Finding 370632 (2023-004)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-02-27
Audit: 292330
Organization: High Point University (NC)

AI Summary

  • Core Issue: The University failed to verify compliance with Federal Work-Study program rules, allowing students to earn aid during class time.
  • Impacted Requirements: Institutions must ensure students do not work during scheduled class hours and that all payments are properly documented.
  • Recommended Follow-Up: Strengthen internal controls and consistently enforce policies to prevent future compliance issues in the Federal Work-Study program.

Finding Text

Information on Federal Program ‒ Federal Work-Study Program Assistance Listing Number 84.033 Criteria – Compliance Requirement N – Special Tests and Provisions – Institutions are required to verify students are not earning Federal Work-Study program financial aid during scheduled class time, and that all amounts paid are appropriately earned. Condition – During our testing of the Federal Work-Study program, we noted the following: • For 3 students out of 10 sampled, from a population of 289 students who received Federal Work- Study, the University was unable to verify the student was not earning Federal Work-Study Financial Aid during scheduled class time. • For 52 students out of a population of 289 students who received Federal Work-Study, the University was unable to verify time punches, which resulted in overpayments of Federal Work- Study aid; however, the aid was subsequently returned by the University. Cause – Management oversight and insufficient internal controls in the Federal Work-Study program, resulting in 3 students appearing to work during scheduled class time, and 52 students whose time entered and paid were not able to be verified. Effect – The students and the University were not in compliance with the Federal Work-Study program guidelines. Questioned Costs – $10,077 Context – As noted in the condition, 55 total exceptions were found, which resulted in the students and the University not being in compliance with the program rules. Indication of a Repeat Finding – This is a repeat finding 2022-002 from prior year. Recommendation – We recommend the University ensure its internal controls, policies and procedures are followed on a consistent basis regarding the Federal Work-Study Program. Views of Responsible Officials – The University consistently emphasizes to both its students and student supervisors that students should not work during their scheduled class times, regardless of whether the class is cancelled or ends early. This expectation is reiterated during training sessions for supervisors and through publications distributed to them.

Corrective Action Plan

Finding 2023-004 Program: Federal Work-Study Program CFDA No.: 84.033 Federal Agency: Department of Education Award Year: FY 2022 - 2023 Compliance Requirement: N – Special Tests and Provisions – Institutions are required to verify students are not earning Federal Work-Study program financial aid during scheduled class time, and that all amounts paid are appropriately earned. University’s Response: The University continues to emphasize and reinforce with its students and student supervisors the importance of not working during scheduled class hours, regardless of whether their jobs are funded by the Federal Work Study program or by the institution. This policy applies even if classes are canceled or let out early. The Student Employment Program holds annual training sessions for these responsible individuals and provides updated publications. As part of the University's student employment application process, students are required to submit their class schedules. Supervisors are expected to utilize these schedules and ensure that work schedules do not conflict with class times. Additionally, supervisors are expected to obtain students' class schedules each semester and update their work schedules accordingly, to prevent students from working during class hours. In the University’s effort to meet the FISAP correction deadline and out of an abundance of caution, all questionable work-study transaction funds were returned and converted to institutionally full-paid hours for these students. This action aims to avoid penalizing the students for any errors and to rectify potential misappropriation of federal work-study funds. Corrective Action Plan: The University’s Student Employment Office continues to send monthly emails to student employee supervisors and the student staff, reminding them of the student employment guidelines they are expected to abide by. This communication emphasizes their responsibility to adhere to these guidelines and to keep their supervisor informed of any changes to their class schedule that may require adjustments to their work schedule. Student employee supervisors are expected to hold a mandatory meeting with their student staff at or before the start of each semester. The University also continues its internal audit process, implemented in February 2023. A sample of student work records from the previous semester will be compared to students’ class schedules to ensure they are not working during class hours. This review will be conducted by Brad Calloway, Senior Vice President for Business Affairs. Any violations of the school's student employment policies identified in this audit will be reported to Marc Sears, Vice President of Human Resources, for necessary corrective action. In mid-January 2024, the University will institute the Give Pulse platform, which will integrate with the University’s current HR/Payroll timekeeping system, Workday. The Give Pulse platform will assist in flagging students whose work hours fall outside the parameters of hours worked. Further training and instruction to pay closer attention to these discrepancies, such as failing to clock out or working for eight or more hours in a day, will be provided to student employee supervisors as part of the monthly email communication. The University is investigating the feasibility of implementing parameters within Workday that would notify student supervisors when their student workers are clocked in for more than 8 hours straight as well as when they are nearing 20 hours of work in a week. This notification would enable supervisors to ensure the accuracy of their students' clocked hours and make adjustments if necessary. Name of Responsible Person: Jonathan Mador, Assistant Vice President of Student Financial Services; Sandra Fantauzzi, Student Employment Program Manager; Marc Sears, Vice President of Human Resources; Brad Calloway, Senior Vice President for Business Affairs Anticipated Completion Date: February 29, 2024

Categories

Questioned Costs Internal Control / Segregation of Duties Special Tests & Provisions HUD Housing Programs

Other Findings in this Audit

  • 370631 2023-003
    Significant Deficiency Repeat
  • 947073 2023-003
    Significant Deficiency Repeat
  • 947074 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $64.10M
84.063 Federal Pell Grant Program $2.80M
64.028 Post-9/11 Veterans Educational Assistance $2.24M
84.336 Teacher Quality Partnership Grants $1.11M
84.423 Supporting Effective Educator Development Program $1.07M
84.033 Federal Work-Study Program $289,911
84.007 Federal Supplemental Educational Opportunity Grants $268,862
93.279 Drug Abuse and Addiction Research Programs $171,254
93.959 Block Grants for Prevention and Treatment of Substance Abuse $120,947
84.425 Education Stabilization Fund $78,650
47.075 Social, Behavioral, and Economic Sciences $49,045
47.049 Mathematical and Physical Sciences $43,726
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $30,176
10.310 Agriculture and Food Research Initiative (afri) $28,885
47.076 Education and Human Resources $27,519
94.013 Volunteers in Service to America $25,735
43.001 Science $14,125
84.408 Postsecondary Education Scholarships for Veteran's Dependents $13,004
19.040 Public Diplomacy Programs $8,082
93.859 Biomedical Research and Research Training $7,532
12.750 Uniformed Services University Medical Research Projects $7,285
47.074 Biological Sciences $475
84.032 Federal Family Education Loan $0