Finding 518009 (2024-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-01-07
Audit: 336312
Organization: Ecclesia INC (AR)

AI Summary

  • Core Issue: Students were found working during scheduled class times, violating federal regulations.
  • Impacted Requirements: FWS regulations prohibit employment during class unless documented exemptions exist.
  • Recommended Follow-Up: Review and enhance internal controls and improve communication between FWS supervisors and the registration department to prevent future violations.

Finding Text

Finding 2024-001: FEDERAL WORK STUDY- WORKING DURING CLASS TIME Criteria: SFA Regulations state that working during scheduled class time is prohibited. Students are not permitted to work in FWS positions during scheduled class times unless certain exemptions are documented. FSA Handbook Volume 6 page 33 of 145. Condition: In ten (10) of the thirteen (13) files tested that were subject to FWS regulations, we noted that the Institution’s records indicated a conflict between employment time and scheduled class time. The records showed that the student was employed and working hours as a federal work study student while also accumulating hours earned during class. Upon further investigation, many of the conflicts were due to the instructors allowing students to leave class early after completing assignments and presentations or cancelling class altogether. The students associated with this finding are B1, A1, A6, A7, A9, A10, A11, A13, A14, and A15. The instances of noncompliance were a result of a significant deficiency in the internal controls related to scheduling work study students. Cause: The cause was an oversight by staff. Effect: As a result, the Institution did not follow FWS conditions and limitations. Questioned Costs: $0 Prior to the issuance of this audit, $117.88 was refunded to FWS for the 22/23 award year and the Institution issued a corresponding institutional scholarship to each student to make them whole. Recommendation: Due to the error rate of FWS instances of noncompliance, the Institution should review and update its internal controls related to FWS to ensure that students are not working during scheduled class time and enhance communication between Federal Work Study supervisors and registration department to ensure instances of noncompliance do not recur. Views of Responsible Officials: We concur with this finding and have strengthened our controls to prevent future occurrences of non-compliance. Refer to the corrective action plan attached for more details.

Corrective Action Plan

Finding2024-001: FEDERAL WORK STUDY-WORKING DURING CLASS TIME Comments on Finding and Recommendation(s): We concur with this finding. Due to the error rate of FWS instances of noncompliance, the Institution should review and update its internal controls related to FWS to ensure that students are not working during scheduled class time and enhance communication between Federal Work Study supervisors and registration department to ensure instances of noncompliance do not recur. Action Taken or Planned: 1} The school IT department is setting up the WorkEasy clock in/clock out system for students to lock students out of being able to clock in during scheduled class times. 2} Supervisors will examine each time card to verify no student has worked during scheduled class hours unless as defined in Volume 6 Chapter 2: Working During Scheduled Class Time Prohibited - "Exceptions are permitted if an individual class is cancelled, if the instructor has excused the student from attending for a particular day, and if the student is receiving credit for employment in an internship, externship, or community work-study experience. Any such exemptions must be documented." Documentation will be provided before the work is approved to be classified and paid as FWS wages earned. 3} Supervisors will be trained and required to sign a policy at the beginning of each award year or upon hire that states students are not permitted to work during scheduled class hours unless they meet one of the documented exceptions in Volume 6 Chapter 2. By signing this policy, supervisors agree that they may be subject to disciplinary action if they fail to abide this policy.

Categories

Internal Control / Segregation of Duties Student Financial Aid Significant Deficiency

Other Findings in this Audit

  • 1094451 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $528,933
84.063 Federal Pell Grant Program $415,661
84.033 Federal Work-Study Program $319,049
84.007 Federal Supplemental Educational Opportunity Grants $5,000