Finding 509321 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-11-20
Audit: 329119
Organization: Cornell College (IA)

AI Summary

  • Core Issue: The College failed to notify the Department of Education about a change in the Director of Financial Aid within the required 10-day period.
  • Impacted Requirements: This is a significant deficiency in internal control over compliance with federal regulations (34 CFR 668.25(e)).
  • Recommended Follow-Up: Review and improve procedures for timely and accurate reporting to the Department of Education regarding changes in official positions.

Finding Text

Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: Various Award Period: July 1, 2023 through June 30, 2024 Type of Finding: * Significant Deficiency in Internal Control Over Compliance * Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.25(e) states that an institution must notify the Department of Education by way of the ECAR within 10 days of a change in position of an official at the College. Condition: During our testing, we noted that the change in Director of Financial Aid was not reported timely to the Department of Education. Questioned costs: None Context: During our testing, we noted that the change in Director of Financial Aid was not reported timely to the Department of Education. Cause: Based on discussion with management, they attempted to make the update. However, there were issues with the Department of Education’s website. Effect: The College is not in compliance with Department of Education requirements that state the ECAR must have accurately reported information. Repeat Finding: No Recommendation: We recommend the College review its reporting procedures surrounding updating the ECAR to ensure reporting is accurate and completed timely. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend the College review its reporting procedures surrounding updating the ECAR to ensure reporting is accurate and completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A process for ensuring all updates to the ECAR are submitted within the proper time frame was in place. Unfortunately, there were delays on the side of the Department of Education that prevented access being granted to all systems within 10 days of Beth Davenport being hired as the Director of Financial Aid. Moving forward, this should not be an issue. Processes are in place to have board updates communicated immediately following board meetings as well as other changes to institutional leadership, third-party servicers, etc. Name of the contact person responsible for corrective action: Beth Davenport Planned completion date for corrective action plan: November 2024

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 509322 2024-001
    Significant Deficiency
  • 509323 2024-001
    Significant Deficiency
  • 509324 2024-001
    Significant Deficiency
  • 509325 2024-001
    Significant Deficiency
  • 509326 2024-001
    Significant Deficiency
  • 509327 2024-001
    Significant Deficiency
  • 509328 2024-001
    Significant Deficiency
  • 509329 2024-002
    Significant Deficiency
  • 509330 2024-002
    Significant Deficiency
  • 509331 2024-002
    Significant Deficiency
  • 509332 2024-002
    Significant Deficiency
  • 509333 2024-002
    Significant Deficiency
  • 509334 2024-002
    Significant Deficiency
  • 509335 2024-002
    Significant Deficiency
  • 509336 2024-002
    Significant Deficiency
  • 1085763 2024-001
    Significant Deficiency
  • 1085764 2024-001
    Significant Deficiency
  • 1085765 2024-001
    Significant Deficiency
  • 1085766 2024-001
    Significant Deficiency
  • 1085767 2024-001
    Significant Deficiency
  • 1085768 2024-001
    Significant Deficiency
  • 1085769 2024-001
    Significant Deficiency
  • 1085770 2024-001
    Significant Deficiency
  • 1085771 2024-002
    Significant Deficiency
  • 1085772 2024-002
    Significant Deficiency
  • 1085773 2024-002
    Significant Deficiency
  • 1085774 2024-002
    Significant Deficiency
  • 1085775 2024-002
    Significant Deficiency
  • 1085776 2024-002
    Significant Deficiency
  • 1085777 2024-002
    Significant Deficiency
  • 1085778 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.90M
84.268 Federal Direct Student Loans $1.70M
84.033 Federal Work-Study Program $342,616
97.044 Assistance to Firefighters Grant $269,495
21.029 Coronavirus Capital Projects Fund $171,471
84.007 Federal Supplemental Educational Opportunity Grants $170,880
84.038 Federal Perkins Loan Program $138,145
47.050 Geosciences $33,419
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $3,772