Finding 390441 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-30
Audit: 301235
Organization: Oregon Tech (OR)

AI Summary

  • Core Issue: The University failed to return three outstanding SFA checks to the U.S. Department of Education within the required 240 days.
  • Impacted Requirements: This finding violates 34 CFR 668.164(l) regarding timely return of uncashed checks and effective internal controls over federal awards.
  • Recommended Follow-Up: Enhance policies for handling stale-dated checks to ensure compliance and timely returns moving forward.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 Federal Award Identification Number and Year: P268K32067, 2022-2023 Award Period: July 1, 2022 – June 30, 2023 Type of Finding:  Other Matters  Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 34 CFR 668.164(l) requires an institution must have a process that ensures SFA funds never escheat to a state or revert to the institution. Additionally, if a check sent to a student or parent is not returned to the institution but is not cashed, the institution must return the funds to the Secretary no later than 240 days after the date it issued the check. Additionally, Institutions must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the Institution is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award (2 CFR 200.303). Condition: During our testing of outstanding SFA checks, we identified three checks outstanding that had not been returned to the U.S. Department of Education within 240 days. Questioned costs: None Context: Out of our population of 31 outstanding checks, we noted three had the exception described above. Cause: The University did not have a process in place when these checks were created in fiscal year 2021; when a process was created, it was not retroactively applied to all outstanding SFA checks to date. Effect: The University did not return all SFA funds timely to the Department of Education. Repeat Finding: No Recommendation: CLA recommends that the University enhance its policies and procedures regarding stale-dated check escheatment to ensure that the funds are returned to the appropriate program within 240 days from the date of issue. Views of responsible officials: The University agrees with the finding. Management has developed a plan to correct the finding.

Corrective Action Plan

Student Financial Assistance Cluster – Assistance Listing No. 84.268 Recommendation: CLA recommends that the University enhance its policies and procedures regarding stale-dated check escheatment to ensure that the funds are returned to the appropriate program within 240 days from the date of issue. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management respectfully agrees on all findings and recommendations. Management will engage in additional staff training and is committed to consistent application of current policies and procedures regarding stale-dated federal student financial aid outstanding checks. Management will implement additional procedures, returning checks issued directly by the University that stale-dated, similar to policies and procedures followed by the University’s third-party credit balance refund vendor. As part of this procedure, management will engage in student communication and outreach, similar to the University’s regular escheatment procedures. Management believes that a consistent practice between University-issued checks and third-party credit balance refund vendor-issued checks is in the best interest of students while also adhering to U.S. Department of Education timing requirements. Name(s) of the contact person(s) responsible for corrective action: Karissa Sultan Planned completion date for corrective action plan: June 30, 2024

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 390438 2023-001
    Significant Deficiency
  • 390439 2023-001
    Significant Deficiency
  • 390440 2023-001
    Significant Deficiency
  • 390442 2023-003
    Significant Deficiency
  • 390443 2023-003
    Significant Deficiency
  • 390444 2023-003
    Significant Deficiency
  • 390445 2023-004
    Significant Deficiency
  • 966880 2023-001
    Significant Deficiency
  • 966881 2023-001
    Significant Deficiency
  • 966882 2023-001
    Significant Deficiency
  • 966883 2023-002
    Significant Deficiency
  • 966884 2023-003
    Significant Deficiency
  • 966885 2023-003
    Significant Deficiency
  • 966886 2023-003
    Significant Deficiency
  • 966887 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $14.76M
84.063 Federal Pell Grant Program $4.32M
11.300 Investments for Public Works and Economic Development Facilities $1.59M
93.493 Congressional Directives $707,134
84.038 Federal Perkins Loan $686,316
84.215 Fund for the Improvement of Education $392,825
84.425 Education Stabilization Fund $274,879
84.007 Federal Supplemental Educational Opportunity Grants $257,952
84.042 Trio_student Support Services $189,492
84.033 Federal Work-Study Program $91,145
43.001 Science $70,885
21.019 Coronavirus Relief Fund $56,400
17.259 Wia Youth Activities $38,674
20.701 University Transportation Centers Program $38,477
47.049 Mathematical and Physical Sciences $32,714
47.084 Nsf Technology, Innovation, and Partnerships $18,963
15.247 Wildlife Resource Management $13,749
43.008 Education $12,291
10.868 Rural Energy for America Program $7,320
47.076 Education and Human Resources $6,215
66.516 P3 Award: National Student Design Competition for Sustainability $3,407
12.000 Department of Defense $440