Finding 32752 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-22
Audit: 29386
Organization: Lemoyne-Owen College (TN)

AI Summary

  • Core Issue: The College failed to comply with federal regulations for Title IV programs, including late fund returns and unaccounted discrepancies in financial records.
  • Impacted Requirements: Compliance with federal regulations for Federal Pell Grants, Federal Work Study, SEOG, and Direct Student Loans.
  • Recommended Follow-Up: Implement corrective actions and strengthen internal controls, including staff training and quality assurance reviews, to prevent future compliance issues.

Finding Text

Finding 2022-002 - U.S. Department of Education (USDE). Title IV Student Financial Aid Programs (Significant Deficiency): Information on the Federal Program - Federal Pell Grants Program, CFDA No. 84. 063, June 30 2022; Federal Work Study Program, CFDA No. 84.033, June 30, 2022; Federal Supplemental Educational Opportunity Grant, CFDA No. 84.007, June 30, 2022; Federal Direct Student Loans, CFDA No. 84. 268, June 30, 2022. Criteria - Federal regulations governing the Title IV programs. Condition - Numerous compliances were noted, as more fully described in the context below. Questioned Costs - Context- We observed the following condition in connection with our testing of the various U. S. Department of Education, Title IV, Student Financial Assistance Programs: a) Two (2) out of 60 students selected for R2T4 testing did not have his/her funds returned to the U.S. Department of Education within the required 45 days. b) The College had differences in the following programs which were not reconciled to the general ledger: Federal Work Study, Federal Pell Grant, Federal Direct Student Loans and Federal Supplemental Educational Opportunity Grant (SEOG). Cause - Oversight by responsible employees of properly monitoring required elements. Effect - The College's participation in the Title IV programs could be subject to USDE sanctions as applicable. Auditor's Recommendation - The College should implement corrective actions to ensure that the above findings are resolved and does not recur in future periods. Moreover, internal controls over compliance with federal program regulations should be revisited to ensure adequate supervisory controls, quality assurance reviews of compliance steps, technical training of staff, and adequate procedures are being followed for compliance purposes.

Categories

Student Financial Aid Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32751 2022-002
    Significant Deficiency
  • 32753 2022-002
    Significant Deficiency
  • 32754 2022-002
    Significant Deficiency
  • 32755 2022-003
    Significant Deficiency
  • 32756 2022-003
    Significant Deficiency
  • 609193 2022-002
    Significant Deficiency
  • 609194 2022-002
    Significant Deficiency
  • 609195 2022-002
    Significant Deficiency
  • 609196 2022-002
    Significant Deficiency
  • 609197 2022-003
    Significant Deficiency
  • 609198 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $4.35M
84.268 Federal Direct Student Loans $3.12M
84.063 Federal Pell Grant Program $2.39M
84.007 Federal Supplemental Educational Opportunity Grants $482,882
84.031 Higher Education_institutional Aid $383,946
84.033 Federal Work-Study Program $124,522
12.905 Cybersecurity Core Curriculum $45,700
84.120 Minority Science and Engineering Improvement $13,524
12.903 Gencyber Grants Program $9,746
47.076 Education and Human Resources $232