Finding 519060 (2024-006)

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

AI Summary

  • Core Issue: The College failed to report actual loan disbursement dates for 2 out of 40 students, leading to noncompliance with federal regulations.
  • Impacted Requirements: This finding violates 34 CFR 668.164 regarding the timely reporting of Title IV funds, and it is a repeat issue from the previous year.
  • Recommended Follow-Up: The College should establish procedures to ensure accurate reporting of disbursement dates to the NSLDS.

Finding Text

2024-006 – 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: 34 CFR 668.164 (a)(1) states “Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student’s ledger account or pays the student or parent directly with- (i) Funds received form the Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds; Condition: The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 2 of the 40 students in the sample (5%). We consider this condition to be an instance of noncompliance in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2023-005. Statistical sampling was not used in making sample selections. Questioned Costs: N/A Cause and Effect: The College posted the batches incorrectly resulting in a variance in the date of the disbursement per the student account and the date per NSLDS. Recommendation: We recommend the College implement procedures in order to report accurate disbursements dates for Direct Loans to NSLDS. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

2024-006 - 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 The College did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 2 of the 40 students in the sample (5%). We consider this condition to be an instance of noncompliance in internal control over compliance relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2023-005. Corrective Action Plan Student Financial Services will work with PowerFaids to determine how records are returned to COD for a disbursement date update and ensure reporting is compliant. 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 January 31. 2025

Categories

Student Financial Aid Eligibility Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519057 2024-003
    -
  • 519058 2024-004
    Significant Deficiency Repeat
  • 519059 2024-005
    Significant Deficiency
  • 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