Finding 515636 (2024-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-18
Audit: 333425
Organization: Cisco College District (TX)

AI Summary

  • Core Issue: There are discrepancies in financial aid reporting, with 23 out of 40 student records not matching the Common Origination and Disbursement (COD) system.
  • Impacted Requirements: Institutions must report disbursement data within 15 days to ensure compliance and avoid penalties.
  • Recommended Follow-Up: Implement a review process by an independent individual to verify the accuracy of COD data against source records.

Finding Text

Criteria: In accordance with the Student Financial assistance cluster from the 2024 compliance supplement, "Institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. Institutions may do this by reporting once every 15 calendar days, bi-weekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner." Condition: We reviewed a sample of 40 students who received financial aid. Out of the 40 students tested, 23 students cost of attendance per the student records did not agree to the amounts reflected in COD originations records. Effect: Incorrect or late reporting to the Common Origination and Disbursement (COD) System can lead to serious consequences for both institutions of higher education and their students. For institutions, delays in reporting may hinder access to federal funds, disrupt cash flow, and delay financial aid disbursements to students. Persistent errors can increase administrative burdens, require extensive corrections, and may lead to heightened scrutiny, such as being placed on Heightened Cash Monitoring (HCM) by the U.S. Department of Education (ED). Compliance failures can also damage an institution's reputation among prospective students and stakeholders. For students, these issues can result in delayed receipt of financial aid, insufficient or excessive funding, and complications with loan repayment, servicing, or eligibility for loan forgiveness. Timely and accurate reporting is critical to avoid these challenges and ensure smooth operations and compliance with federal regulations. Cause: The District relied upon data exported from EDExpress to be accurately imported to COD. An error in the software caused inconsistent data to be pulled into the required fields, and the imports were not reviewed in detail. Recommendation: We recommend that COD information is reviewed by an individual independent of the reporting process to verify that the amounts reported are accurate with the source data.

Corrective Action Plan

Views of the responsible official and planned corrective actions: Cisco College has updated the import process to include a review of data by the Financial Aid Office when it is imported into the COD system.

Categories

Reporting Subrecipient Monitoring Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 515634 2024-001
    Significant Deficiency
  • 515635 2024-002
    Significant Deficiency
  • 515637 2024-001
    Significant Deficiency
  • 515638 2024-002
    Significant Deficiency
  • 515639 2024-003
    Significant Deficiency
  • 515640 2024-001
    Significant Deficiency
  • 515641 2024-002
    Significant Deficiency
  • 515642 2024-003
    Significant Deficiency
  • 515643 2024-001
    Significant Deficiency
  • 515644 2024-002
    Significant Deficiency
  • 515645 2024-003
    Significant Deficiency
  • 1092076 2024-001
    Significant Deficiency
  • 1092077 2024-002
    Significant Deficiency
  • 1092078 2024-003
    Significant Deficiency
  • 1092079 2024-001
    Significant Deficiency
  • 1092080 2024-002
    Significant Deficiency
  • 1092081 2024-003
    Significant Deficiency
  • 1092082 2024-001
    Significant Deficiency
  • 1092083 2024-002
    Significant Deficiency
  • 1092084 2024-003
    Significant Deficiency
  • 1092085 2024-001
    Significant Deficiency
  • 1092086 2024-002
    Significant Deficiency
  • 1092087 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $4.74M
84.268 Federal Direct Student Loans $1.29M
84.425 Education Stabilization Fund $369,239
84.048 Career and Technical Education -- Basic Grants to States $125,909
84.033 Federal Work-Study Program $89,646
84.007 Federal Supplemental Educational Opportunity Grants $55,046
59.077 Community Navigator Pilot Program $37,329
43.001 NASA $26,956