Finding 48583 (2022-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-25
Audit: 45166
Organization: Finger Lakes Community College (NY)
Auditor: Bonadio & CO LLP

AI Summary

  • Core Issue: The College lacked knowledgeable staff to manage the R2T4 process, leading to errors in student withdrawal calculations.
  • Impacted Requirements: Compliance with Title IV of the Higher Education Act, specifically in documenting withdrawal dates and calculating financial aid returns.
  • Recommended Follow-Up: Enhance training programs for staff, ensure clear communication of responsibilities, and implement ongoing cross-training on R2T4 calculations.

Finding Text

Finding 2022-002 ? 84.268, 84.063, 84.033, 84.007 Student Financial Assistance Cluster Federal Agency ? U.S. Department of Education Grant Period ? Year ended August 31, 2022 Criteria ? In accordance with Title IV of the Higher Education Act of 1965 (Title IV) the College is required to document and determine the date of a student?s withdrawal and calculate the return of their earned student financial assistance. Condition ? There was no individual knowledgeable of the R2T4 process to lead and ensure calculations were performed timely and accurately. Context ? A sample of 40 withdrawal calculations was selected from a population of 560 students throughout the fiscal year. Our sample was a statistically valid sample. Cause ? In fiscal 2021, the College?s Director of Student Financial Aid resigned, and the responsibilities of the withdrawals were transitioned from the Office of Student Accounts to Financial Aid. During the transition, the Student Accounts staff who was knowledgeable of the withdrawal process retired, leaving the remaining staff in both offices unfamiliar with the process. A new director was hired in May 2021 and tasked with restructuring the Department, training staff, and developing policies and procedures over processes, including R2T4?s. Effect ? Many improvements to the R2T4 process were noted in fiscal 2022, however, there were approximately 20 calculations in our sample that had to be redone based on a review by the Director. As a result, 22 of our sample of 40 student R2T4?s was recalculated due to incorrect withdrawal dates or incorrect aid disbursed entered into the initial calculation. All R2T4?s for fiscal 2022 were reviewed and updated. Recommendation ? We recommend the College review its current training programs and ensure individuals understand their responsibilities and how to perform assigned tasks. The College should continue training individuals as an opportunity for strengthening the process and ensuring cross-training on the R2T4 calculations. This process should include formal communication with all departments involved to ensure everyone is aware of their responsibilities. View of Responsible Officials ? We accept the findings of the Financial Aid Single Audit and we will be implementing new policies and training procedures going forward. See Corrective Action Plan.

Categories

Student Financial Aid

Other Findings in this Audit

  • 48582 2022-002
    Significant Deficiency Repeat
  • 48584 2022-002
    Significant Deficiency Repeat
  • 48585 2022-002
    Significant Deficiency Repeat
  • 48586 2022-003
    Significant Deficiency
  • 48587 2022-003
    Significant Deficiency
  • 48588 2022-003
    Significant Deficiency
  • 625024 2022-002
    Significant Deficiency Repeat
  • 625025 2022-002
    Significant Deficiency Repeat
  • 625026 2022-002
    Significant Deficiency Repeat
  • 625027 2022-002
    Significant Deficiency Repeat
  • 625028 2022-003
    Significant Deficiency
  • 625029 2022-003
    Significant Deficiency
  • 625030 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.20M
84.063 Federal Pell Grant Program $6.69M
84.048 Career and Technical Education -- Basic Grants to States $497,286
84.425 Education Stabilization Fund $242,202
84.002 Adult Education - Basic Grants to States $120,371
84.033 Federal Work-Study Program $116,503
84.007 Federal Supplemental Educational Opportunity Grants $79,407
17.258 Wia Adult Program $17,519
47.076 Education and Human Resources $3,012