FAC Explorer

Finding 12460 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-08
Audit: 16907
Organization: Illinois College (IL)
Auditor: Sikich LLP

AI Summary

  • Core Issue: One student credit balance was not paid on time, violating federal requirements.
  • Impacted Requirements: Institutions must pay credit balances within fourteen days as per 34 CFR 668.164 and 668.165.
  • Recommended Follow-Up: Enhance controls over credit balance management to prevent future delays.

Finding Text

2022-001 ? Student Financial Assistance Cluster ? (a) Federal Supplemental Educational Opportunity Grant (b) Federal Work Study Program (c) Federal Perkins Loan Program (d) Federal Pell Grant Program (e) Federal Direct Student Loans, ALN (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 ? Year Ended May 31, 2022 Criteria: An institution must pay credit balances to students within fourteen days of the creation of such credit or within fourteen days of the date the institution mut pay the remaining balance on loan funds by the end of the loan period and any remaining other Title IV program funds by the end of the last payment period in the award year for which the funds were awarded (34 CFR 668.164 and 668.165). Condition: We tested 40 credit balances and one credit balance was not paid in a timely manner. We consider this condition to be an instance of noncompliance of the Special Test and Provisions compliance requirement. Statistical sampling was not used in making sampling selections. Questioned Costs: N/A Cause: This condition was caused by an error in the College? system that did not code the student?s candidacy record in Jenzabar which excluded their balance from the credit balance due report. Effect: As a result, the Institution was holding funds that needed to be returned to the student. Recommendation: We recommend the College increase controls over credit balances. Views of Responsible Officials: Management agrees with this Single Audit Finding and the response is included in the Corrective Action Plan. See Chart/table in report

Corrective Action Plan

2022-001 ? Student Financial Assistance Cluster ? (a) Federal Supplemental Educational Opportunity Grant (b) Federal Work Study Program (c) Federal Perkins Loan Program (d) Federal Pell Grant Program (e) Federal Direct Student Loans, ALN (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 - Year Ended May 31, 2022 Condition: We tested 40 credit balances and one credit balance was not paid in a timely manner. Corrective Action Plan: The College identified that the student?s refund was not processed timely due to a coding error in the student?s record in our software. This error then prevented the student from being included on the weekly refund report. The College has created and implemented a weekly reporting process to identify these coding errors. When a student is identified as not being coded, a Student Financial Services Counselor adds the code to the student?s record within the College?s software. This process is performed weekly prior to processing the weekly student and parent refunds. Responsible Person for Corrective Action Plan: Student Financial Services Counselors, Laura Doss, Lisa Sabolo and Victoria Menge Implementation Date for Corrective Action Plan: December 2021

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.02M
84.038 Federal Perkins Loan Program $1.11M
84.031 Higher Education_institutional Aid $569,144
64.027 Post-9/11 Veterans Educational Assistance $283,717
84.042 Trio_student Support Services $254,123
11.307 Economic Adjustment Assistance $237,750
47.076 Education and Human Resources $144,056
84.007 Federal Supplemental Educational Opportunity Grants $109,769
84.033 Federal Work-Study Program $107,722
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $68,480
84.016 Undergraduate International Studies and Foreign Language Programs $68,281
84.425 Education Stabilization Fund $60,409
84.063 Federal Pell Grant Program $2,285