Finding 24075 (2022-003)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
$1
Year
2022
Accepted
2023-03-28
Audit: 20750
Organization: Pacific Islands Bible College (GU)

AI Summary

  • Core Issue: The University failed to credit students' accounts before requesting funds, violating cash management rules.
  • Impacted Requirements: Noncompliance with 34 CFR 668.162(d) and 668.164(h), leading to questioned costs of $55,915.
  • Recommended Follow-Up: Management should enhance controls and work with a financial aid consultant to ensure compliance with cash management regulations.

Finding Text

Federal Agency: U.S. Department of Education Assistance Listing Number and Title: Student Financial Aid (SFA) Cluster Award Number: Various Area: Cash Management Questioned Cost: $55,915 Criteria: 34 CFR 668.162(d) states that under the heightened cash monitoring payment method, an institution must credit a student's ledger account for the amount of Title IV HEA program funds that the student or parent is eligible to receive, and pay the amount of any credit balance due under ? 668.164(h), before the institution submits a request for funds under the provisions of the advance payment method described in paragraphs (b)(1) and (2) of 34 CFR 668.162, except that the institution's request may not exceed the amount of the disbursements the institution has made to the students included in that request. Condition: Of the 75 samples tested, we noted 29 samples (or 39%) where the University did not credit the student?s ledger account before submitting a request for funds. Further, we noted 3 (or 4%) samples where the University made the disbursement beyond 3 days following the receipt of funds. Cause: The University lacks effective controls to ensure compliance with cash management requirements. Effect: The University is noncompliant with cash management requirements. Known questioned costs exist amounting to $55,915. Identification as a repeat finding: 2021-005 Recommendation: The University?s management should review the requirements of the Uniform Guidance and coordinate with its third-party private financial aid consultant in developing and implementing effective controls over compliance with cash management requirements. Views of responsible officials: Management agrees. Refer to Corrective Action Plan.

Corrective Action Plan

Area: Cash Management Views of Auditee and Planned Corrective Action: PIU agrees with the finding. PIU will review the requirements of the Uniform Guidance and understand the cash management principal requirements. Once this is done, PIU will implement procedures and update the Business Office Manual. Anticipated Completion Date: May 31, 2023 Name of Contact Person and Title: Celia Atoigue, Director of Finance

Categories

Questioned Costs Cash Management Student Financial Aid Subrecipient Monitoring

Other Findings in this Audit

  • 24076 2022-004
    Significant Deficiency
  • 24077 2022-007
    Significant Deficiency Repeat
  • 24078 2022-003
    Material Weakness Repeat
  • 24079 2022-004
    Significant Deficiency
  • 24080 2022-007
    Significant Deficiency Repeat
  • 24081 2022-003
    Material Weakness Repeat
  • 24082 2022-004
    Significant Deficiency
  • 24083 2022-007
    Significant Deficiency Repeat
  • 24084 2022-003
    Material Weakness Repeat
  • 24085 2022-004
    Significant Deficiency
  • 24086 2022-005
    Significant Deficiency
  • 24087 2022-006
    Significant Deficiency Repeat
  • 24088 2022-007
    Significant Deficiency Repeat
  • 600517 2022-003
    Material Weakness Repeat
  • 600518 2022-004
    Significant Deficiency
  • 600519 2022-007
    Significant Deficiency Repeat
  • 600520 2022-003
    Material Weakness Repeat
  • 600521 2022-004
    Significant Deficiency
  • 600522 2022-007
    Significant Deficiency Repeat
  • 600523 2022-003
    Material Weakness Repeat
  • 600524 2022-004
    Significant Deficiency
  • 600525 2022-007
    Significant Deficiency Repeat
  • 600526 2022-003
    Material Weakness Repeat
  • 600527 2022-004
    Significant Deficiency
  • 600528 2022-005
    Significant Deficiency
  • 600529 2022-006
    Significant Deficiency Repeat
  • 600530 2022-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $459,258
84.268 Federal Direct Student Loans $214,991
84.425 Education Stabilization Fund $80,000
84.033 Federal Work-Study Program $4,896
84.007 Federal Supplemental Educational Opportunity Grants $4,840