Finding 194831 (2022-001)

Material Weakness
Requirement
CN
Questioned Costs
$1
Year
2022
Accepted
2023-02-14
Audit: 178614
Organization: Miles College (AL)

AI Summary

  • Core Issue: The College failed to meet federal compliance requirements for Title IV programs, leading to questioned costs totaling $82,573.
  • Impacted Requirements: Key regulations include proper documentation for Satisfactory Academic Progress and accurate financial reporting for federal aid programs.
  • Recommended Follow-Up: Implement corrective actions, enhance internal controls, and provide staff training to prevent future compliance issues.

Finding Text

Finding 2022-001 - U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Material Weakness): Information on the federal program - Federal Pell Grant Program, CFDA No. 84. 063, June 30, 2022; Federal Work-Study Program, CFDA No. 84.003, June 30, 2022; Federal Supplemental Educational Opportunity Grants, CFDA No. 84.007, June 30, 2022; Federal Teacher Education Assistance for College and Higher Education Grants (TEACH), CFDA No.84.379, June 30, 2022 Federal Direct Student Loans, CFDA No. 84.268, June 30, 2022; Criteria - Federal regulations governing the Title IV programs. Condition - Numerous compliances were noted, as more fully described in the context below. Questioned Costs -As provided below. Context-We observed the following condition in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs: a. The College did not submit required supporting documentation for five (5) students not meeting Satisfactory Academic progress during fieldwork. The questioned cost is $59,488. b. Two (2) out of 60 students had conflicting award letters and student account statements. Payments from the Business Office did not match the award amounts. The questioned cost is $23,085. c. The College has variances in the following programs which do not reconcile to the general ledger or COD. ? Federal Direct Loans ? Federal Pell ? Federal Work-Study ? Federal SEOG Cause - Oversight by responsible employees of properly monitoring required elements. Effect- The Center's participation in the Title IV programs could be subject to USDE sanctions as applicable. Auditor's Recommendation - The Center should implement corrective actions to ensure that the above findings are resolved and do not recur in future periods. Moreover, internal controls over compliance with federal program regulations should be revisited to ensure adequate supervisory controls, quality assurance reviews of compliance steps, technical training of staff, and adequate procedures are being followed for compliance purposes.

Categories

Questioned Costs Student Financial Aid Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 194829 2022-001
    Material Weakness
  • 194830 2022-001
    Material Weakness
  • 194832 2022-001
    Material Weakness
  • 771271 2022-001
    Material Weakness
  • 771272 2022-001
    Material Weakness
  • 771273 2022-001
    Material Weakness
  • 771274 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $6.74M
84.268 Federal Direct Student Loans $5.15M
84.425 Education Stabilization Fund $3.82M
84.031 Higher Education_institutional Aid $892,754
84.033 Federal Work-Study Program $305,390
84.007 Federal Supplemental Educational Opportunity Grants $300,208
84.042 Trio_student Support Services $267,284
47.076 Education and Human Resources $41,911
15.924 National Park Services $40,938
93.658 Foster Care_title IV-E $23,590
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $6,316