Finding 33833 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-11-08
Audit: 31739
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There were delays in processing Title IV funds in the Common Origination and Disbursement (COD) system, with some funds not reported at all.
  • Impacted Requirements: Institutions must report disbursement records within 15 days, as mandated by federal regulations.
  • Recommended Follow-Up: Implement monitoring controls to ensure timely processing of loans in COD and address any system denials promptly.

Finding Text

2022-003 Student Financial Assistance Program Cluster ? Department of Education Federal Financial Assistance Listing/CFDA #84.268 Federal Direct Student Loans - 2020/2021 P268K211430 Federal Financial Assistance Listing/CFDA #84.063 Federal Pell Grant Program - 2020/2021 P063P201430 Reporting? Common Origination and Disbursement System Material Weakness in Internal Control over Compliance and Noncompliance Criteria: An institution must submit Pell Grant, Iraq and Afghanistan Service Grant, Direct Loan, and TEACH Grant disbursement records to COD, no later than 15 days after making the disbursement or becoming aware of the need to adjust a previously reported disbursement. In accordance with 34 CFR 668.164(a), Title IV, HEA program funds are disbursed on the date that the institution: (a) credits those funds to a student?s account in the institution?s general ledger or any subledger of the general ledger; or (b) pays those funds to a student directly. Title IV, HEA program funds are disbursed even if an institution uses its own funds in advance of receiving program funds from the Department. Condition: Three instances were noted where Title IV funds were applied to the student account but were not processed in COD within the required timeframe. Another two instances were noted where Title IV funds were applied to the student account but were not processed in COD at all. Cause: There was no process in place to monitor and correct denials from the COD system in a timely manner. Effect: COD data was not reflective of the date the aid was applied to the student account. Questioned Costs: None Context/Sampling: Non-statistical sampling was performed. Five instances were identified in 60 students tested. 290 students received Pell disbursements and 669 students received direct loan disbursements. Repeat Finding from Prior Years: Yes Recommendation: The University should implement controls to ensure loans applied to student accounts are processed in COD within required time frame and monitor and address denials in a timely manner. Views of Responsible Officials: Management agrees. Management?s complete response can be found in the separately issued corrective action plan.

Categories

Student Financial Aid Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 33826 2022-002
    Material Weakness Repeat
  • 33827 2022-003
    Material Weakness Repeat
  • 33828 2022-004
    Significant Deficiency
  • 33829 2022-002
    Material Weakness Repeat
  • 33830 2022-003
    Material Weakness Repeat
  • 33831 2022-004
    Significant Deficiency
  • 33832 2022-001
    Material Weakness Repeat
  • 33834 2022-004
    Significant Deficiency
  • 610268 2022-002
    Material Weakness Repeat
  • 610269 2022-003
    Material Weakness Repeat
  • 610270 2022-004
    Significant Deficiency
  • 610271 2022-002
    Material Weakness Repeat
  • 610272 2022-003
    Material Weakness Repeat
  • 610273 2022-004
    Significant Deficiency
  • 610274 2022-001
    Material Weakness Repeat
  • 610275 2022-003
    Material Weakness Repeat
  • 610276 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.58M
84.063 Federal Pell Grant Program $1.35M
84.031 Higher Education_institutional Aid $817,999
84.038 Federal Perkins Loan Program $581,255
93.264 Nurse Faculty Loan Program (nflp) $398,144
93.364 Nursing Student Loans $262,752
84.007 Federal Supplemental Educational Opportunity Grants $148,548
84.033 Federal Work-Study Program $85,170
97.067 Homeland Security Grant Program $32,856
84.425 Education Stabilization Fund $11,705
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $3,772