Finding 25363 (2022-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-09
Audit: 25035
Organization: Donnelly College (KS)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The College's reported disbursement dates and amounts for Federal Direct Loans and Pell Grants do not match the records in the Common Origination and Disbursement (COD) system.
  • Impacted Requirements: Timely and accurate reporting of financial aid data as mandated by federal regulations (34 CFR 690.83 and related guidance).
  • Recommended Follow-Up: The College should enhance its reconciliation processes to ensure accurate data submission to COD, addressing previous findings and staffing challenges.

Finding Text

Student Financial Assistance Cluster U.S. Department of Education Federal Direct Student Loans 84.268 Federal Pell Grant Program 84.063 Award Year 2022 Criteria or Specific Requirement - Reporting. According to 34 CFR 690.83, Dear Colleague Letter Gen 13-13, and Federal Register Volume 84, Number 212, November 1, 2019 an institution must submit Pell and Direct Loan origination records and disbursement records to the Common Origination and Disbursement (COD) in a timely and accurate manner. Condition - Federal Direct Loan and Pell disbursement dates per the College's billing system did not agree with the reported dates per the Common Origination Disbursement (COD) records. Cost of attendance, transaction numbers, and the Pell award amount did not agree between the student?s files and COD records. Questioned Costs - None. Context - Out of a population of 159 students receiving Direct Loan awards during the year, a sample of 24 students was selected for testing. Out of these 24 students selected for testing, there were three instances in which the student's transaction code per the College's origination records was not consistent with the COD. The sample was not, and was not intended to be, a statistically valid sample. Out of a population of 251 students receiving Pell awards during the year, a sample of 25 students was selected for testing. Out of these 25 students selected for testing, there were nine instances in which the student's Cost of Attendance were not consistent with the COD. There were four instances in which the student's disbursement date per the College's records was not consistent with the COD. Finally, there was one instance in which the student's disbursement amount per the College's records was not consistent with the COD. The sample was not, and was not intended to be, a statistically valid sample. Effect - The College did not report the accurate data (e.g., disbursement dates, amounts, and cost of attendance) to the COD. Cause - Lack of reconciliation of student origination records to data provided to the COD. Identification as a Repeat Finding - Yes, see 2021-002, 2020-004 and 2019-003. Recommendation - The College should review and update its processes and controls to ensure a formal reconciliation is provided for student origination records to the COD. Views of Responsible Officials and Planned Corrective Actions - This was neglected due to staffing issues and high turnover. Pell and Direct Loan origination records and disbursement records are submitted to the Common Origination Disbursement (COD) either same business day, or next business day. Formal reconciliation process is now completed every 1-2 months in order to verify disbursement dates, amounts, and cost of attendance in COD.

Corrective Action Plan

Finding Reference 2022-002 Contact Person: Stephani Berry Views of Responsible Officials and Planned Corrective Action: This was neglected due to staffing issues and high turnover. Pell and Direct Loan origination records and disbursement records are submitted to the Common Origination Disbursement (COD) either same business day, or next business day. Formal reconciliation process is now completed every 1-2 months in order to verify disbursement dates, amounts, and cost of attendance in COD. Anticipated Completion Date: March 21, 2022

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Reporting

Other Findings in this Audit

  • 25364 2022-003
    Significant Deficiency Repeat
  • 25365 2022-004
    Significant Deficiency Repeat
  • 25366 2022-005
    Significant Deficiency
  • 25367 2022-002
    Significant Deficiency Repeat
  • 25368 2022-004
    Significant Deficiency Repeat
  • 25369 2022-006
    Significant Deficiency
  • 25370 2022-007
    Significant Deficiency
  • 25371 2022-008
    Significant Deficiency Repeat
  • 25372 2022-010
    Significant Deficiency
  • 25373 2022-009
    Significant Deficiency
  • 601805 2022-002
    Significant Deficiency Repeat
  • 601806 2022-003
    Significant Deficiency Repeat
  • 601807 2022-004
    Significant Deficiency Repeat
  • 601808 2022-005
    Significant Deficiency
  • 601809 2022-002
    Significant Deficiency Repeat
  • 601810 2022-004
    Significant Deficiency Repeat
  • 601811 2022-006
    Significant Deficiency
  • 601812 2022-007
    Significant Deficiency
  • 601813 2022-008
    Significant Deficiency Repeat
  • 601814 2022-010
    Significant Deficiency
  • 601815 2022-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.031 Higher Education Institutional Aid $1.87M
84.063 Federal Pell Grant Program $982,270
84.425 Covid-19 - Education Stabilization Fund - Institutional Portion $589,866
84.268 Federal Direct Student Loans $517,992
84.425 Covid-19 - Education Stabilization Fund - Student Portion $398,972
45.130 Promotion of the Humanities_challenge Grants $370,000
84.042 Trio_student Support Services $332,680
84.120 Minority Science and Engineering Improvement $161,918
84.033 Federal Work-Study Program $61,508
84.007 Federal Supplemental Educational Opportunity Grants $59,724
47.076 Stem Education (formerly Education and Human Resources) $11,050
84.425 Covid-19 Education Stabilization Fund - Minority Serving Institutions $5,000