FAC Explorer

Finding 403029 (2023-002)

Material Weakness
Requirement
ALN
Questioned Costs
-
Year
2023
Accepted
2024-06-26
Audit: 310169
Organization: Riverside Healthcare Association, Inc. (VA)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: Delays in refunding Title IV credit balances to students, with 19 out of 40 cases exceeding the 14-day requirement.
  • Impacted Requirements: Non-compliance with Department of Education regulations regarding timely refunds and lack of student authorization for retaining balances.
  • Recommended Follow-up: Review and strengthen controls in the financial aid department to ensure timely processing of refunds and proper student authorizations.

Finding Text

Condition Found: For 19 out of 40 students selected for testwork, the Title IV funds credited to the student resulted in a credit balance owed to the student. The institution did not refund the credit balances back to the student for more than a period of 14 days and did not obtain proper authorizations from the student to retain the balance. The delay in repayment ranged from 15 to 102 days. Cause and Possible Asserted Effect: It was identified that management had turnover in the financial aid department, which caused delays in recording and processing refunds among the accounting and accounts payable departments. This resulted in a failure by the institution to make payment to the students within the 14-day timeframe required by the Department of Education and did not obtain voluntary authorization from the student to retain the credit balances. Therefore, this evidenced the lack of an appropriately designed control by the institution to ensure credit balances are refunded to students within the timeframe requirements.

Corrective Action Plan

Corrective Action: Additional training is in progress for Financial Aid & Student Accounts staff to include a full review of processes and controls related to credit-balance payments within 14- days. The College’s third-party servicer, Global Financial Services, is assisting in this training to include the update of policies, processes, and controls, as well as the maintenance of evidentiary documentation. Contact Person: Michael Hamilton, Dean of Student Success Anticipated Completion Date: July 31, 2024

Categories

Student Financial Aid

Other Findings in this Audit

  • 403028 2023-001
    Material Weakness
  • 403030 2023-003
    Significant Deficiency
  • 403031 2023-004
    Significant Deficiency
  • 403032 2023-001
    Material Weakness
  • 403033 2023-002
    Material Weakness
  • 403034 2023-003
    Significant Deficiency
  • 403035 2023-004
    Significant Deficiency
  • 979470 2023-001
    Material Weakness
  • 979471 2023-002
    Material Weakness
  • 979472 2023-003
    Significant Deficiency
  • 979473 2023-004
    Significant Deficiency
  • 979474 2023-001
    Material Weakness
  • 979475 2023-002
    Material Weakness
  • 979476 2023-003
    Significant Deficiency
  • 979477 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $18.50M
93.498 Covid-19 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $11.78M
84.268 Federal Direct Student Loans $1.46M
84.063 Federal Pell Grant Program $560,876
16.575 Crime Victim Assistance $187,865
20.941 Strenthening Mobility and Revolutionizing Transportation (smart) Grants Program $83,709
93.898 Virginia Department of Health – Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $67,600
93.U01 Civil Monetary Penalty Funds $60,300
93.470 Alzheimer's Disease Program Initiative $42,424
93.969 Geriatric Workforce Enhancement Program $6,094
16.582 Crime Victim Assistance/discretionary Grants $6,042