FAC Explorer

Finding 519205 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-14
Audit: 337828
Organization: Grayson College (TX)
Auditor: Whitley Penn LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls regarding the timely reporting of student verification results.
  • Impacted Requirements: Verification results must be reported to CPS within 60 days of the initial documentation request.
  • Recommended Follow-up: Management should enhance procedures to ensure timely reporting and proper documentation retention for verification submissions.

Finding Text

Federal Agency: U.S. Department of Education Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recurring: No Compliance Requirement: Special Tests and Provisions - Verification Program Information: Student Financial Aid Cluster (ALN 84.007, 84.003, 84.063, 84.268) Criteria: Program reporting requirements state that verification results must be report to CPS no more than 60 days following the school’s first request to the student for documentation of identity. Condition: Out of 40 students sampled from the school’s verification listing, 4 out of 40 students had verification results reported after 60 days. 9 out of 40 lacked documentation of verification submission for students with no response from applicant. Cause: Management does not have sufficient procedures for monitoring reporting deadlines related to verification reporting. Questioned Cost: None. Recommendations: Management should update their verification reporting process to ensure that verification results are reported in a timely manner and documentation of verification submission is retained. View of Responsible Officials: The College’s management will address the matter identified as described in the corrective action plan

Corrective Action Plan

Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Compliance Requirement: Special Tests and Provisions - Verification Corrective Action Plan: The Office of Financial Aid (OFA) has begun to monitor students that are selected for V4 and V5 verification by the U.S. Department of Education. Once available on FSA Partner Portal, the OFA reports any students that have or have not submitted necessary paperwork to finalize verification. After initial reporting, the OFA continues to monitor and report new V4 & V5 students within the 60-day timeframe requirement. Once students fulfill the verification request, the OFA updates the Verification of Identity portal as applicable. As of December 2, 2024, the Verification of Identity portal is not available for either 2024-25 or 2025-26 reporting for any Institution of Higher Education. At this time, it is unknown when the portal for reporting will be available. Name of Contact Persons: Carolyn Kasdorf - Vice President of Business Services. Stephanie Martin - Director of Financial Aid and Veteran Services Projected Completion Date: 2025

Categories

Special Tests & Provisions Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519206 2024-001
    Significant Deficiency
  • 519207 2024-001
    Significant Deficiency
  • 519208 2024-001
    Significant Deficiency
  • 519209 2024-002
    Significant Deficiency
  • 519210 2024-002
    Significant Deficiency
  • 519211 2024-002
    Significant Deficiency
  • 519212 2024-002
    Significant Deficiency
  • 1095647 2024-001
    Significant Deficiency
  • 1095648 2024-001
    Significant Deficiency
  • 1095649 2024-001
    Significant Deficiency
  • 1095650 2024-001
    Significant Deficiency
  • 1095651 2024-002
    Significant Deficiency
  • 1095652 2024-002
    Significant Deficiency
  • 1095653 2024-002
    Significant Deficiency
  • 1095654 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $6.82M
84.268 Federal Direct Student Loans $2.25M
84.002 Adult Education - Basic Grants to States $1.29M
84.048 Career and Technical Education -- Basic Grants to States $570,388
84.042 Trio_student Support Services $241,545
84.033 Federal Work-Study Program $136,033
84.116 Fund for the Improvement of Postsecondary Education $132,824
21.027 Coronavirus State and Local Fiscal Recovery Funds $118,638
84.007 Federal Supplemental Educational Opportunity Grants $94,920
59.037 Small Business Development Centers $76,166
93.558 Temporary Assistance for Needy Families $41,423
17.278 Wia Dislocated Worker Formula Grants $22,775
12.000 Dod-Beacons Grant $2,802
47.076 Education and Human Resources $-45,458