Finding 499267 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-28
Audit: 322077
Organization: Baptist Health (AR)

AI Summary

  • Core Issue: The College failed to meet requirements for using a servicer to deliver Title IV credit balances, including not providing necessary contract details and fee information.
  • Impacted Requirements: Compliance with 34 CFR 668.164(e) and (f) regarding contract transparency and due diligence reviews every two years.
  • Recommended Follow-Up: Update internal controls and ensure all required information is submitted to the Department of Education and posted on the College's website by October 31, 2024.

Finding Text

U.S. Department of Education Student Financial Assistance Cluster Assistance Listing No. 84.007 Federal Supplemental Educational Opportunity Grants; Assistance Listing No. 84.063 Federal Pell Grant Program; Assistance Listing No. 84.268 Federal Direct Student Loans Program Year 2023 Criteria: Special Tests and Provisions – Using a Servicer or Financial Institution to Deliver Title IV Cred Balances to a Card or Other Access Device (34 CFR 668.164(e) and (f). Condition: The College did not comply with certain requirements of Using a Servicer or Financial Institution to Deliver Title IV Cred Balances to a Card or Other Access Device. Questioned Costs: None. Context: The College entered into a contract with a servicer to deliver Title IV credit balances in 2018 but did not provide the contract URL to the Department of Education or include the contract on the College's website. The contract does not include a stated provision that the contract may be terminated based on student complaints nor does it discuss surcharge-free ATMs. The College did not perform a formal due diligence review of the contract fees, as required, every two years. The College did not post fee information within 60 days of the award year to its website and did not send cost information to the Department of Education. Effect: The College was not in compliance with the requirements noted above. Cause: The College’s internal controls did not ensure compliance with Department of Education requirements related to using a servicer to deliver Title IV credit balances to students. Identification as a Repeat Finding, if Applicable: N/A Recommendation: The College should update its controls to ensure compliance with Department of Education requirements for using a servicer to deliver Title IV funds. Views of Responsible Officials and Planned Corrective Actions: The College has reviewed the requirement in 34 CFR 668.164(e) and (f) and the required information will be corrected and the information will be submitted to the Department of Education and uploaded to the College's website by October 31, 2024.

Categories

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 499263 2023-001
    Significant Deficiency
  • 499264 2023-001
    Significant Deficiency
  • 499265 2023-001
    Significant Deficiency
  • 499266 2023-002
    Material Weakness
  • 499268 2023-002
    Material Weakness
  • 1075705 2023-001
    Significant Deficiency
  • 1075706 2023-001
    Significant Deficiency
  • 1075707 2023-001
    Significant Deficiency
  • 1075708 2023-002
    Material Weakness
  • 1075709 2023-002
    Material Weakness
  • 1075710 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $103.92M
93.498 Provider Relief Fund (prf) and American Rescue Plan (arpa) Rural Distribution $29.15M
84.268 Federal Direct Student Loans $2.68M
84.063 Federal Pell Grant Program $1.23M
93.889 Covid-19 National Bioterrorism Hospital Preparedness Program $1.13M
93.575 Child Care and Development Block Grant $1.08M
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $155,340
32.005 Universal Service Fund - Rural Health Care $142,406
93.301 Small Rural Hospital Improvement Grant Program $30,872
84.007 Federal Supplemental Educational Opportunity Grants $29,125