FAC Explorer

Finding 519451 (2024-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-16
Audit: 338400
Organization: Moberly Area Community College (MO)
Auditor: Cliftonlarsonallen (cla) LLP

AI Summary

  • Core Issue: The College failed to return Title IV funds within the required 45 days after determining a student withdrew.
  • Impacted Requirements: This finding violates 34 CFR 668.22(j)(1) and reflects a significant deficiency in internal controls as per 2 CFR 200.303.
  • Recommended Follow-Up: The College should enhance its procedures for processing Title IV refunds to ensure compliance and timely returns.

Finding Text

2024 – 001: Return of Title IV Funds Federal Agency: US Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.063, 84.268 Federal Award Identification Number and Year: Various Award Period: July 1, 2023, to June 30, 2024 Type of Finding: • Compliance, Other Matter • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.22(j)(1), states that 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 Uniform Guidance 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: During testing of Return of Title IV funds, the College did not return Title IV funds within 45 days of the College’s determination date Context: During our testing of 40 student's Return of Title IV (R2T4) calculations, we noted 3 with refunds that were not returned within the 45-day requirement. Questioned costs: None Cause: The College has not implemented precise controls to ensure timely return of funds related to withdrawals Effect: The College was not in compliance with the requirements to properly return refunds within the 45 day requirement. Repeat finding: Yes; prior year finding number was 2023-002. Recommendation: CLA recommends the College review its current procedures for Title IV funds and implement additional procedures to ensure refunds are returned timely. View of responsible official: Management agrees with the finding and has already implemented a corrective plan.

Corrective Action Plan

2024-001: Return of Federal Funds Context: During our testing of 40 student’s R2T4 calculations, we noted 3 with refunds that were not returned within the 45-day requirement. Cause: The college has not implemented precise controls to ensure timely return of funds related to withdrawals. View of the responsible official: MACC is an attendance taking institution and our regular practice requires review of attendance records two to three times per week. When the Financial Aid Office discovers students have withdrawn from classes, we review and calculate an R2T4 when required – usually within 1-5 days from the date it is discovered. This finding of a “late return” is due to a faculty member dropping a student outside of the dates required by our attendance policy. I would like to note that the R2T4 was performed timely and accurately as soon as the drop was identified. Action taken in response to finding: The issue was reported to the President, Vice Presidents, and Deans; as a result, the faculty were addressed and reminded of the importance to comply with the college’s attendance policy. Name(s) of the contact person(s) responsible for corrective action: Amy Hager Planned completion date for corrective action plan: Our Registrar, Deans, and Vice President for Instruction will provide reminders of our policy with our faculty each semester. In the event that a faculty member does not comply with the attendance policy, their Dean will take disciplinary action.

Categories

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

Other Findings in this Audit

  • 519452 2024-001
    Significant Deficiency Repeat
  • 519453 2024-002
    Significant Deficiency
  • 519454 2024-002
    Significant Deficiency
  • 519455 2024-002
    Significant Deficiency
  • 519456 2024-002
    Significant Deficiency
  • 519457 2024-003
    Material Weakness Repeat
  • 519458 2024-003
    Material Weakness Repeat
  • 519459 2024-003
    Material Weakness Repeat
  • 519460 2024-003
    Material Weakness Repeat
  • 1095893 2024-001
    Significant Deficiency Repeat
  • 1095894 2024-001
    Significant Deficiency Repeat
  • 1095895 2024-002
    Significant Deficiency
  • 1095896 2024-002
    Significant Deficiency
  • 1095897 2024-002
    Significant Deficiency
  • 1095898 2024-002
    Significant Deficiency
  • 1095899 2024-003
    Material Weakness Repeat
  • 1095900 2024-003
    Material Weakness Repeat
  • 1095901 2024-003
    Material Weakness Repeat
  • 1095902 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $6.50M
84.268 Federal Direct Student Loans $3.27M
84.002 Adult Education - Basic Grants to States $468,377
21.027 Coronavirus State and Local Fiscal Recovery Funds $346,316
84.048 Career and Technical Education -- Basic Grants to States $308,881
11.307 Economic Adjustment Assistance $154,186
84.033 Federal Work-Study Program $150,459
84.007 Federal Supplemental Educational Opportunity Grants $68,608
17.268 H-1b Job Training Grants $57,701
47.076 Stem Education (formerly Education and Human Resources) $6,768
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $336