Finding 48176 (2022-003)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-02
Audit: 51844
Organization: Summit Academy Oic (MN)

AI Summary

  • Core Issue: The Academy failed to report disbursement dates accurately to the COD system, with discrepancies found in 2 out of 40 tested disbursements.
  • Impacted Requirements: Compliance with the Department of Education's requirement for matching disbursement dates and amounts between student accounts and the COD system.
  • Recommended Follow-Up: The Academy should review and improve its procedures for reporting disbursements to ensure accuracy and timeliness in compliance with federal requirements.

Finding Text

2022 ? 003: COD Reporting Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: The Department of Education requires the Academy to report the disbursement dates and amounts to the Common Origination and Disbursement (COD) system. Condition: During our testing of 40 disbursements, we noted the disbursement date per COD did not match the date disbursed per the student account for 2 disbursements. Questioned costs: None Context: During our testing, it was noted the Academy did not properly follow the process to ensure disbursements are accurately reported to COD. Cause: The Academy did not follow the procedure to meet the requirement that the disbursement date and balance per the student?s account must match the disbursement date and balance in COD. Effect: Disbursements are not reported correctly to COD which can cause funds to be unavailable or drawn down incorrectly. Repeat finding: Yes ? 2021-008 Recommendation: We recommend the Academy evaluate its procedures and policies around reporting disbursements to COD to ensure that student information is reported accurately and timely. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2022-003 COD Reporting Recommendation: We recommend the Academy evaluate its procedures and policies around reporting disbursements to COD to ensure that student information is reported accurately and timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: FA staff will research and receive more training on how to audit dates between our internal records system (CNS) and COD, and if adjustments are needed, how to correctly apply adjustments to disbursement dates. When disbursing Pell, FA staff will check through the expected dates (disbursement dates) in our system before exporting the Pell request to COD. In the event dates need adjusting after Pell has be received, the dates will be updated in CNS (Summit?s records system) prior to applying. The dates will also be checked, and if necessary, updated on COD to ensure they match, and both systems reflect the accurate disbursement date. Note: Due to late notification of 2020-2021 Audit Findings, we were unaware of deficiencies in our process, therefore; did not begin corrective action until near the end of 2021-2022 AY. Name of the contact person responsible for corrective action: Jennifer Haavisto Planned completion date for corrective action plan: 3/15/2023

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 48175 2022-002
    Significant Deficiency Repeat
  • 48177 2022-002
    Significant Deficiency Repeat
  • 48178 2022-003
    Significant Deficiency Repeat
  • 48179 2022-002
    Significant Deficiency Repeat
  • 48180 2022-003
    Significant Deficiency Repeat
  • 48181 2022-004
    Significant Deficiency Repeat
  • 48182 2022-004
    Significant Deficiency Repeat
  • 624617 2022-002
    Significant Deficiency Repeat
  • 624618 2022-003
    Significant Deficiency Repeat
  • 624619 2022-002
    Significant Deficiency Repeat
  • 624620 2022-003
    Significant Deficiency Repeat
  • 624621 2022-002
    Significant Deficiency Repeat
  • 624622 2022-003
    Significant Deficiency Repeat
  • 624623 2022-004
    Significant Deficiency Repeat
  • 624624 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.36M
84.425 Education Stabilization Fund $1.12M
21.027 Coronavirus State and Local Fiscal Recovery Funds $128,342
84.007 Federal Supplemental Educational Opportunity Grants $36,783
84.033 Federal Work-Study Program $1,855