of the applicable award year, resulting in noncompliance with federal program requirements related to the timing of disbursements. Questioned Costs: Questioned costs of $85,880 are associated with this finding, as the allowability of these late disbursements is not in accordance with program requirements. Context: Controls did not operate properly for the University to timely and accurately apply federal aid. Repeat Finding: No Recommendations: We recommend that the University evaluate its processes and controls to ensure federal aid disbursement are completed timely. Views of Responsible Officials: Management agrees with the finding. See management's corrective action plan.

Corrective Action Plan

Condition Summary: $85,880 of SEOG funding related to the 2024-2025 award year was applied to student accounts during fiscal year 2026, because the full amount of available SEOG funding was not initially allocated to eligible students. Management Response / Corrective Action Plan: Management concurs with this finding. As part of the University's full review of 2025-2026 packaging activity, the engaged consulting firm has implemented a quarterly reconciliation of SEOG allocation against amounts awarded and disbursed, to ensure funds are fully awarded to eligible students within the correct award year. The University is also evaluating, in consultation with the Department of Education, the appropriate treatment of the funds identified in this finding. Staff previously responsible for SEOG packaging are no longer employed at the institution. Responsible Party - Raymond Nault, Interim Director of Student Financial Services Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

Categories

Student Financial Aid

Other Findings in this Audit

  • 1227309 2025-004
    Material Weakness Repeat
  • 1227310 2025-005
    Material Weakness Repeat
  • 1227311 2025-006
    Material Weakness Repeat
  • 1227312 2025-007
    Material Weakness Repeat
  • 1227313 2025-008
    Material Weakness Repeat
  • 1227314 2025-010
    Material Weakness Repeat
  • 1227315 2025-012
    Material Weakness Repeat
  • 1227316 2025-013
    Material Weakness Repeat
  • 1227317 2025-005
    Material Weakness Repeat
  • 1227318 2025-006
    Material Weakness Repeat
  • 1227319 2025-010
    Material Weakness Repeat
  • 1227320 2025-012
    Material Weakness Repeat
  • 1227321 2025-013
    Material Weakness Repeat
  • 1227322 2025-005
    Material Weakness Repeat
  • 1227323 2025-006
    Material Weakness Repeat
  • 1227324 2025-009
    Material Weakness Repeat
  • 1227325 2025-010
    Material Weakness Repeat
  • 1227326 2025-012
    Material Weakness Repeat
  • 1227327 2025-013
    Material Weakness Repeat
  • 1227328 2025-005
    Material Weakness Repeat
  • 1227329 2025-006
    Material Weakness Repeat
  • 1227330 2025-007
    Material Weakness Repeat
  • 1227331 2025-010
    Material Weakness Repeat
  • 1227333 2025-012
    Material Weakness Repeat
  • 1227334 2025-013
    Material Weakness Repeat
  • 1227335 2025-005
    Material Weakness Repeat
  • 1227336 2025-006
    Material Weakness Repeat
  • 1227337 2025-010
    Material Weakness Repeat
  • 1227338 2025-012
    Material Weakness Repeat
  • 1227339 2025-013
    Material Weakness Repeat
  • 1227340 2025-004
    Material Weakness Repeat
  • 1227341 2025-005
    Material Weakness Repeat
  • 1227342 2025-006
    Material Weakness Repeat
  • 1227343 2025-007
    Material Weakness Repeat
  • 1227344 2025-008
    Material Weakness Repeat
  • 1227345 2025-010
    Material Weakness Repeat
  • 1227346 2025-012
    Material Weakness Repeat
  • 1227347 2025-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $8.42M
84.063 FEDERAL PELL GRANT PROGRAM $2.73M
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $1.52M
84.047 TRIO UPWARD BOUND $371,444
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $246,539
84.033 FEDERAL WORK-STUDY PROGRAM $197,921
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $125,283
45.162 PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT $30,978
84.021 OVERSEAS PROGRAMS - GROUP PROJECTS ABROAD $12,176
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $11,208
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $9,503
81.049 OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM $3,956
43.001 SCIENCE $3,045