Finding 28782 (2022-001)

-
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 28863
Organization: Southern Virginia University (VA)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The University failed to report certain student disbursements to the COD system within the required 15 calendar days.
  • Impacted Requirements: Disbursement records did not accurately reflect the actual disbursement dates, violating COD reporting standards.
  • Recommended Follow-Up: Enhance procedures for disbursement submissions to ensure timely and accurate reporting; corrective actions have been initiated with a new processing system.

Finding Text

Federal Program Information: Federal Pell Grant Program (ALN 84.063), Federal Direct Student Loans (ALN 84.268) Criteria or Specific Requirement: L. Reporting ? Common Origination and Disbursement System Reporting: Institutions submit Federal Direct Loan Program, Federal Pell Grant Program, and TEACH Grant origination records and disbursement records to the Common Origination and Disbursement (COD) system. Origination records can be sent well in advance of any disbursements, as early as the institution chooses to submit them for any student the institution reasonably believes will be eligible for a payment. An institution follows up with a disbursement record for that student no earlier than (1) seven calendar days prior to the disbursement date under the Advance or Heightened Cash Monitoring 1 payment methods, or (2) the date of the disbursement under the Reimbursement or Heightened Cash Monitoring 2 Payment Method. The disbursement record reports the actual disbursement date and the amount of the disbursement. The U.S. Department of Education (the ?ED?) processes origination and/or disbursement records and returns acknowledgments to the institution. The acknowledgments identify the processing status of each record: Rejected, Accepted with Corrections, or Accepted. Institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. Institutions may do this by reporting once every 15 calendar days, bi-weekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner. Condition: Certain student disbursements were not reported to COD within 15 calendar days as required; certain disbursement records did not reflect the actual disbursement date. Cause: Administrative oversight. Effect or Potential Effect: The University was not in compliance with the COD reporting requirements. Questioned Costs: None. Context: For 2 of 25 Pell disbursement records tested, the disbursement was not reported to COD within 15 calendars days. For 1 of 25 Pell disbursement records tested, the actual disbursement date was not accurately reported to COD. For 1 of 25 Direct Loan disbursement records tested, the disbursement was not reported to COD within 15 calendar days. For 1 of 25 Direct Loan disbursement records tested, the actual disbursement date was not accurately reported to COD. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the University enhance its procedures over disbursement record submissions to ensure timely and accurate reporting to COD. Views of Responsible Officials: Corrective action was taken. The University has since transitioned to a new Financial Aid processing system, Jenzabar Financial Aid (JFA), that automatically sends updates daily, making regular uploads of files to COD much simpler.

Corrective Action Plan

Name of Responsible Individual: Aaron Carlson, Executive Director of Financial Aid Corrective Action: Corrective action was taken. The University has since transitioned to a new Financial Aid processing system, Jenzabar Financial Aid (JFA), that automatically sends updates daily, making regular uploads of files to COD much simpler. Completion Date: Completed

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Subrecipient Monitoring Cash Management Reporting

Other Findings in this Audit

  • 28780 2022-002
    Significant Deficiency Repeat
  • 28781 2022-002
    Significant Deficiency Repeat
  • 28783 2022-002
    Significant Deficiency Repeat
  • 28784 2022-003
    Significant Deficiency Repeat
  • 28785 2022-001
    -
  • 28786 2022-002
    Significant Deficiency Repeat
  • 28787 2022-003
    Significant Deficiency Repeat
  • 28788 2022-004
    -
  • 605222 2022-002
    Significant Deficiency Repeat
  • 605223 2022-002
    Significant Deficiency Repeat
  • 605224 2022-001
    -
  • 605225 2022-002
    Significant Deficiency Repeat
  • 605226 2022-003
    Significant Deficiency Repeat
  • 605227 2022-001
    -
  • 605228 2022-002
    Significant Deficiency Repeat
  • 605229 2022-003
    Significant Deficiency Repeat
  • 605230 2022-004
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.19M
84.063 Federal Pell Grant Program $2.95M
84.425 Education Stabilization Fund $159,531
84.007 Federal Supplemental Educational Opportunity Grants $66,097
84.033 Federal Work-Study Program $48,470