FAC Explorer

Finding 391395 (2023-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-01
Audit: 301916
Organization: Bethany Lutheran College, Inc. (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Lack of formalized reconciliation process for Federal Work Study, Supplemental Educational Opportunity Grants, and Perkins Loans.
  • Impacted Requirements: Non-compliance with U.S. Department of Education documentation and review criteria.
  • Recommended Follow-Up: Implement a formal yearly reconciliation process for the affected programs.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number 84.007 – Federal Supplemental Educational Opportunity Grants 84.033 – Federal Work-Study Program 84.038 – Federal Perkins Loan Program Award Period: July 1, 2022 to June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: No documentation of review as it relates to Federal Work Study, Perkins, and Supplemental Education Opportunity Grants. Condition: During testing we noted there is no formalized process of Federal Work Study, Supplemental Education Opportunity Grants, and Perkins reconciliations. Questioned Costs: None Context: During our testing, it was noted there is no formalized process of Federal Work Study, Supplemental Education Opportunity Grants, and Perkins reconciliations. Cause: Management could incorrectly have amounts of their Federal Work Study, Supplemental Education Opportunity Grants, and Perkins at year-end. Effect: The College is not in compliance with Department of Education requirements. Repeat Finding: No Auditor’s Recommendation: We recommend the College implements a formalized yearly reconciliation of Federal Work Study, Perkins, and Supplemental Education Opportunity Grants. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Corrective Action Plan

Title: Student Financial Assistance Cluster – Assistance Listing Nos. 84.038, 84.033, 84.007 Recommendation: We recommend the College implements a formalized yearly reconciliation of Federal Work Study, Perkins, and Supplemental Education Opportunity Grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: FWS: Jeff Younge, Director of Financial Aid, directs Business Office on when to pull funds. Reconciliation between financial aid system and payroll system is done annually, prior to end of fiscal year by Director of Financial Aid. Piece we will add is for Director of Financial Aid to verify amounts requested to be pulled actually got pulled by Business Office. This has not been a problem, but additional step will serve as an extra safeguard so that all stays in balance. Perkins: No new Perkins loans are being made. Annual FISAP serves as reconciliation for this program. SEOG: Jeff Younge, Director of Financial Aid, directs Business Office on when to pull funds at time of disbursement. Piece we will add is for Director of Financial Aid to verify amounts requested to be pulled actually got pulled by Business Office. This has not been a problem, but additional step will serve as an extra safeguard so that all stays in balance. Name of the contact person responsible for corrective action: Jeff Younge, Director of Financial Aid Planned completion date for corrective action plan: 3/26/2024

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 391385 2023-002
    Significant Deficiency
  • 391386 2023-002
    Significant Deficiency
  • 391387 2023-002
    Significant Deficiency
  • 391388 2023-002
    Significant Deficiency
  • 391389 2023-002
    Significant Deficiency
  • 391390 2023-003
    Significant Deficiency
  • 391391 2023-003
    Significant Deficiency
  • 391392 2023-003
    Significant Deficiency
  • 391393 2023-003
    Significant Deficiency
  • 391394 2023-003
    Significant Deficiency
  • 391396 2023-004
    Significant Deficiency
  • 391397 2023-004
    Significant Deficiency
  • 391398 2023-005
    Significant Deficiency
  • 391399 2023-005
    Significant Deficiency
  • 391400 2023-005
    Significant Deficiency
  • 391401 2023-005
    Significant Deficiency
  • 391402 2023-005
    Significant Deficiency
  • 967827 2023-002
    Significant Deficiency
  • 967828 2023-002
    Significant Deficiency
  • 967829 2023-002
    Significant Deficiency
  • 967830 2023-002
    Significant Deficiency
  • 967831 2023-002
    Significant Deficiency
  • 967832 2023-003
    Significant Deficiency
  • 967833 2023-003
    Significant Deficiency
  • 967834 2023-003
    Significant Deficiency
  • 967835 2023-003
    Significant Deficiency
  • 967836 2023-003
    Significant Deficiency
  • 967837 2023-004
    Significant Deficiency
  • 967838 2023-004
    Significant Deficiency
  • 967839 2023-004
    Significant Deficiency
  • 967840 2023-005
    Significant Deficiency
  • 967841 2023-005
    Significant Deficiency
  • 967842 2023-005
    Significant Deficiency
  • 967843 2023-005
    Significant Deficiency
  • 967844 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.50M
84.063 Federal Pell Grant Program $811,317
84.038 Federal Perkins Loan Program $164,622
84.033 Federal Work-Study Program $36,806
84.007 Federal Supplemental Educational Opportunity Grants $32,667