FAC Explorer

Finding 4472 (2023-002)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2023-12-15
Audit: 6949
Organization: Tarrant County College District (TX)
Auditor: Weaver and Tidwell LLP

AI Summary

  • Core Issue: The District did not submit the required contract information for Title IV credit balances to the Department of Education.
  • Impacted Requirements: This oversight violates 34 CFR 668.164, which mandates public disclosure of contracts with servicers or financial institutions.
  • Recommended Follow-Up: Assign a responsible party to ensure timely submission of required information to the Department of Education.

Finding Text

Section III. Federal Award Findings and Questioned Costs Finding 2023-002: Using a Servicer or Financial Institution to Deliver Title IV Credit Balances Type of finding: Significant Deficiency in Internal Controls over Compliance and Compliance Major Program: Student Financial Assistance Cluster Questioned Cost: $0 Criteria 34 CFR 668.164 sets forth the criteria for required disclosures regarding arrangements or contracts made with servicers or financial institutions used to make direct payments of Title IV credit balances to students through electronic fund transfer to a bank account designated by the student or parent or to issue a check payment to the student, to use an access device to access those funds. Condition The District failed to provide required information to the Department of Education an up-to-date URL for the contract with the servicer or financial institution for publication in a centralized database accessible to the public. Cause The District was unaware of the requirement to submit this information to the Department of Education. Effect The failure to provide required information to the Department of Education resulted in the exclusion of the District in the centralized database made accessible to the public. Recommendation We recommend the District identify the responsible party to oversee that the required information is sent to the Department of Education. Status See Corrective Action Plan noted as the District’s response to finding 2023-002.

Corrective Action Plan

Finding 2023-002 Using a Servicer of Financial Institution to Deliver Title IV Credit Balances Views of Responsible Officials The District agrees with the auditor’s findings and recommendations. Corrective Action Plan Under the Title IV cash management regulations, institutions are required to publicly disclose any contract that governs a Tier One or Tier Two Arrangement as well as information about the costs incurred by students who elect to use a financial account offered under one of those arrangements. The District submitted the required disclosure of its Tier One contract with BankMobile Technologies, Inc. to the Department of Education on November 29, 2023. Additional information about student refunds including the District’s contract with BankMobile Technologies, Inc. is currently available to the public at the following link. https://www.tccd.edu/services/paying-for-college/refunds/ Implementation Date Immediate Individual(s) Responsible The Director of Business Services is responsible for disclosures related to student refunds.

Categories

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 4473 2023-002
    Significant Deficiency
  • 4474 2023-002
    Significant Deficiency
  • 4475 2023-002
    Significant Deficiency
  • 580914 2023-002
    Significant Deficiency
  • 580915 2023-002
    Significant Deficiency
  • 580916 2023-002
    Significant Deficiency
  • 580917 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $55.53M
84.268 Federal Direct Student Loans $20.77M
84.048 Career and Technical Education -- Basic Grants to States $1.71M
84.007 Federal Supplemental Educational Opportunity Grants $1.37M
84.033 Federal Work-Study Program $829,666
84.047 Trio_upward Bound $742,249
84.002 Adult Education - Basic Grants to States $689,331
84.031 Higher Education_institutional Aid $664,716
84.042 Trio_student Support Services $654,863
84.335 Child Care Access Means Parents in School $343,167
21.027 Coronavirus State and Local Fiscal Recovery Funds $302,837
59.037 Small Business Development Centers $208,371
84.044 Trio_talent Search $127,708
17.278 Wia Dislocated Worker Formula Grants $89,140
84.425 Education Stabilization Fund $73,980
47.076 Education and Human Resources $50,000
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $45,683
14.218 Community Development Block Grants/entitlement Grants $16,539
93.575 Child Care and Development Block Grant $1,355
45.164 Promotion of the Humanities_public Programs $213