Finding 387722 (2023-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-03-28

Audit: 299776

Organization: Beacon College, Inc. (FL)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: Disbursement dates reported to the COD system were inaccurate for 17 out of 40 awards tested.
Impacted Requirements: Reporting must comply with Department of Education regulations (34 CFR 690.83(b)(2) and 34 CFR 685.301(c)).
Recommended Follow-Up: The College should review and improve its reporting policies and procedures to ensure accuracy.

Finding Text

2023–002 Common Origination and Disbursement (COD) Reporting Federal Agency: Department of Education Federal Program: Student Financial Aid Cluster CFDA Numbers: 84.268 – Federal Direct Loan Program, 84.063 Pell Grant Program Award Period: July 1, 2022 to June 30, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance Other Matter Criteria or specific requirement: The Department of Education requires institutions to report disbursement dates and amounts to the COD system (34 CFR 690.83(b)(2) for Pell and 34 CFR 685.301(c) for Direct Loans). Condition: For 17 of the 40 awards tested, the disbursement dates reported to COD were one day later than the date the award was recorded in the student’s account. Questioned costs: None. Context: 4 of the 17 awards were Pell awards and 13 were Direct Loan awards. Cause: The College’s policies and procedures did not ensure that all disbursement dates were reported accurately. Effect: The disbursement dates reported to COD were not accurate. Repeat finding: No. Recommendation: We recommend that the College review their reporting policies and procedures to ensure accurate reporting. Views of responsible officials and planned corrective actions: See Corrective Action Pan prepared by the College.

Corrective Action Plan

Recommendation: We recommend that the College review their reporting policies and procedures to ensure accurate reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: In Beacon’s previous student billing system (Sonis, in use until February 2023), Beacon had recuring difficulties posting certain transactions to student accounts, causing Financial Aid staff or the Jenzabar program administrator to work behind the scenes to get transactions entered. Since our conversion to Jenzabar J1, we have not encountered these difficulties. Secondly, a schedule of posting transactions to the student accounts has been established depending upon when the transaction is received from Financial Aid. This schedule should ensure that posting of transactions is performed timely and predictably. Name(s) of the contact person(s) responsible for corrective action: Daphne Parks, Vice President of Processing at FAS; Stephanie Knight, Director of Enrollment Services & Financial Aid, Beacon College Planned completion date for corrective action plan: Completed.

Other Findings in this Audit

387723 2023-001

Significant Deficiency
387724 2023-002

Significant Deficiency
964164 2023-002

Significant Deficiency
964165 2023-001

Significant Deficiency
964166 2023-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.268	Federal Direct Student Loans	$4.68M
84.063	Federal Pell Grant Program	$731,146
84.007	Federal Supplemental Educational Opportunity Grants	$95,000
84.033	Federal Work-Study Program	$56,443