Finding 519181 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-14

AI Summary

  • Core Issue: The College incorrectly calculated Return to Title IV (R2T4) due to using wrong withdrawal dates, leading to late fund returns.
  • Impacted Requirements: Violations of 34 CFR 668.22(j)(1) and 2 CFR 200.303 regarding timely return of federal funds and maintaining internal controls.
  • Recommended Follow-Up: Review and update R2T4 policies and procedures to ensure accurate calculations and timely returns of federal funds.

Finding Text

2024-002 Special Tests and Provisions Federal agency: U.S Department of Education Federal program title: Student Financial Assistance Cluster Assistant Listing Number: 84.007/84.033/84.063/84.268 Federal Award Identification Number: P007A233410, P033A233410, P063P232032, P268K24032 Award Period: July 1, 2023 to June 30, 2024 Type of Finding:  Compliance, Other Matters  Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 34 CFR 668.22(j)(1) an institution must return the amount of title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew. Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: The College used the incorrect withdrawal date when calculating Return to Title IV (R2T4) calculation and returned funds late. Context: During our testing, we identified 3 out of 40 R2T4 calculations used an incorrect withdrawal date in their calculation. Also, 2 out of 40 of the R2T4 selections had funds that were not returned timely (after 45 days). Questioned costs: None. Cause: The College input the incorrect dates when completing R2T4 calculations. Effect: The College could return incorrect amounts based off of their calculations, which could affect student repayment amounts based off of amount earned. Repeat Finding: No. Recommendation: We recommend that the College review policies and procedures related to R2T4 calculations to ensure calculations are performed accurately and federal funds are returned timely. Views of responsible officials: Management agrees with the finding.

Corrective Action Plan

2024-002 Student Financial Assistance Cluster - Assistance Listing No. 84.007; 84.033; 84.063; 84.268 Recommendation: We recommend that the College review policies and procedures related to R2T4 calculations to ensure calculations are performed accurately and federal funds are returned timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The records identified with incorrect R2T4 calculations have been recalculated, reported to COD and funds returned. In order to best ensure policies and procedures for R2T4 calculations, additional staff have been trained to ensure calculations are checked and double checked to ensure compliance. Name(s) of the contact person(s) responsible for corrective action: Katelyn Dawson, Director of Financial Aid, Veteran Services & Student Employment Planned completion date for corrective action plan: All corrections have been submitted as of October 9, 2024. Training of additional staff in progress – to be completed by February 28, 2025.

Categories

Special Tests & Provisions Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519182 2024-002
    Significant Deficiency
  • 519183 2024-002
    Significant Deficiency
  • 519184 2024-002
    Significant Deficiency
  • 519185 2024-003
    Material Weakness
  • 519186 2024-003
    Material Weakness
  • 519187 2024-001
    Significant Deficiency
  • 1095623 2024-002
    Significant Deficiency
  • 1095624 2024-002
    Significant Deficiency
  • 1095625 2024-002
    Significant Deficiency
  • 1095626 2024-002
    Significant Deficiency
  • 1095627 2024-003
    Material Weakness
  • 1095628 2024-003
    Material Weakness
  • 1095629 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $9.80M
84.268 Federal Direct Student Loans $3.55M
11.300 Investments for Public Works and Economic Development Facilities $2.29M
84.048 Career and Technical Education -- Basic Grants to States $1.24M
93.575 Child Care and Development Block Grant $820,861
84.002 Adult Education - Basic Grants to States $459,788
94.016 Americorps Seniors Senior Companion Program (scp) 94.016 $392,931
84.042 Trio Student Support Services $323,505
20.205 Highway Planning and Construction $314,190
94.011 Americorps Seniors Foster Grandparent Program (fgp) 94.011 $307,291
84.007 Federal Supplemental Educational Opportunity Grants $302,239
21.027 Coronavirus State and Local Fiscal Recovery Funds $282,000
84.033 Federal Work-Study Program $182,066
94.006 Americorps State and National 94.006 $168,062
17.259 Wioa Youth Activities $165,073
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $84,828
14.850 Public Housing Operating Fund $76,259
84.425 Education Stabilization Fund $60,024
17.285 Registered Apprenticeship $15,183
93.052 National Family Caregiver Support, Title Iii, Part E $12,518
45.025 Promotion of the Arts Partnership Agreements $4,020
93.324 State Health Insurance Assistance Program $0