Finding 1752 (2022-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-11-13
Audit: 3046
Organization: Arkansas Baptist College (AR)

AI Summary

  • Core Issue: ABC did not accurately report student financial data to the COD system, leading to discrepancies in PELL and Direct loan amounts.
  • Impacted Requirements: Compliance with OMB 2 CFR 200 regulations for timely and accurate financial reporting was not met.
  • Recommended Follow-Up: Implement stronger controls to ensure accurate reporting to the COD system and prevent future discrepancies.

Finding Text

Audit Finding Reference Number 2022 - 003 - Common Origination and Disbursement (COD) System Federal Program and Specific Federal Award Identification CFDA Title and Number 84.063 Federal Pell Grant Program (PELL) 84.268 Federal Direct Student Loan (Direct) Federal Award Year June 30, 2022 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria OMB 2 CFR 200, Subpart F Compliance Supplement, Part 5 - Student Financial Assistance Programs, Section (L) (1) Financial Reporting, indicates that schools submit PELL origination records and disbursement records to the COD system. Key items on the origination records are social security number, award amount, enrollment date, verification status code, transaction number, cost of attendance, and academic calendar. Institutions must report student payment data within 30 calendar days after the school makes a payment; or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data. Conditions and Contexts I noted the following conditions during my testing of the COD system: • The PELL amount was disbursed in the COD system did not agree to the students’ billing statements for twenty-one (21) students out of sixty-three (63). The billing statements reported an excess of $36,383; • The Direct loan amounts disbursed in the COD system did not agree to the students’ billing statements for twenty-nine (29) students out of seventy-one (71) tested. The billing statements reported a decrease in Direct loans of $1,437; and • The enrollment date was incorrectly reported in COD for ten (10) students out of sixty-three (63) tested. Cause ABC failed to adhere to established procedures in reporting to the COD system. Questioned Costs For purposes of this condition, I have no questioned costs. Effect ABC has not complied with Title IV regulations that require proper and accurate recording of the COD system. Repeat Finding Yes. See Schedule of Prior Year Audit Finding 2021-003. Recommendation I recommend that ABC implements controls to ensure that information reported to the COD system is accurate.

Corrective Action Plan

Management concurs with this finding. Management will continue to train in Financial Aid and Business office.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1750 2022-002
    Material Weakness Repeat
  • 1751 2022-002
    Material Weakness Repeat
  • 1753 2022-003
    Material Weakness Repeat
  • 1754 2022-004
    Material Weakness
  • 1755 2022-004
    Material Weakness
  • 1756 2022-005
    Material Weakness
  • 1757 2022-006
    Material Weakness Repeat
  • 1758 2022-007
    Material Weakness Repeat
  • 1759 2022-007
    Material Weakness Repeat
  • 1760 2022-008
    Material Weakness
  • 1761 2022-008
    Material Weakness
  • 1762 2022-008
    Material Weakness
  • 1763 2022-008
    Material Weakness
  • 1764 2022-009
    Material Weakness
  • 1765 2022-010
    Material Weakness
  • 1766 2022-010
    Material Weakness
  • 1767 2022-010
    Material Weakness
  • 1768 2022-010
    Material Weakness
  • 1769 2022-010
    Material Weakness
  • 1770 2022-010
    Material Weakness
  • 1771 2022-010
    Material Weakness
  • 1772 2022-010
    Material Weakness
  • 1773 2022-010
    Material Weakness
  • 578192 2022-002
    Material Weakness Repeat
  • 578193 2022-002
    Material Weakness Repeat
  • 578194 2022-003
    Material Weakness Repeat
  • 578195 2022-003
    Material Weakness Repeat
  • 578196 2022-004
    Material Weakness
  • 578197 2022-004
    Material Weakness
  • 578198 2022-005
    Material Weakness
  • 578199 2022-006
    Material Weakness Repeat
  • 578200 2022-007
    Material Weakness Repeat
  • 578201 2022-007
    Material Weakness Repeat
  • 578202 2022-008
    Material Weakness
  • 578203 2022-008
    Material Weakness
  • 578204 2022-008
    Material Weakness
  • 578205 2022-008
    Material Weakness
  • 578206 2022-009
    Material Weakness
  • 578207 2022-010
    Material Weakness
  • 578208 2022-010
    Material Weakness
  • 578209 2022-010
    Material Weakness
  • 578210 2022-010
    Material Weakness
  • 578211 2022-010
    Material Weakness
  • 578212 2022-010
    Material Weakness
  • 578213 2022-010
    Material Weakness
  • 578214 2022-010
    Material Weakness
  • 578215 2022-010
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $7.53M
84.063 Federal Pell Grant Program $1.70M
84.268 Federal Direct Student Loans $1.26M
84.031 Higher Education_institutional Aid $1.06M
84.382 Strengthening Minority-Serving Institutions $346,645
84.047 Trio_upward Bound $199,299
84.027 Special Education_grants to States $100,804
84.033 Federal Work-Study Program $50,500
84.007 Federal Supplemental Educational Opportunity Grants $40,707