Finding 369073 (2022-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-14
Audit: 290469
Organization: Wheeling Jesuit University INC (WV)

AI Summary

  • Core Issue: The University failed to reconcile its School Account Statement (SAS) data with financial records for the entire fiscal year, repeating a prior finding.
  • Impacted Requirements: This deficiency violates federal requirements for maintaining an adequate system of internal controls over federal programs.
  • Recommended Follow-Up: Implement timely SAS reconciliation procedures and fill the vacant financial aid director position to ensure compliance with federal regulations.

Finding Text

Finding 2022-002 - Significant Deficiency - Review of School Account Statement (SAS) Reconciliations Repeat of Prior Year Finding 2021-004 Program: Federal Direct Student Loans Assistance Listing Number: 84.268 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2022 Criteria: Recipients of federal awards are required to administer its federal programs with an adequate system of internal controls over applicable compliance requirements. Condition: The University did not reconcile its SAS data file to its financial records for all 12 months of the fiscal year.   Cause: Lack of competency and turnover in the financial aid office contributed to the University not being able to perform the reconciliations in the required timeframe. Effect: The potential exists that an error could occur in the financial records and not be detected and corrected within a timely manner by employees in the normal course of performing their assigned functions. Questioned Costs: Not applicable. Context: The key position of financial aid director was vacant for part of the testing period. This position is responsible for proper enrollment reporting. Recommendation: The University should implement policies and procedures to ensure that the monthly SAS reconciliations are performed on a timely basis and correct all errors to adhere to federal regulations. Management's Response: Management agrees with this finding and has recognized their need for a qualified individual who is knowledgeable about financial aid requirements.

Corrective Action Plan

FINDING 2022 – 002: Repeat of Prior Year Finding 2021-004 Name of Responsible Individual: Joyce Lubeck-Sonenberg, Acting Director of Financial Aid Type of Finding: Federal Award Findings and Questioned Costs Criteria: Recipients of federal awards are required to administer its federal programs with an adequate system of internal controls over applicable compliance requirements. Condition: The University did not reconcile its SAS data file to its financial records for all 12 months of the fiscal year. Corrective Action: Wheeling University has implemented several significant corrective actions towards improving the reconciliation requirements for the Pell and Direct Loan Programs. A highly administratively capable staff person has been promoted to Assistant Director and demonstrates a level of financial aid leadership that is appreciated throughout the campus community. This individual has received extensive regulatory and technical training regarding the federal requirements to monthly reconcile cash received from the G5 account with disbursements submitted to the COD System. In addition to confirming the accuracy of monthly reconciliation efforts, this approach allows the FA office to compare internal awarding databases against COD’s database for Pell and Direct Loan awards and identify discrepancies that require further attention. Also, this assists the University to be better prepared to perform efficient and accurate closeout activities at year-end. Previous audit findings showed little evidence of accurate reconciliation efforts. In working with the University IT Department, monthly reconciliation files are now housed in a shared electronic file system, easily retrieved for review, and are confirmed for accuracy by the acting Director of Financial Aide each month. Anticipated Completion Date: This process was completed in March of 2023 and is ongoing.

Categories

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

Other Findings in this Audit

  • 369070 2022-005
    Material Weakness Repeat
  • 369071 2022-005
    Material Weakness Repeat
  • 369072 2022-006
    Significant Deficiency
  • 369074 2022-003
    - Repeat
  • 369075 2022-004
    -
  • 369076 2022-006
    Significant Deficiency
  • 369077 2022-007
    Significant Deficiency Repeat
  • 369078 2022-007
    Significant Deficiency Repeat
  • 369079 2022-008
    -
  • 369080 2022-008
    -
  • 369081 2022-009
    - Repeat
  • 369082 2022-009
    - Repeat
  • 945512 2022-005
    Material Weakness Repeat
  • 945513 2022-005
    Material Weakness Repeat
  • 945514 2022-006
    Significant Deficiency
  • 945515 2022-002
    Significant Deficiency Repeat
  • 945516 2022-003
    - Repeat
  • 945517 2022-004
    -
  • 945518 2022-006
    Significant Deficiency
  • 945519 2022-007
    Significant Deficiency Repeat
  • 945520 2022-007
    Significant Deficiency Repeat
  • 945521 2022-008
    -
  • 945522 2022-008
    -
  • 945523 2022-009
    - Repeat
  • 945524 2022-009
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.17M
84.038 Federal Perkins Loan Program $1.27M
84.063 Federal Pell Grant Program $882,038
93.859 Biomedical Research and Research Training $243,170
84.425 Education Stabilization Fund $178,333
84.007 Federal Supplemental Educational Opportunity Grants $118,500
84.033 Federal Work-Study Program $94,730
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,088
93.364 Nursing Student Loans $2,025