Finding 20452 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-09
Audit: 19257

AI Summary

  • Core Issue: The College failed to conduct required exit counseling for students who withdrew or graduated, leading to noncompliance with federal regulations.
  • Impacted Requirements: 34 CFR part 685.304 mandates that exit counseling must be documented for all Direct Loan borrowers before they cease at least half-time study.
  • Recommended Follow-up: Strengthen policies and procedures for the withdrawal and graduation processes to ensure proper documentation of exit counseling is maintained.

Finding Text

Finding 2022-001 ? Special Tests and Provisions: Exit Counseling (Material Weakness and Noncompliance) Information on the federal program: U.S. Department of Education Student Financial Aid Cluster Criteria: 34 CFR part 685.304 requires an institution to ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate borrower shortly before the student borrower ceases at least half-time study at the school. Condition: We selected a sample of 25 students who withdrew from the College. Fourteen of these students received a loan during the year or during their career at the College. Out of the 14 students, none of the students had documentation of exit counseling on file. In addition, we selected a sample of 21 students who graduated during the fiscal year with loans. Of those 21, six students did not have documentation of exit counseling on file. Cause: The College relied on a monthly automated process to email students whose enrollment fell below half-time. The process had been running with the wrong parameters during the year and was not corrected until after the fiscal year end. Effect: The College was not in compliance with exit counseling requirements for students who graduated or withdrew from the College. Recommendation: We recommend the College strengthen its policies and procedures surrounding the withdrawal process and graduation process to ensure compliance with exit counseling requirements. Views of Responsible Officials: See Management?s View and Corrective Action Plan included at the end of the report.

Categories

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

Other Findings in this Audit

  • 20447 2022-001
    Material Weakness
  • 20448 2022-001
    Material Weakness
  • 20449 2022-002
    Significant Deficiency
  • 20450 2022-001
    Material Weakness
  • 20451 2022-002
    Significant Deficiency
  • 20453 2022-002
    Significant Deficiency
  • 20454 2022-002
    Significant Deficiency
  • 596889 2022-001
    Material Weakness
  • 596890 2022-001
    Material Weakness
  • 596891 2022-002
    Significant Deficiency
  • 596892 2022-001
    Material Weakness
  • 596893 2022-002
    Significant Deficiency
  • 596894 2022-001
    Material Weakness
  • 596895 2022-002
    Significant Deficiency
  • 596896 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $13.81M
84.063 Federal Pell Grant Program $10.98M
84.268 Federal Direct Student Loans $6.36M
84.002 Adult Education - Basic Grants to States $585,803
84.033 Federal Work-Study Program $393,856
84.007 Federal Supplemental Educational Opportunity Grants $332,332
84.048 Career and Technical Education -- Basic Grants to States $256,923
23.011 Appalachian Research, Technical Assistance, and Demonstration Projects $195,995
17.259 Wia Youth Activities $166,172
17.258 Wia Adult Program $79,122
14.218 Community Development Block Grants/entitlement Grants $35,000
23.002 Appalachian Area Development $26,762
97.024 Emergency Food and Shelter National Board Program $4,439
17.278 Wia Dislocated Worker Formula Grants $3,980