Finding 393943 (2023-005)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-04-22
Audit: 304126
Auditor: Moss Adams LLP

AI Summary

  • Core Issue: The College is failing to identify students who have withdrawn, leading to incomplete R2T4 calculations for federal funds.
  • Impacted Requirements: Noncompliance with 34 CFR 668.22 regarding the return of Title IV funds and proper documentation of withdrawal dates.
  • Recommended Follow-up: Review and enhance policies and controls for identifying withdrawals and performing R2T4 calculations; ensure accurate documentation is maintained.

Finding Text

2023-005 – Special Tests and Provisions – Return of Title IV Funds (R2T4) – Material Weakness in Internal Controls over Compliance and Material Noncompliance Student Financial Assistance Cluster Department of Education Federal Assistance Listing Number: 84.063, 84.268, 84.007 95 Federal Program Name: Federal Pell Grant Program, Federal Direct Student Loans, Supplemental Educational Opportunity Grant Criteria – In accordance with 34 CFR 668.22 when a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student’s withdrawal date. Condition/context – The College is not properly identifying students who have withdrawn from the institution for whom a R2T4 calculation is necessary. The College was unable to provide a complete population of official and unofficial withdrawals with accurate withdrawal dates for testing. Questioned costs – Undeterminable. Cause/effect – This occurred because of lack of controls and processes in place to ensure supporting documentation is maintained for student’s withdrawal dates, and a lack of understanding of compliance requirements. This resulted in a failure to properly identify students requiring calculation for return of funds to the federal government, or eligibility for post withdrawal disbursement. As a result, we were unable to determine if the College is remitting unearned funds to the federal government, or offering eligible students post withdrawal disbursements if available to them. Repeat finding – No Recommendation – We recommend the College review their policies, procedures and controls to ensure students who have withdrawn from the institution are being identified, and that R2T4 calculations are performed and maintained for those students. We also recommend the College ensure all withdrawals have the appropriate documentation to support the withdrawal date used in the calculation. Views of responsible officials and planned corrective actions – Responsible Individuals: Michael N. Espinoza, Vice President of Student Services Corrective Action Plan: The college entered into a third-party contract to manage financial aid packaging and awarding. Integration and processes for the R2T4 calculation with the third-party processer was not completed correctly. New integrations, policies, and processes to be adopted in fiscal year 2023-24.  Develop and implement ongoing tracking and reporting for all financial aid reporting.  Financial Aid and Student Accounts work to regularly review and action student account files.  Continue to work with third-party service to review and promptly return Title IV funding in compliance with federal rulings. Anticipated Completion Date: to be completed by June 30, 2024

Categories

Questioned Costs Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Eligibility Material Weakness Reporting

Other Findings in this Audit

  • 393937 2023-004
    Material Weakness Repeat
  • 393938 2023-005
    Material Weakness
  • 393939 2023-006
    Material Weakness
  • 393940 2023-007
    Material Weakness Repeat
  • 393941 2023-008
    Material Weakness
  • 393942 2023-004
    Material Weakness Repeat
  • 393944 2023-006
    Material Weakness
  • 393945 2023-007
    Material Weakness Repeat
  • 393946 2023-008
    Material Weakness
  • 393947 2023-006
    Material Weakness
  • 393948 2023-008
    Material Weakness
  • 393949 2023-003
    Significant Deficiency Repeat
  • 393950 2023-002
    Significant Deficiency
  • 393951 2023-003
    Significant Deficiency Repeat
  • 970379 2023-004
    Material Weakness Repeat
  • 970380 2023-005
    Material Weakness
  • 970381 2023-006
    Material Weakness
  • 970382 2023-007
    Material Weakness Repeat
  • 970383 2023-008
    Material Weakness
  • 970384 2023-004
    Material Weakness Repeat
  • 970385 2023-005
    Material Weakness
  • 970386 2023-006
    Material Weakness
  • 970387 2023-007
    Material Weakness Repeat
  • 970388 2023-008
    Material Weakness
  • 970389 2023-006
    Material Weakness
  • 970390 2023-008
    Material Weakness
  • 970391 2023-003
    Significant Deficiency Repeat
  • 970392 2023-002
    Significant Deficiency
  • 970393 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $942,670
93.575 Child Care and Development Block Grant $630,641
84.268 Federal Direct Student Loans $558,373
84.031 Higher Education_institutional Aid $381,383
84.002 Adult Education - Basic Grants to States $175,865
47.076 Education and Human Resources $148,410
10.855 Distance Learning and Telemedicine Loans and Grants $133,145
17.278 Wia Dislocated Worker Formula Grants $132,043
59.037 Small Business Development Centers $123,459
17.259 Wia Youth Activities $106,556
17.277 Workforce Investment Act (wia) National Emergency Grants $87,845
84.425 Education Stabilization Fund $72,208
17.258 Wia Adult Program $71,202
15.228 Blm Fuels Management and Community Fire Assistance Program Activities $62,972
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $21,397
21.027 Coronavirus State and Local Fiscal Recovery Funds $21,314
84.033 Federal Work-Study Program $12,388