Finding 156 (2023-008)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-10-18
Audit: 218
Organization: Virginia Union University (VA)
Auditor: Brown Edwards

AI Summary

  • Core Issue: Some students did not receive HEERF funds as they requested; funds were incorrectly credited to their accounts instead of being issued by check.
  • Impacted Requirements: Recipients must not condition aid on enrollment or require consent for applying funds to accounts, which was not followed in several cases.
  • Recommended Follow-Up: The University should enhance training and controls to ensure compliance with funding distribution requirements and student instructions.

Finding Text

Criteria: Recipients of HEERF funding must acknowledge that it may not condition the receipt of an emergency financial aid grant on continued or future enrollment with the Recipient. Recipients also acknowledge that it may not require a student to consent to the application of the emergency financial aid grant to the student’s outstanding account balance as a condition of receipt of or eligibility for an emergency financial aid grant funding. The recipient also acknowledges that adding preconditions to receiving a financial aid grant that thwart this requirement may be subjected to oversight and corrective action. In consideration for this award, Recipients agree that they hold these grant funds in trust for students and act in the nature of a fiduciary for students. Condition: We tested 36 students receiving student aid to verify that students had been notified of their award, received the funds directly and funds were applied as student requested on their signed and dated HEERF Notification and Authorization Form. Of the 36 tested 10 had issues. For 3 students, their account was credited for the award, and they had authorized payment by check; For 7 students, there was no form found directing how funds should be disbursed to them from VUU. Cause: Weak processes and controls over the notification of students of their award and distribution of awards based on student’s authorization/instruction. Effect: Potential issues with the Department of Education regarding noncompliance. Questioned costs: $-0- Perspective information: These findings relate to the inappropriate distribution of awards to student accounts when students had instructed that their award not be posted to their student’s account and authorized they be made by check. For the other students the funds were posted to the student accounts and there was no evidence of authorization from the student. Identification of repeat findings: Not a repeat finding. Recommendation: The University should increase its efforts to ensure that major program compliance requirements are understood, and controls are implemented to ensure compliance. Views of responsible officials: See Client’s Corrective Action Plan.

Corrective Action Plan

Criteria: Recipients of HEERF funding must acknowledge that it may not condition the receipt of an emergency financial aid grant on continued or future enrollment with the Recipient. Recipients also acknowledge that it may not require a student to consent to the application of the emergency financial aid grant to the student's oustanding account balance as a condition of receipt of or eligibility for an emergency financial aid grant funding. The recipient also acknowledges that adding preconditions to receiving a financial aid grant that thwart this requirement may be subjected to oversight and corrective action. In consideration for this award, Recipients agree that they hold these grant funds in trust for students and act in the nature of a fiduciary for students. The University concurs with this finding and will adhere to the corrective action plan. Corrective Action: The audit for FY22 was not finalized until June 27, 2023. Now that the FY23 audit is finalized, any such compliance issues with students will be taken care of during actual registration process. In the future, any such forms that will need student authorization will be handled during the registration process. Responsbile Person(s): Robin Jefferson, Director of Student Accounts rljefferson@vuu.edu 804 342-3976. Robert Merino, Executive Director of Financial Aid jrmerino@vuu.edu 281 795-6190. Planned Date of Completion of Corrective Action: December 31, 2023.

Categories

Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 129 2023-001
    Significant Deficiency Repeat
  • 130 2023-001
    Significant Deficiency Repeat
  • 131 2023-001
    Significant Deficiency Repeat
  • 132 2023-001
    Significant Deficiency Repeat
  • 133 2023-002
    Significant Deficiency Repeat
  • 134 2023-002
    Significant Deficiency Repeat
  • 135 2023-002
    Significant Deficiency Repeat
  • 136 2023-002
    Significant Deficiency Repeat
  • 137 2023-003
    Significant Deficiency Repeat
  • 138 2023-003
    Significant Deficiency Repeat
  • 139 2023-003
    Significant Deficiency Repeat
  • 140 2023-003
    Significant Deficiency Repeat
  • 141 2023-004
    Significant Deficiency Repeat
  • 142 2023-004
    Significant Deficiency Repeat
  • 143 2023-004
    Significant Deficiency Repeat
  • 144 2023-004
    Significant Deficiency Repeat
  • 145 2023-005
    Material Weakness Repeat
  • 146 2023-005
    Material Weakness Repeat
  • 147 2023-005
    Material Weakness Repeat
  • 148 2023-005
    Material Weakness Repeat
  • 149 2023-006
    Significant Deficiency
  • 150 2023-006
    Significant Deficiency
  • 151 2023-006
    Significant Deficiency
  • 152 2023-006
    Significant Deficiency
  • 153 2023-007
    Material Weakness Repeat
  • 154 2023-007
    Material Weakness Repeat
  • 155 2023-007
    Material Weakness Repeat
  • 157 2023-008
    Material Weakness
  • 158 2023-008
    Material Weakness
  • 576571 2023-001
    Significant Deficiency Repeat
  • 576572 2023-001
    Significant Deficiency Repeat
  • 576573 2023-001
    Significant Deficiency Repeat
  • 576574 2023-001
    Significant Deficiency Repeat
  • 576575 2023-002
    Significant Deficiency Repeat
  • 576576 2023-002
    Significant Deficiency Repeat
  • 576577 2023-002
    Significant Deficiency Repeat
  • 576578 2023-002
    Significant Deficiency Repeat
  • 576579 2023-003
    Significant Deficiency Repeat
  • 576580 2023-003
    Significant Deficiency Repeat
  • 576581 2023-003
    Significant Deficiency Repeat
  • 576582 2023-003
    Significant Deficiency Repeat
  • 576583 2023-004
    Significant Deficiency Repeat
  • 576584 2023-004
    Significant Deficiency Repeat
  • 576585 2023-004
    Significant Deficiency Repeat
  • 576586 2023-004
    Significant Deficiency Repeat
  • 576587 2023-005
    Material Weakness Repeat
  • 576588 2023-005
    Material Weakness Repeat
  • 576589 2023-005
    Material Weakness Repeat
  • 576590 2023-005
    Material Weakness Repeat
  • 576591 2023-006
    Significant Deficiency
  • 576592 2023-006
    Significant Deficiency
  • 576593 2023-006
    Significant Deficiency
  • 576594 2023-006
    Significant Deficiency
  • 576595 2023-007
    Material Weakness Repeat
  • 576596 2023-007
    Material Weakness Repeat
  • 576597 2023-007
    Material Weakness Repeat
  • 576598 2023-008
    Material Weakness
  • 576599 2023-008
    Material Weakness
  • 576600 2023-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.84M
84.063 Federal Pell Grant Program $3.88M
84.425 Education Stabilization Fund $2.21M
84.047 Trio_upward Bound $622,763
84.033 Federal Work-Study Program $589,503
84.031 Higher Education_institutional Aid $465,333
84.007 Federal Supplemental Educational Opportunity Grants $436,447
84.042 Trio_student Support Services $242,540
84.044 Trio_talent Search $241,259
47.076 Education and Human Resources $164,938
99.U01 National Institute of General Medical Sciences: Institutinal Research and Academic Career Development Awards $14,636
84.217 Trio_mcnair Post-Baccalaureate Achievement $6,054
45.162 Promotion of the Humanities_teaching and Learning Resources and Curriculum Development $5,866