Finding 504653 (2024-003)

-
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-11-04
Audit: 327230
Organization: Life Pacific University (CA)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Discrepancies between the dates of Pell and Federal Direct Loans disbursed to student accounts and those reported to COD.
  • Impacted Requirements: Compliance with 34CFR 668.164(a) regarding accurate reporting of financial aid disbursements.
  • Recommended Follow-Up: Implement monthly reconciliations of disbursements to ensure accuracy between student accounts and COD records.

Finding Text

Common Origination and Disbursement (COD) Reporting DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: For the Spring 2024 term, the dates that Pell and Federal Direct Loans (FDL) awards were posted to student accounts did not always agree to disbursement records reported to Common Origination and Disbursement (COD). Criteria: 34CFR 668.164(a) Questioned Costs: $0 Context: Out of 60 students tested, all students tested that had aid disbursed in the Spring 2024 term had COD loan and Pell disbursement date errors ranging from 4 to 21 days. There were no errors in the amounts reported. Cause: Due to unexpected turnover in the financial aid office, reconciliations of Life Pacific University records to COD were not being completed regularly. This led to errors between the two systems not being identified in a timely manner. Effect: Inaccurate FDL reporting can impact a student's interest accumulating period based on the dates of the loan disbursement dates. Inaccurate Pell reporting could allow a student to exceed their lifetime limit. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that Life Pacific University implement procedures to reconcile monthly FDL and Pell disbursements to student accounts with disbursements reported to COD. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Common Origination and Disbursement (COD) Reporting) Planned Corrective Action: The employee in place handling student accounts was trained on COD and Disbursement, she did well in the fall. When it was discovered that she was not continuing with the processes, she disclosed she was struggling with physical and emotional issues. This caused her to forget some of her training and also, she did not notify anyone she needed assistance. When the retired Director of Student Accounts was brought in, she uncovered the fact that funds were not being monitored monthly and funds not being posted to student accounts in a timely manner. This employee was let go from this position at LPU. Consultants, former Director of Student Accounts and new Associate VP have stepped in and worked together to be sure funds were reconciled. LPU has always had a monthly reconciliation plan, and the former Director of Student Accounts is working with the Associate VP to ensure the monthly reconciliation and posting of aid to students' accounts are being processed when funds are received. Person Responsible for Corrective Action Plan: Amber Burnett, Associate Vice President of Enrollment Services Anticipated Date of Completion: 6/30/2024

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Reporting

Other Findings in this Audit

  • 504647 2024-001
    Material Weakness Repeat
  • 504648 2024-001
    Material Weakness Repeat
  • 504649 2024-001
    Material Weakness Repeat
  • 504650 2024-001
    Material Weakness Repeat
  • 504651 2024-002
    Significant Deficiency
  • 504652 2024-002
    Significant Deficiency
  • 504654 2024-003
    -
  • 1081089 2024-001
    Material Weakness Repeat
  • 1081090 2024-001
    Material Weakness Repeat
  • 1081091 2024-001
    Material Weakness Repeat
  • 1081092 2024-001
    Material Weakness Repeat
  • 1081093 2024-002
    Significant Deficiency
  • 1081094 2024-002
    Significant Deficiency
  • 1081095 2024-003
    -
  • 1081096 2024-003
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.48M
84.063 Federal Pell Grant Program $1.21M
84.031 Higher Education Institutional Aid $391,436
84.033 Federal Work-Study Program $31,635
84.007 Federal Supplemental Educational Opportunity Grants $30,871