Finding 30434 (2022-010)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 24262
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The institution lacks a documented quality assurance process for federal student loan compliance.
  • Impacted Requirements: This violates Direct Loan regulations requiring quality assurance to meet program objectives.
  • Recommended Follow-Up: Implement and regularly review a formal quality assurance process to ensure compliance.

Finding Text

Finding No. 2022-010?Special Tests ? Disbursement to or on Behalf of Students Federal Agency: U.S. Department of Education Program: Federal Direct Student Loans: ALN: 84.268 Criteria: The Direct Loan regulations at 34 CFR 685.300(b)(9) requires the institution to implement and document a quality assurance process to ensure that they are complying with program requirements and meeting program objectives. Condition: The institution does not have a documented quality assurance process. Questioned Costs: None Prevalence: There was no documented quality assurance process for the year ended June 30, 2022. Effect: Not following requirements could result in the DOE withholding payments to the Conservatory. Cause: There was significant turnover in the finance and financial aid department and a lack of formal documentation and filing of policies and procedures surrounding administering financial aid. Recommendation: We recommend that the Conservatory implement a formal documented quality assurance process, to review this process on a regular basis and document that the process is being used. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and corrective actions have been made.

Corrective Action Plan

Finding NO.2022-010 ? Special Tests ? Disbursement to or on Behalf of Students Finding: The institution does not have a documented Direct Loan quality assurance process. Corrective Action Taken or Planned: New Office of Financial Aid staff are documenting the quality assurance process and having the process reviewed by consultants with expertise in Direct Loan regulations. Expected to be completed April 2023. Responsible person Rebecca Barry-Wolff, Associate Director of Student Financial Planning.

Categories

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

Other Findings in this Audit

  • 30432 2022-008
    Significant Deficiency
  • 30433 2022-009
    Significant Deficiency
  • 30435 2022-009
    Significant Deficiency
  • 30436 2022-009
    Significant Deficiency
  • 30437 2022-009
    Significant Deficiency
  • 30438 2022-003
    Significant Deficiency
  • 30439 2022-004
    Significant Deficiency
  • 30440 2022-005
    Material Weakness
  • 30441 2022-006
    Significant Deficiency Repeat
  • 30442 2022-007
    Significant Deficiency
  • 30443 2022-009
    Significant Deficiency
  • 30444 2022-003
    Significant Deficiency
  • 30445 2022-004
    Significant Deficiency
  • 30446 2022-005
    Material Weakness
  • 30447 2022-006
    Significant Deficiency Repeat
  • 606874 2022-008
    Significant Deficiency
  • 606875 2022-009
    Significant Deficiency
  • 606876 2022-010
    Significant Deficiency
  • 606877 2022-009
    Significant Deficiency
  • 606878 2022-009
    Significant Deficiency
  • 606879 2022-009
    Significant Deficiency
  • 606880 2022-003
    Significant Deficiency
  • 606881 2022-004
    Significant Deficiency
  • 606882 2022-005
    Material Weakness
  • 606883 2022-006
    Significant Deficiency Repeat
  • 606884 2022-007
    Significant Deficiency
  • 606885 2022-009
    Significant Deficiency
  • 606886 2022-003
    Significant Deficiency
  • 606887 2022-004
    Significant Deficiency
  • 606888 2022-005
    Material Weakness
  • 606889 2022-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.39M
84.038 Federal Perkins Loans $1.45M
84.425 Covid-19 - Education Stabilization Fund $468,940
84.033 Federal Work-Study Program $287,786
84.063 Federal Pell Grant Program $222,747
84.007 Federal Supplemental Educational Opportunity Grants $121,997
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $75,888