Finding 390403 (2023-002)

Finding 2023-002 - U.S. Department of Education (USDE). Title IV Student Financial Aid Programs (Deficiency): Information on the federal program: Federal Direct Student Loans, CFDA No. 84. 268, June 30, 2023; Federal Pell Grants Program, CFDA No. 84. 063, June 30, 2023; Federal Supplemental Educational Opportunity Grant, CFDA No. 84. 007, June 30, 2023; Federal Work-Study Program, CFDA No. 84. 033, June 30, 2023. Criteria - Federal regulations governing Title IV programs. Condition - Non-compliances were noted, as more fully described in the context below. Questioned Costs- None. Context- We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs a) One (1) out of six (6) students tested for R2T4 did not have Title IV funds returned to the Federal government within the required 45 days. Title IV HEA 34 CFR 668.22. b) The College was not reconciling between Financial Aid and Business Office on the monthly basis per SFA Handbook Ch. 5 CFR668.161-668.176. Cause - Oversight by responsible employees. Effect- The College's participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding - yes Auditor's Recommendation - We recommend that the College ensure adequate documentation is obtained and kept on file as evidence that all expenditures meet allowable cost and other requirements under the grant program. Views of Responsible Officials - Management agrees with this finding. The College will place additional emphasis on the R2T4 of funds. Management is reviewing the timing of presentation of situations to Financial Aid that require returning funds to the Department. Additional focus will be placed on procedures to timely report withdraws to Financial Aid to support returned funds in the required 45 days. In addition, the College prepares monthly reconciliations between Financial Aid and the Business Office, but often delayed in completion. Going forward, the reconciliation will be noted on the monthly closing list and requires both the Assistant Vice President of Financial Aid and Controller to sign and date the reconciliation to demonstrate compliance with the monthly requirement.