FAC Explorer

Finding 519059 (2024-005)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-01-13
Audit: 337565
Organization: Montreat College (NC)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: Five out of 40 student files lacked documentation for timely exit counseling after withdrawal, indicating a compliance gap.
  • Impacted Requirements: This finding violates 34 CFR section 685.304, which mandates exit counseling for Direct Loan borrowers within 30 days of withdrawal.
  • Recommended Follow-Up: The College should implement a monitoring system to ensure all loan-receiving students receive exit counseling on time.

Finding Text

2024-005 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grant (b) Federal Work Study Grant (c) Federal Perkins Loan Program (d) Federal Pell Grant Program (e) Federal Direct Loan Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 - Year Ended June 30, 2024 Criteria: According to 34 CFR section 685.304, an educational institution must ensure that exit counseling is conducted with each Direct Loan student borrower 30 days after the student withdraws from the institution or falls below half-time status. Condition: During our student file testing, we noted five students out of 40 (12.5%) did not have documentation in their file that exit counseling was sent thirty days after the student withdrew. We consider the missing exit counseling to be a significant deficiency with the Eligibility Compliance Requirement. Statistical sampling was not performed in the selection of the sample. Questioned Costs: $0 Cause and Effect: The College did not send out exit counseling when the student withdrew timely and the College’s controls did not detect the missing exit counseling for the students. Recommendation: We recommend the College closely monitor all students who are receiving loans to make sure they are sent exit counseling timely. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

2024-005 - Student Financial Aid Cluster- (a) Federal Supplemental Educational Opportunity Grant (b) Federal Work Study Grant (c) Federal Perkins Loan Program (d) Federal Pell Grant Program (e) Federal Direct Loan Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 - Year Ended June 30, 2024 Condition Found During our student file testing, we noted five students out of 40 (12.5%) did not have documentation in their file that exit counseling was sent thirty days after the student withdrew. We consider the missing exit counseling to be a significant deficiency with the Eligibility Compliance Requirement. Corrective Action Plan Student Financial Services will develop a report and process that looks at students with a withdrawal or conferral date in Jenzabar or who have dropped below half time, who have taken Direct Loans and ensure that exit counseling materials are sent. Responsible Person for Corrective Action Plan Kandi Molder, Registrar and Executive Director of Student Services Deb Beck, Managing Director of Student Financial Services Implementation Date of Corrective Action Plan March 31, 2025

Categories

Student Financial Aid Eligibility Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 519057 2024-003
    -
  • 519058 2024-004
    Significant Deficiency Repeat
  • 519060 2024-006
    - Repeat
  • 519061 2024-007
    Significant Deficiency Repeat
  • 519062 2024-007
    Significant Deficiency Repeat
  • 519063 2024-008
    Significant Deficiency Repeat
  • 519064 2024-008
    Significant Deficiency Repeat
  • 519065 2024-008
    Significant Deficiency Repeat
  • 519066 2024-008
    Significant Deficiency Repeat
  • 519067 2024-008
    Significant Deficiency Repeat
  • 1095499 2024-003
    -
  • 1095500 2024-004
    Significant Deficiency Repeat
  • 1095501 2024-005
    Significant Deficiency
  • 1095502 2024-006
    - Repeat
  • 1095503 2024-007
    Significant Deficiency Repeat
  • 1095504 2024-007
    Significant Deficiency Repeat
  • 1095505 2024-008
    Significant Deficiency Repeat
  • 1095506 2024-008
    Significant Deficiency Repeat
  • 1095507 2024-008
    Significant Deficiency Repeat
  • 1095508 2024-008
    Significant Deficiency Repeat
  • 1095509 2024-008
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.26M
84.063 Federal Pell Grant Program $1.78M
12.905 Cybersecurity Core Curriculum $269,018
84.007 Federal Supplemental Educational Opportunity Grants $89,001
84.033 Federal Work-Study Program $86,474
12.902 Information Security Grants $50,722
21.019 Coronavirus Relief Fund $17,234
84.038 Federal Perkins Loan - Federal Capital Contributions $13,150