Finding 385091 (2023-004)

- Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-03-27
Audit: 298219
Auditor: Sikich LLP

AI Summary

  • Core Issue: The College failed to report actual loan disbursement dates for 1 out of 40 students, leading to noncompliance with federal regulations.
  • Impacted Requirements: This finding relates to the eligibility compliance requirement under 34 CFR 668.164 (a)(1), and it is a repeat issue from the previous year.
  • Recommended Follow-up: The College should establish procedures to ensure accurate reporting of disbursement dates for Direct Loans to the NSLDS.

Finding Text

Criteria: 34 CFR 668.164 (a)(1) states “Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student’s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 1 of the 40 students in the sample (2.5%). We consider this condition to be an instance of noncompliance in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2022-004. Statistical sampling was not used in making sample selections. Questioned Costs: N/A Cause and Effect: The College noted this was an error that occurred but did not occur with the entire batch. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

Our Correction Plan will be to check monthly that loan disbursements correctly match with COD. While progress was definitely made from the prior year, it is important that every student disbursement is correctly shown by the Business Office.

Categories

Student Financial Aid Eligibility Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.27M
84.063 Federal Pell Grant Program $1.06M
84.033 Federal Work-Study Program $957,859
84.038 Federal Perkins Loan Program $75,937
84.007 Federal Supplemental Educational Opportunity Grants $59,400
84.425 Education Stabilization Fund $31,926