FAC Explorer

Finding 33152 (2022-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 29056
Organization: Presbyterian College (SC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: Student payment data for the Pell Grant was not submitted on time, violating federal reporting requirements.
  • Impacted Requirements: Institutions must report payment data within 7 to 15 days of disbursement or adjustments, as mandated by the Department of Education.
  • Recommended Follow-Up: Enhance internal controls and procedures to ensure timely reporting, and maintain consistent training for staff to prevent future compliance issues.

Finding Text

Federal Program Information: Federal Pell Grant Program (ALN#: 84.063) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Reporting - Common Origination and Disbursement ("COD") System - All institutions receiving Pell grants submit Pell payment data to the Department of Education through the COD System. Institutions must report student payment data no earlier than 7 days before and no later than 15 days after the institution makes a payment or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data (ED Notice, July 14, 2020, Federal Register (85 Federal Register 42368)). Condition: Instances were identified where the student payment data was not submitted within the required timeframe. Cause: Insufficient administrative oversight and insufficient internal control with respect to disbursement compliance requirements. Effect: The College was not in compliance with the Pell reporting compliance requirements. Questioned Costs: None. Context: For 27 of 40 students selected for testing, the student payment data was not submitted within the required timeframe. Identification as a Repeat Finding: This is a repeat finding of prior year finding 2021-003. Recommendation: We recommend the College enhance its procedures and internal controls to ensure Pell payment data is submitted to the Department of Education within the required timeframe. Views of Responsible Officials and Planned Corrective Actions: It is a compliance requirement to report Pell files to the Department of Education through the COD system. 27 student files were identified as a compliance finding out of the 40 students sampled. This is a repeat finding from the prior year (June 30, 2021) but had not been an issue in previous audits. The Office of Financial Aid has experienced significant turnover in its staffing during fiscal years June 30, 2021 and 2022. This included employing two different Directors, the second of which vacated the position in June 2022. The staffing of the Financial Aid Office has since stabilized and the new Director has implemented practices whereby the office is now receiving and sending files to the COD system daily. This allows for resolving issues/rejects much sooner and within the 15-day timeframe. The Director has also conducted training with financial aid staff to emphasize the importance of sending files and resolving issues in a timely fashion.

Corrective Action Plan

Individuals Responsible for Corrective Action Plan Jeff Scaccia, CPA (Vice President for Finance and Administration) Libby Shull, CPA (Controller) April Baur, (Director of Student Financial Aid) For 27 of 40 students tested, per review of the COD screenshot provided by the client, the College did not report required Pell disbursements via the COD within 15 calendar days. Corrective Action Plan: It is a compliance requirement to report Pell files to the Department of Education through the COD system. 27 student files were identified as a compliance finding out of the 40 students sampled. This is a repeat finding from the prior year (June 30, 2021), but had not been an issue in previous audits. The Office of Financial Aid has experienced significant turnover in its staffing during fiscal years June 30, 2021 and 2022. This included employing two different Directors, the second of which vacated the position in June 2022. The staffing of the Financial Aid Office has since stabilized and the new Director has implemented practices whereby the office is now receiving and sending files to the COD system daily. This allows for resolving issues/rejects much sooner and within the 15-day timeframe. The Director has also conducted training with financial aid staff to emphasize the importance of sending files and resolving issues in a timely fashion. Anticipated Completion Date: August 31, 2022

Categories

Student Financial Aid Internal Control / Segregation of Duties HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants Cluster $58.41M
84.268 Federal Direct Student Loans $17.38M
84.063 Federal Pell Grant Program $1.40M
84.425 Covid-19 Higher Education Emergency Relief Fund (heerf) Student Portion $1.33M
84.425 Covid-19 Higher Education Emergency Relief Fund (heerf) - Institutional Portion $1.33M
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $326,944
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Administrative Core $172,635
84.033 Federal Work-Study Program $114,034
84.007 Federal Supplemental Educational Opportunity Grant $88,750
21.027 Coronavirus State and Local Fiscal Recovery Funds $60,000
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Determining the Mechanisms of Heat Shock Protein 90 Regulation of Morphine Tolerance $54,736
47.050 Rui: Characterization and Modeling Space Weather Geomagnetic Fluctuations $29,926
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Dna Methylation Patterns of Mammary Stem Cells As An Indicator of Breast Cancer Plasticity $19,642
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Administrative Supplement: Epigenetic and Mrna Translational Control Mediated by Adherens Protein Plekha7 $12,300
43.008 Mist 2021: Modeling Magnetic Storms $7,500
43.008 Undergraduate Student Research Award $7,500
84.379 Teacher Education Assistance for College and Higher Education Grants $3,772
43.008 Reap 2021-22: Dissemination of Research on Magnetospheric Ulf Waves $2,000
43.008 Space Grant Campus Director $1,500
84.038 Federal Perkins Loan Program $0