Finding 1227340 (2025-004)

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

AI Summary

  • Core Issue: Reporting inaccuracies and delays in disbursement data to the COD system and FISAP submission.
  • Impacted Requirements: Noncompliance with 34 CFR §668.164(a) for timely reporting and 34 CFR §668.16(b) for accurate FISAP preparation.
  • Recommended Follow-Up: Review and strengthen financial aid processes to ensure timely and accurate reporting to meet federal standards.

Finding Text

Federal Program: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.063 and 84.268 Federal Agency: Department of Education Federal Award Numbers: P063P242023, P268K252023; Award Year: 2025 Criteria: Per 34 CFR §668.164(a) and related Department of Education guidance, institutions are required to submit accurate disbursement records for Federal student aid programs to the Common Origination and Disbursement (COD) system within 15 calendar days of the disbursement date or becoming aware of the need to adjust a disbursement. Additionally, per 34 CFR §668.16(b) and 34 CFR §673.3, institutions are required to establish and maintain administrative and fiscal procedures to ensure proper and accurate reporting of Title IV program activity, including the accurate preparation and submission of the Fiscal Operations Report and Application to Participate (FISAP). Condition: During our testing of reporting compliance, we identified the following: 1. COD Reporting: For 2 of 37 Federal Direct Loan awards tested, the student's aid year and/or cost of attendance was incorrectly reported to COD. 17 of 17 Pell Grant fall disbursements tested were not reported to COD within the required 15-day period. 2 of 37 Federal Direct Loan disbursements tested were not reported within the required timeframe. The sample was not intended to be, and was not, a statistically valid sample. 2. FISAP Reporting: The FISAP was not initially prepared and submitted accurately, resulting in the need for subsequent correction. In addition, management was unable to provide supporting documentation for various information that was reported in the FISAP. Cause: Turnover within the financial aid department during the period resulted in a lack of continuity in established reporting processes. Effect: Failure to report disbursement data timely to COD and to accurately prepare and submit the FISAP may result in noncompliance with federal requirements and may affect the reliability of information reported to the U.S. Department of Education. Questioned Costs: None reported Context: The exceptions identified above represent deviations from federal reporting requirements across both real-time (COD) and periodic (FISAP) reporting processes within the Student Financial Assistance Cluster. Repeat Finding: Yes Recommendations: The University should evaluate its processes and controls to ensure reporting is completed accurately and timely. Views of Responsible Officials: Management agrees with the finding. See management's corrective action plan.

Corrective Action Plan

Federal Direct Loan FY24-25: Award # P268K252023 Pell Grant FY24-25: Award # P063P242023 Condition Summary: Untimely and inaccurate reporting of Pell Grant and Federal Direct Loan disbursements to COD, and inaccuracies in the initial FISAP submission. Management Response / Corrective Action Plan: Management concurs with this finding. The turnover experienced within the Financial Aid office during the period disrupted the continuity of the University's COD and FISAP reporting processes. As part of the corrective actions described in the overview above, the University has completed a full review of 2025-2026 disbursement and reporting activity to confirm that COD submissions are made within the required 15-day window and that FISAP data is accurate prior to submission. Staff previously responsible for this function are no longer employed at the institution, and the University has engaged an outside consulting firm to provide interim management of Title IV reporting functions, including a documented weekly COD reconciliation and a formal FISAP review-and-sign-off procedure, until permanent, adequately trained staff are in place. 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
  • 1227332 2025-011
    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
  • 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