Finding 43420 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-26
Audit: 51802
Organization: University of Mount Olive, Inc. (NC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The University failed to verify information for some students selected for verification, leading to mismatches with supporting documentation.
  • Impacted Requirements: Verification procedures under 34 CFR Part 668 Subpart E were not fully followed, risking inaccurate calculations of students' expected family contributions.
  • Recommended Follow-Up: Enhance verification procedures and ensure cross-checking by Financial Aid Administrators to improve accuracy and compliance.

Finding Text

Federal Program Information: Student Financial Assistance Cluster (Various ALN?s) Criteria or Specific Requirement: N. Special Tests and Provisions ? Verification: For students selected for verification by the central processor, the University must obtain acceptable documentation to verify the information required, match information on the documentation to the student aid application, and, if necessary, submit data corrections to the central processor and recalculate awards (34 CFR Part 668 Subpart E). Condition: For certain students selected for verification, the information required to be verified either did not match the underlying supporting documentation (including certain tax information) or was not verified. Cause: Administrative oversight. Effect or Potential Effect: Inaccurate calculation of students? expected family contributions. Questioned Costs: None. Context: For 2 of 25 students tested, the University did not complete appropriate verification procedures. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the University enhance its procedures over verification to ensure that FAFSA information is appropriately verified. Views of Responsible Officials: The University has in place documentation on completing the verification process and updating any necessary changes to a student?s FAFSA record. During a new employee?s training period, the identified errors were not properly updated by the new employee. If the updates had been made, there would not have been a change to the student?s Expected Family Contribution. The University has implemented a policy to have all verifications cross-checked by other Financial Aid Administrators to ensure the accuracy of the verifications.

Corrective Action Plan

Name of Responsible Individual: Brian K. Blackburn, Director of Financial Aid Corrective Action: The University has in place documentation on completing the verification process and updating any necessary changes to a student's FAFSA record. During a new employee's training period, the identified errors were not properly updated by the new employee. If the updates had been made, there would not have been a change to the student's Expected Family Contribution. The University has implemented a policy to have all verifications cross-checked by other Financial Aid Administrators to ensure the accuracy of the verifications. Anticipated Completion Date: March 2, 2023

Categories

Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $14.27M
84.063 Federal Pell Grant Program $4.46M
84.425 Education Stabilization Fund $991,895
84.031 Higher Education_institutional Aid $513,011
84.007 Federal Supplemental Educational Opportunity Grants $186,225
84.033 Federal Work-Study Program $87,176
45.310 Grants to States $2,264