Finding 508162 (2024-002)

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Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-11-15
Audit: 328600
Organization: The King's University (TX)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Discrepancies between Pell and FDL award dates and amounts posted to student accounts and reported to COD.
  • Impacted Requirements: Compliance with 34 CFR 668.164(a) regarding accurate disbursement reporting.
  • Recommended Follow-Up: Implement procedures to ensure disbursement data aligns with the University’s student information system.

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: The dates and amounts that Pell and FDL awards were posted to student accounts did not always agree to disbursement records reported to Common Origination and Disbursement (COD). Criteria: 34 CFR 668.164(a) Questioned Costs: $0 Context: 4 of 60 students tested had COD loan and Pell disbursement date errors ranging from 7 to 15 days, including one student who did not have the correct amount of Pell reported on COD compared to what was accurately disbursed on the student account. The students that COD allowed corrections to occur have been corrected. Cause: Reconciliations are completed by the third party administrator with the third party’s system of disbursement. Adjustments that occurred on the student account did not always get transferred to the third party system and were not identified in the reconciliation process. Effect: Inaccurate reporting of disbursements to COD can impact accrued interest for FDL as well as the monitoring of Pell lifetime limits and FDL aggregate limits for subsidized and unsubsidized loans. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend that procedures be implemented to ensure that disbursement reporting to COD be reflective of the actual disbursement dates and amounts with the University’s student information system. 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: Procedures have been implemented to ensure that disbursement reporting to COD are reflective of the actual disbursement dates and amounts in the student information system. Person Responsible for Corrective Action Plan: Donnie Purvis, Director of Financial Services Anticipated Date of Completion: Implemented

Categories

Reporting Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.22M
84.063 Federal Pell Grant Program $532,577
84.033 Federal Work-Study Program $35,110
84.007 Federal Supplemental Educational Opportunity Grants $21,293