Finding 503531 (2023-006)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-10-23
Audit: 325635
Organization: Waldorf University (IA)

AI Summary

  • Core Issue: The University lacks proper documentation for controls over compliance with Title IV programs.
  • Impacted Requirements: This finding indicates a material weakness in internal control, violating 34 CFR 668.16 on administrative capability.
  • Recommended Follow-Up: Implement procedures to ensure documentation of compliance controls is maintained and verified.

Finding Text

Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: Various Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number: N/A Award Period: July 1, 2022 – June 30, 2023 Type of Finding: 􀁸 Material Weakness in Internal Control Over Compliance 􀁸 Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.16 requires institutions that participate in the Title IV program to demonstrate administrative capability. Condition: During our testing of the controls over compliance, we noted the University did not maintain documentation that the controls are being completed. Questioned costs: None Context: During our testing, it was noted the University does not have a process in place to ensure proper documentation is maintained to document the controls placed over Title IV programs are being completed timely. Cause: The University did not have a process in place to document controls are being performed. Effect: The University is not in compliance with Department of Education requirements over administrative capability. Repeat finding: No Auditor’s recommendation: We recommend that the University implement procedures to document and maintain the documentation to support the controls over compliance are not only properly designed but are working. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend that the Organization implement procedures to document and maintain the documentation to support the controls over compliance are not only properly designed but are working. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Waldorf has established procedures that instead of a second person simply reviewing the first person’s work, that we sign off and date at the time of review. If we cannot sign off in person, we will send an email for confirmation of the review for later documentation. We had the controls in place but lacked the proper documentation. We believe with implementing these items as our procedure will resolve this finding. Name(s) of the contact person(s) responsible for corrective action: Duane Polsdofer Planned completion date for corrective action plan: Immediately

Categories

Student Financial Aid Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 503515 2023-002
    Material Weakness
  • 503516 2023-002
    Material Weakness
  • 503517 2023-002
    Material Weakness
  • 503518 2023-002
    Material Weakness
  • 503519 2023-003
    Significant Deficiency
  • 503520 2023-003
    Significant Deficiency
  • 503521 2023-003
    Significant Deficiency
  • 503522 2023-003
    Significant Deficiency
  • 503523 2023-004
    Significant Deficiency
  • 503524 2023-004
    Significant Deficiency
  • 503525 2023-004
    Significant Deficiency
  • 503526 2023-004
    Significant Deficiency
  • 503527 2023-005
    Significant Deficiency
  • 503528 2023-005
    Significant Deficiency
  • 503529 2023-005
    Significant Deficiency
  • 503530 2023-005
    Significant Deficiency
  • 503532 2023-006
    Material Weakness
  • 503533 2023-006
    Material Weakness
  • 503534 2023-006
    Material Weakness
  • 1079957 2023-002
    Material Weakness
  • 1079958 2023-002
    Material Weakness
  • 1079959 2023-002
    Material Weakness
  • 1079960 2023-002
    Material Weakness
  • 1079961 2023-003
    Significant Deficiency
  • 1079962 2023-003
    Significant Deficiency
  • 1079963 2023-003
    Significant Deficiency
  • 1079964 2023-003
    Significant Deficiency
  • 1079965 2023-004
    Significant Deficiency
  • 1079966 2023-004
    Significant Deficiency
  • 1079967 2023-004
    Significant Deficiency
  • 1079968 2023-004
    Significant Deficiency
  • 1079969 2023-005
    Significant Deficiency
  • 1079970 2023-005
    Significant Deficiency
  • 1079971 2023-005
    Significant Deficiency
  • 1079972 2023-005
    Significant Deficiency
  • 1079973 2023-006
    Material Weakness
  • 1079974 2023-006
    Material Weakness
  • 1079975 2023-006
    Material Weakness
  • 1079976 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.71M
84.063 Federal Pell Grant Program $2.29M
84.007 Federal Supplemental Educational Opportunity Grants $79,196
84.033 Federal Work-Study Program $16,128