Finding 343 (2023-001)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2023-10-18
Audit: 719
Organization: Southern Virginia University (VA)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University failed to report certain Pell Grant disbursements to the COD system within the required 15-day timeframe.
  • Impacted Requirements: Non-compliance with COD reporting requirements, specifically for 2 out of 40 disbursement records tested.
  • Recommended Follow-Up: Enhance procedures for timely and accurate disbursement record submissions to prevent future delays.

Finding Text

Federal Program Information: Federal Pell Grant Program (ALN 84.063) 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. 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 40 Pell disbursement records tested, the disbursement was not reported to COD within 15 calendar days. Identification as a Repeat Finding: This is a repeat of prior year Finding 2022-001. Recommendation: We recommend the University enhance its procedures over disbursement record submissions to ensure timely and accurate reporting to COD. Views of Responsible Officials: This finding affected a mere 2 of 40 records tested. Corrective action has been taken. The financial aid office has set up daily disbursement record submissions through its financial aid processing system, Jenzabar Financial Aid, which will simplify the process and prevent reporting delays.

Corrective Action Plan

Name of Responsible Individual: Sarah Christoffersen, Interim Director of Financial Aid Corrective Action: This finding affected a mere 2 of 40 records tested. Corrective action has been taken. The financial aid office has set up daily disbursement record submissions through its financial aid processing system, Jenzabar Financial Aid, which will simplify the process and prevent reporting delays. Anticipated Completion Date: Completed

Categories

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

Other Findings in this Audit

  • 344 2023-002
    Significant Deficiency Repeat
  • 345 2023-002
    Significant Deficiency Repeat
  • 346 2023-003
    -
  • 347 2023-003
    -
  • 348 2023-003
    -
  • 349 2023-003
    -
  • 576785 2023-001
    - Repeat
  • 576786 2023-002
    Significant Deficiency Repeat
  • 576787 2023-002
    Significant Deficiency Repeat
  • 576788 2023-003
    -
  • 576789 2023-003
    -
  • 576790 2023-003
    -
  • 576791 2023-003
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.60M
84.063 Federal Pell Grant Program $2.59M
84.007 Federal Supplemental Educational Opportunity Grants $69,716
84.033 Federal Work-Study Program $40,048
84.425 Education Stabilization Fund $23,482