Finding 2367 (2020-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2021
Accepted
2023-11-26
Audit: 4064
Organization: Concordia College (NY)

AI Summary

  • Core Issue: One out of eleven student verifications lacked evidence of review by the Financial Aid Department.
  • Impacted Requirements: Documentation for verification processes was not maintained due to the College's closure, affecting compliance with federal guidelines.
  • Recommended Follow-Up: Ensure proper documentation practices are established for future verifications to prevent similar issues.

Finding Text

2020-006 Special Tests - Verification FALN Number: 84.268 / 84.063 / 84.007 / 84.379 Program or Cluster Name: Federal Direct Student Loans / Federal Pell Grant Program / Federal Work-Study Program / Federal Supplemental Educational Opportunity Grants / Teacher Education Assistance for College and Higher Education (Student Financial Assistance Cluster) Agency: U.S. Department of Education Condition: For one of eleven students selected for verification, it was noted that no evidence of review by the Financial Aid Department was performed of the verification worksheet or supporting documentation. Status: Due to the closure of the College, the review of the documents obtained during the verification process was not documented either digitally or in paper format. Student and financial scholarship records could not be provided and as such the correction of the finding could not be verified. See current year finding 2021-002.

Corrective Action Plan

Management’s Response: Concordia College ceased academic operations in August 2021 and is in the process of winding down its operations and completing its remaining compliance requirements. Subsequent to the announcement of the closure of the College and following the ceasing of academic operations, virtually all employees left their employ with the College. The significant turnover in personnel, transition to outside consultants, and preparing proper teach out and transition plans for remaining students was a much larger focus than compliance requirements, which led to additional time lapsing between the prior year when findings were discovered to the current report being sent out. Additionally, due to the shutdown of Banner and the time taken to complete the audit, it is difficult for the College to obtain historical student and financial information pertaining to the period under audit.

Categories

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

Other Findings in this Audit

  • 2362 2021-002
    Material Weakness
  • 2363 2020-002
    Material Weakness
  • 2364 2020-003
    Significant Deficiency
  • 2365 2020-004
    Material Weakness Repeat
  • 2366 2020-005
    Material Weakness
  • 2368 2020-007
    Significant Deficiency Repeat
  • 2369 2020-008
    Material Weakness Repeat
  • 2370 2020-009
    Significant Deficiency
  • 2371 2020-010
    Material Weakness
  • 2372 2020-011
    Material Weakness
  • 2373 2020-012
    Material Weakness
  • 2374 2020-013
    Material Weakness
  • 578804 2021-002
    Material Weakness
  • 578805 2020-002
    Material Weakness
  • 578806 2020-003
    Significant Deficiency
  • 578807 2020-004
    Material Weakness Repeat
  • 578808 2020-005
    Material Weakness
  • 578809 2020-006
    Significant Deficiency
  • 578810 2020-007
    Significant Deficiency Repeat
  • 578811 2020-008
    Material Weakness Repeat
  • 578812 2020-009
    Significant Deficiency
  • 578813 2020-010
    Material Weakness
  • 578814 2020-011
    Material Weakness
  • 578815 2020-012
    Material Weakness
  • 578816 2020-013
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.06M
84.063 Federal Pell Grant Program $1.52M
84.007 Federal Supplemental Educational Opportunity Grants $40,768
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $33,031