FAC Explorer

Finding 391127 (2023-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-01
Audit: 301715
Organization: Sioux Falls School District 49-5 (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: A student did not receive timely notification regarding their Title IV financial aid disbursement.
  • Impacted Requirements: Compliance with 34 CFR section 668.165 (a) (1) regarding timely notifications to students about their aid.
  • Recommended Follow-Up: Review disbursement processes to ensure all students receive timely notifications, allowing them to decide on their awards.

Finding Text

2023-004 Department of Education Student Financial Aid Cluster CFDA # 84.268 – Federal Direct Student Loans 2022-2023 Award Year Special Tests and Provision – Disbursements to or on Behalf of Students Significant Deficiency in Internal Controls over Compliance and Noncompliance Criteria: 34 CFR section 668.165 (a) (1) provides the applicable criteria and guidance the School District must comply with to notify students of the amount and type of Title IV funds they are expected to receive, and how and when those disbursements will be made. . Condition: During testing over disbursement notifications, one student did not receive the notification on a timely basis. Cause: The student was awarded aid at an off time in the semester, and the notification was not provided until the beginning of the semester. Effect: The student was not given the proper notification to decline the award they were receiving. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 61 students who received Title IV disbursements out of 1,496 students who received aid. Repeat Finding from Prior Year(s): No. Recommendation: We recommend disbursements made be reviewed to ensure that the notifications are being provided to students on a timely basis to let the student determine if they want to decline or amend the award. Views of Responsible Officials: Management agrees with the finding. The Financial Aid Office uses system automation for compliance with notification to students. Additional match of record numbers to notification numbers has been added.

Corrective Action Plan

Identifying Number: 2023-004: U.S. Department of Education: Student Financial Aid Cluster – 84.268, Federal Direct Student Loans Finding: During testing of disbursement notifications, one student did not receive the notification in a timely manner. Corrective Action Taken or Planned: STC Financial Aid Office will continue to monitor disbursements and work to create a report of notifications sent or errors so that notifications are not missed. Contact person: Micah Hansen, Director of Financial Aid, Southeast Technical College Status of finding – The above corrective actions will be implemented beginning July 1, 2024.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 391126 2023-003
    Significant Deficiency
  • 391128 2023-005
    Material Weakness
  • 391129 2023-002
    Material Weakness Repeat
  • 967568 2023-003
    Significant Deficiency
  • 967569 2023-004
    Significant Deficiency
  • 967570 2023-005
    Material Weakness
  • 967571 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.72M
10.555 National School Lunch Program $6.50M
84.010 Title I Grants to Local Educational Agencies $6.28M
93.600 Head Start $3.51M
84.063 Federal Pell Grant Program $3.06M
10.553 School Breakfast Program $1.54M
84.367 Improving Teacher Quality State Grants $1.16M
84.048 Career and Technical Education -- Basic Grants to States $1.08M
10.582 Fresh Fruit and Vegetable Program $548,841
84.011 Migrant Education_state Grant Program $535,990
84.424 Student Support and Academic Enrichment Program $483,876
84.060 Indian Education_grants to Local Educational Agencies $348,924
84.365 English Language Acquisition State Grants $335,584
84.425 Education Stabilization Fund $263,217
84.196 Education for Homeless Children and Youth $184,769
93.576 Refugee and Entrant Assistance_discretionary Grants $153,934
84.287 Twenty-First Century Community Learning Centers $137,525
10.559 Summer Food Service Program for Children $131,057
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $116,133
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $114,637
84.002 Adult Education - Basic Grants to States $110,548
84.007 Federal Supplemental Educational Opportunity Grants $92,010
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $57,220
93.575 Child Care and Development Block Grant $51,913
84.173 Special Education_preschool Grants $36,318
84.033 Federal Work-Study Program $30,646
10.558 Child and Adult Care Food Program $14,225
12.404 National Guard Challenge Program $13,246
15.130 Indian Education_assistance to Schools $12,197
84.027 Special Education_grants to States $9,457
93.913 Grants to States for Operation of Offices of Rural Health $6,000
45.025 Promotion of the Arts_partnership Agreements $3,851
84.181 Special Education-Grants for Infants and Families $3,361
64.028 Post-9/11 Veterans Educational Assistance $2,704