Finding 387559 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-03-28
Audit: 299675
Organization: Valor Christian College (OH)
Auditor: Sikich LLP

AI Summary

  • Core Issue: Three out of twelve student refunds were issued late, violating the 45-day requirement set by the Department of Education.
  • Impacted Requirements: This finding highlights a material weakness in controls over refund processes, affecting compliance with federal regulations.
  • Recommended Follow-Up: The College should review all pending refunds for timeliness, implement a letter of credit, and enhance controls to prevent future delays.

Finding Text

FINDING 2023-002: LATE REFUNDS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: SFA CLUSTER ALN: 84.063, 84.268 FEDERAL AWARD YEAR: 2021-2022, 2022-2023 Compliance Requirement: Special Tests and Provisions - Return of Title IV Funds (N.) Criteria: The Department of Education requires that all refunds be made within 45 days of a student’s withdrawal (34 CFR 668.22, 685.306). Condition: We tested twelve drop students and noted three late refunds. We consider this finding to be a material weakness. Cause: The condition was caused by a breakdown in controls over paying refunds. Effect or Potential Effect: The result is the College retained funds which should have been returned to the Department of Education. Statistical sampling was not used when making sample selections. Questioned Costs : $10,739 Recommendation: We recommend the College review the remaining refunds for timeliness, post a letter of credit to remain compliant and increase controls over refunds. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

A: COMMENTS ON FINDING AND RECOMMENDATION(S): VALOR CHRISTIAN COLLEGE OCCURS WITH THE FINDING B: ACTIONS TAKEN OR PLANNED: VALOR COLLEGE HAS IMPLEMENTED A POLICY THAT WILL INCREASE AWARENESS OF STUDENTS WHO STOP ATTENDING THEIR COURSES. THEY POLICY CONTAINS TIGHTER RESTRICTIONS ON THE TRACKING OF ATTENDANCE AND WITHDRAWAL OF STUDENTS WHO FAIL TO PARTICIPATE. IN ADDITION, CAMPUS IVY HAS SCHEDULED A WEEKLY REVIEW OF RETURN OF TITLE IV FORMS TO ENSURE REFUNDS AND POST WITHDRAWAL DISBURSEMENTS ARE SCHEDULED IN A TIMELY MANNER.

Categories

Questioned Costs Special Tests & Provisions Student Financial Aid Material Weakness

Other Findings in this Audit

  • 387558 2023-001
    Material Weakness
  • 387560 2023-001
    Material Weakness
  • 387561 2023-002
    Material Weakness
  • 964000 2023-001
    Material Weakness
  • 964001 2023-002
    Material Weakness
  • 964002 2023-001
    Material Weakness
  • 964003 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.94M
84.063 Federal Pell Grant Program $1.05M