FAC Explorer

Finding 423464 (2022-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 312353
Organization: State System of Higher Education, Commonwealth of Pennsylvania (PA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Kutztown University failed to report Pell Grant disbursements to the COD system within the required 15 days.
  • Impacted Requirements: This finding violates Department of Education regulations (34 CFR 690.83(b)(2) and 34 CFR 685.309) regarding timely reporting of financial aid.
  • Recommended Follow-Up: The University should revise its policies and procedures to ensure timely and accurate reporting of aid disbursements to prevent future discrepancies.

Finding Text

2022 ? 006Federal Agency: Department of EducationFederal Program Name: Student Financial Assistance ClusterAssistance Listing Number: 84.063Federal Award Identification Number and Year: P063P212135, P063P222135; all grants were awarded within the 2020-21 and 2021-22 award yearsAward Period: July 1, 2021 through June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance and Other MattersCriteria or Specific Requirement:The Department of Education requires the University to report the disbursement dates and amounts to the Common Origination and Disbursement (COD) system within 15 days of disbursing Pell (34 CFR 690.83(b)(2) and Direct Loan (34 CFR 685.309) funds to a student.Condition:Pell Grant disbursements to the students were not properly reported to the COD system by Kutztown University within the 15-day timeframe.Questioned Costs:NoneContext:During our testing at Kutztown University, we noted 1 of the 25 Pell disbursements tested were not reported to the Common Origination and Disbursement (COD) system within the required 15 days.Cause:The University?s policies and procedures did not ensure that aid disbursement information was timely reported to COD.Effect:Students? interest accrues based on disbursement date reported to COD, thus interest calculation could be skewed due to the discrepancy in disbursement dates reported.Repeat Finding:NoRecommendation:We recommend the University should review its policies and procedures around COD reporting to ensure students? information is reporting timely and accurately.Views of Responsible Officials:Management agrees with the finding and has developed a plan to correct the finding.

Corrective Action Plan

Kutztown: Recommendation: The University should review its policies and procedures around COD reporting to ensure students? information is reported timely and accurately.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: We are reviewing our policies and procedures for COD reporting. A financial aid resource will refine their calendar to ensure that we are in compliance with the 15-day rule for PELL reporting is met consistently.Name(s) of the contact person(s) responsible for corrective action: Bernard McCree, Director of Financial Aid Services, at 610-683-4032 or mccree@kutztown.edu.Planned completion date for corrective action plan: June 30, 2023

Categories

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

Other Findings in this Audit

  • 423459 2022-004
    Significant Deficiency
  • 423460 2022-004
    Significant Deficiency
  • 423461 2022-003
    Significant Deficiency Repeat
  • 423462 2022-003
    Significant Deficiency Repeat
  • 423463 2022-004
    Significant Deficiency
  • 423465 2022-002
    Significant Deficiency Repeat
  • 423466 2022-003
    Significant Deficiency Repeat
  • 423467 2022-004
    Significant Deficiency
  • 423468 2022-005
    Significant Deficiency
  • 423469 2022-007
    Significant Deficiency Repeat
  • 423470 2022-001
    Significant Deficiency Repeat
  • 423471 2022-001
    Significant Deficiency Repeat
  • 999901 2022-004
    Significant Deficiency
  • 999902 2022-004
    Significant Deficiency
  • 999903 2022-003
    Significant Deficiency Repeat
  • 999904 2022-003
    Significant Deficiency Repeat
  • 999905 2022-004
    Significant Deficiency
  • 999906 2022-006
    Significant Deficiency
  • 999907 2022-002
    Significant Deficiency Repeat
  • 999908 2022-003
    Significant Deficiency Repeat
  • 999909 2022-004
    Significant Deficiency
  • 999910 2022-005
    Significant Deficiency
  • 999911 2022-007
    Significant Deficiency Repeat
  • 999912 2022-001
    Significant Deficiency Repeat
  • 999913 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $503.35M
84.063 Federal Pell Grant Program $113.75M
84.038 Federal Perkins Loan Program $15.14M
59.037 Small Business Development Centers $7.39M
93.575 Child Care and Development Block Grant $7.13M
84.033 Federal Work-Study Program $5.13M
84.007 Federal Supplemental Educational Opportunity Grants $4.96M
84.011 Migrant Education_state Grant Program $4.21M
93.732 Mental and Behavioral Health Education and Training Grants $2.28M
84.031 Higher Education_institutional Aid $2.17M
17.504 Consultation Agreements $1.97M
59.075 Shuttered Venue Operators Grant Program $1.45M
93.600 Head Start $1.29M
84.048 Career and Technical Education -- Basic Grants to States $1.18M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.17M
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $1.13M
84.042 Trio_student Support Services $982,940
12.002 Procurement Technical Assistance for Business Firms $581,600
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $511,929
12.902 Information Security Grants $498,078
93.364 Nursing Student Loans $489,958
84.407 Transition Programs for Students with Intellectual Disabilities Into Higher Education $487,773
84.044 Trio_talent Search $478,074
99.U05 Little Daniels Run Mitigation $349,737
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $347,899
84.149 Migrant Education_college Assistance Migrant Program $335,799
16.550 State Justice Statistics Program for Statistical Analysis Centers $295,286
84.047 Trio_upward Bound $295,143
16.738 Edward Byrne Memorial Justice Assistance Grant Program $294,935
14.241 Housing Opportunities for Persons with Aids $277,071
84.425 Education Stabilization Fund $263,144
11.008 Noaa Mission-Related Education Awards $258,736
20.600 State and Community Highway Safety $227,555
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $222,743
47.050 Geosciences $204,792
84.335 Child Care Access Means Parents in School $180,530
47.041 Engineering $143,152
16.575 Crime Victim Assistance $136,215
93.173 Research Related to Deafness and Communication Disorders $124,874
17.502 Occupational Safety and Health_susan Harwood Training Grants $118,598
93.279 Drug Abuse and Addiction Research Programs $109,012
47.049 Mathematical and Physical Sciences $101,965
81.049 Office of Science Financial Assistance Program $94,664
17.245 Trade Adjustment Assistance $81,250
10.025 Plant and Animal Disease, Pest Control, and Animal Care $80,160
10.558 Child and Adult Care Food Program $75,360
12.903 Gencyber Grants Program $70,087
15.945 Cooperative Research and Training Programs ? Resources of the National Park System $63,055
43.001 Science $59,040
12.740 Past Conflict Accounting $58,795
93.599 Chafee Education and Training Vouchers Program (etv) $58,500
93.262 Occupational Safety and Health Program $54,845
66.717 Source Reduction Assistance $53,795
19.009 Academic Exchange Programs - Undergraduate Programs $52,686
47.079 Office of International Science and Engineering $50,519
84.116 Fund for the Improvement of Postsecondary Education $49,617
64.034 Va Assistance to United States Paralympic Integrated Adaptive Sports Program $47,936
47.076 Education and Human Resources $45,494
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $42,826
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $39,000
93.307 Minority Health and Health Disparities Research $38,810
45.130 Promotion of the Humanities_challenge Grants $38,306
12.300 Basic and Applied Scientific Research $35,549
47.078 Polar Programs $29,942
10.902 Soil and Water Conservation $29,248
47.075 Social, Behavioral, and Economic Sciences $28,749
93.172 Human Genome Research $25,147
15.815 National Land Remote Sensing_education Outreach and Research $22,908
15.634 State Wildlife Grants $22,415
99.U07 Department of Defense $22,263
93.788 Opioid Str $20,407
93.865 Child Health and Human Development Extramural Research $20,331
10.680 Forest Health Protection $20,304
99.U04 Ralston Run/ashton Dam $19,354
10.303 Integrated Programs $17,112
99.U06 Sreb Cu Arel $16,190
93.185 Immunization Research, Demonstration, Public Information and Education_training and Clinical Skills Improvement Projects $15,712
15.248 National Landscape Conservation System (b) $14,428
93.859 Biomedical Research and Research Training $13,934
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $13,791
20.205 Highway Planning and Construction $13,299
94.006 Americorps $11,841
10.912 Environmental Quality Incentives Program $10,794
84.367 Improving Teacher Quality State Grants $10,682
15.654 Visitor Facility Enhancements - Refuges and Wildlife $9,999
45.025 Promotion of the Arts_partnership Agreements $9,450
11.457 Chesapeake Bay Studies $9,187
10.351 Rural Business Development Grant $8,746
23.001 Appalachian Regional Development (see Individual Appalachian Programs) $8,664
10.200 Grants for Agricultural Research, Special Research Grants $8,228
47.070 Computer and Information Science and Engineering $8,006
15.662 Great Lakes Restoration $8,002
43.008 Education $7,947
15.670 Adaptive Science $7,092
99.U02 Wetlands Mitigation Project $6,200
23.002 Appalachian Area Development $6,036
47.074 Biological Sciences $5,862
93.124 Nurse Anesthetist Traineeships $5,726
47.083 Integrative Activities $5,177
94.012 September 11th National Day of Service and Remembrance Grants $4,504
10.683 National Fish and Wildlife Foundation $4,277
45.024 Promotion of the Arts_grants to Organizations and Individuals $3,671
21.019 Coronavirus Relief Fund $3,671
15.954 National Park Service Conservation, Protection, Outreach, and Education $3,500
99.U08 Va-Once (u.s. Department of Veterans Affairs) $2,605
99.U03 Marchezak Farm Stream Mitigation Project II $2,567
45.169 Promotion of the Humanities_office of Digital Humanities $2,119
19.408 Academic Exchange Programs - Teachers $966
15.663 Nfwf-Usfws Conservation Partnership $363
45.129 Promotion of the Humanities_federal/state Partnership $300
99.U01 Communities Talk to Prevent Underage Drinking $250
10.652 Forestry Research $188