Finding 23051 (2022-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-21
Audit: 18257
Organization: Manna University (NC)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The University failed to perform required monthly reconciliations of Pell Grants and Direct Loans on a student-by-student basis.
  • Impacted Requirements: This oversight violates federal regulations, potentially leading to discrepancies that could affect student and institutional eligibility for federal aid.
  • Recommended Follow-Up: Implement monthly reconciliations and promptly resolve any discrepancies to comply with federal requirements.

Finding Text

Monthly Reconciliations of Pell Grant and Federal Direct Loans Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: Under Federal Financial Responsibility regulations and Federal Direct Loan regulations, the College is required to reconcile the Pell grants and Direct Loans disbursed between Common Origination and Disbursement (COD), the student information system, and student accounts on a monthly basis. This reconciliation should be on a student-by-student basis to identify any discrepancies between systems. Additionally, any discrepancies that arise during the reconciliation process should be resolved at that time. Criteria: 34 CFR 685.300(b)(5) and 34 CFR 668 Subpart L Questioned Costs:$0 Context: During the fiscal year-end, the University did not complete any monthly reconciliations on a student-by-student basis. Cause: This was an oversight by the University. Effect: There could be discrepancies between systems that could impact student eligibility and institutional eligibility for Federal Student Aid. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University implement monthly reconciliations and resolve any discrepancies as outlined in the regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Eligibility Significant Deficiency

Other Findings in this Audit

  • 23049 2022-003
    Significant Deficiency
  • 23050 2022-004
    - Repeat
  • 23052 2022-004
    - Repeat
  • 23053 2022-005
    - Repeat
  • 599491 2022-003
    Significant Deficiency
  • 599492 2022-004
    - Repeat
  • 599493 2022-003
    Significant Deficiency
  • 599494 2022-004
    - Repeat
  • 599495 2022-005
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $446,858
84.425 Covid-19 Education Stabilization Fund Heerf - Fund for the Improvement of Postsecondary Education Formula Grant $379,936
84.063 Federal Pell Grant Program $364,523
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $78,833
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $54,175