Finding 22095 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-21

AI Summary

  • Issue: The School improperly drew down $310,358 from USDE due to duplicate entries.
  • Requirements Impacted: The School failed to follow proper draw down procedures and did not qualify for the additional funds.
  • Recommended Follow-up: Review and correct the draw down process to prevent future duplicate entries and ensure compliance with funding requirements.

Finding Text

The School drew down $310,358 from U.S. Department of Education (USDE) for student loans that were based on duplicate entries. The School did not follow requirements for draw down nor did the School qualify for these additional drawn downs.

Corrective Action Plan

1)A software update modification was required for the FA processor to post entries correctly to our Student Information System (SIS). Planned Completion Date: Completed 2)Financial Aid Office is reviewing all student accounts to ensure qualifying disbursements are posted when each draw down occurs. The Accounting team is doing monthly three-way reconciliations between the bank account, SIS, and reports from the financial aid processor to ensure all systems reflect the same amounts for draw downs. Financial Management will review and sign off on the monthly reconciliations. Planned Completion Date: On-going. 3)The School will repay the overdrawn loans to the USDE. Planned Completion Date: In process.

Categories

Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 598537 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loan Program $2.10M
84.063 Federal Pell Grant Program $1.26M
84.425 Higher Education Emergency Relief Fund III $362,445
84.425 Higher Education Emergency Relief Fund II $102,555
84.007 Federal Supplemental Education Opportunity Grants $35,681
84.033 Federal Work Study $31,374