Finding 511944 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-11-23
Audit: 329672
Organization: Summit Academy Oic (MN)

AI Summary

  • Core Issue: The Academy failed to notify the Department of Education about changes in key positions within the required 10-day timeframe.
  • Impacted Requirements: This finding highlights a significant deficiency in internal controls over compliance with federal regulations (34 CFR 668.25(e)).
  • Recommended Follow-Up: The Academy should improve its procedures for timely ECAR updates to ensure compliance and accurate reporting.

Finding Text

Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster – Various Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Pass-Through Agency: N/A Pass-Through Number: N/A 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 Institution. Condition: During our testing, we noted the Chief Operating Officer and Financial Aid Manager was not reported timely to the Department of Education. Questioned costs: None Context: During our testing, we noted the Chief Operating Officer and Financial Aid Manager had a change in position and it was not updated within 10 days. Cause: There was not a formal process in place to ensure ECAR updates were made timely to ensure the Academy is in compliance with the regulations. Effect: The Academy 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 Academy review its reporting procedures surrounding updating the ECAR to ensure reporting is accurate and completed. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy review its reporting procedures surrounding updating the ECAR to ensure reporting is accurate and completed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Summit has created a new process that includes duplicated training and support with the Financial Aid Manager and the Chief Financial Officer for ongoing monitoring and maintenance of the organization’s ECAR. The Financial Aid Manager and the CFO have a list of the listed Officers on the ECAR. In the event of any changes in staffing, including the listed officer and Financial Aid positions, those changes will be reported up through the ECAR by the Financial Aid Manager or, in the event that the Financial Aid Manager is part of the change, the reporting will be handled by the CFO. Name(s) of the contact person(s) responsible for corrective action: Marc Carrier, CFO Planned completion date for corrective action plan: Fall 2024

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 511945 2024-001
    Significant Deficiency
  • 511946 2024-001
    Significant Deficiency
  • 511947 2024-002
    Significant Deficiency
  • 511948 2024-002
    Significant Deficiency
  • 511949 2024-002
    Significant Deficiency
  • 511950 2024-003
    Significant Deficiency
  • 511951 2024-003
    Significant Deficiency
  • 511952 2024-003
    Significant Deficiency
  • 511953 2024-004
    Significant Deficiency Repeat
  • 511954 2024-004
    Significant Deficiency Repeat
  • 511955 2024-004
    Significant Deficiency Repeat
  • 1088386 2024-001
    Significant Deficiency
  • 1088387 2024-001
    Significant Deficiency
  • 1088388 2024-001
    Significant Deficiency
  • 1088389 2024-002
    Significant Deficiency
  • 1088390 2024-002
    Significant Deficiency
  • 1088391 2024-002
    Significant Deficiency
  • 1088392 2024-003
    Significant Deficiency
  • 1088393 2024-003
    Significant Deficiency
  • 1088394 2024-003
    Significant Deficiency
  • 1088395 2024-004
    Significant Deficiency Repeat
  • 1088396 2024-004
    Significant Deficiency Repeat
  • 1088397 2024-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.61M
17.289 Community Project Funding/congressionally Directed Spending $709,503
84.007 Federal Supplemental Educational Opportunity Grants $40,900
84.033 Federal Work-Study Program $9,638