Finding 524859 (2024-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-02-28
Audit: 344215
Organization: High Point University (NC)

AI Summary

  • Core Issue: The University failed to verify that students were not earning Federal Work-Study aid during class time, leading to compliance issues.
  • Impacted Requirements: Documentation and internal controls for the Federal Work-Study program were insufficient, resulting in 5 exceptions and questioned costs of $1,533.
  • Recommended Follow-Up: Strengthen internal controls and ensure consistent adherence to policies regarding student work schedules to avoid repeat findings.

Finding Text

Information on Federal Program ‒ Federal Work-Study Program (Assistance Listing Number 84.033) Criteria – Compliance Requirement N – Special Tests and Provisions – Institutions are required to verify students are not earning Federal Work-Study program financial aid during scheduled class time, and all amounts paid are appropriately earned. Condition – During our testing of the Federal Work-Study program, we noted the following:  For 3 students out of 10 sampled, from a population of 298 students who received Federal Work- Study, the University was unable to provide proper documentation to verify the student was not earning Federal Work-Study Financial Aid during scheduled class time.  For 2 students out of a population of 298 students who received Federal Work-Study, the University was unable to verify time punches, which resulted in overpayments of Federal Work-Study aid; however, the University was able to prove no refund was needed as there were offsetting hours that were subsequently claimed as allowable hours. Cause – Insufficient documentation related to internal controls in the Federal Work-Study program, resulting in 3 students appearing to work during scheduled class time without proper documentation on file, and 2 students whose time entered and paid were not able to be verified. Effect – The students and the University were not in compliance with the Federal Work-Study program guidelines. Questioned Costs – $1,533 Context – As noted in the condition, 5 total exceptions were found, which resulted in the students and the University not being in compliance with the program rules. Indication of a Repeat Finding – This is a repeat finding 2023-004 from prior year. Recommendation – We recommend the University ensure its internal controls, policies and procedures are followed on a consistent basis regarding the Federal Work-Study Program. Views of Responsible Officials – The University consistently emphasizes to both its students and student supervisors that students should not work during their scheduled class times, regardless of whether the class is cancelled or ends early. This expectation is reiterated during training sessions for supervisors and through publications distributed to them.

Corrective Action Plan

Finding 2024-002 Program: Federal Work-Study Program Assistance Listing No.: 84.033 Federal Agency: Department of Education Award Year: FY 2023 - 2024 Compliance Requirement: N – Special Tests and Provisions – Institutions are required to verify students are not earning Federal Work-Study program financial aid during scheduled class time, and that all amounts paid are appropriately earned. University’s Response: The University continues to emphasize and reinforce with its students and student supervisors that, regardless of whether jobs are funded by the Federal Work Study program or by the institution, students must not be working during scheduled class hours regardless of whether the class is cancelled or let out early. The Student Employment Program holds annual training sessions for and provides updated publications to these responsible individuals. As part of the University student employment application process, students must submit their class schedule with their application. The University expects supervisors to utilize the student class schedules provided and keep work schedules distinct. The University also expects that supervisors continue to obtain students class schedules each semester and updates students work schedules accordingly each semester to ensure students are not working during times they are in class. The University continues to use the internal audit process it instituted in February 2023. A sample of student work records from the previous semester will be compared to students’ class schedules to ensure students are not working during class hours. This review will be performed by Michael Peeler, Vice President for Financial Affairs. Any violations of the school’s student employment policies identified in this audit will be reported to Marc Sears, Vice President of Human Resources, for corrective action to be taken. Corrective Action Plan: The University’s Student Employment Office continues to send monthly emails to student employee supervisors and to the student staff, reminding them of the student employment guidelines they are expected to abide by. This communication reminds them of their responsibility to adhere to student employment guidelines and their responsibility to keep their supervisor informed of any changes they may make to their class schedule that could require their work schedule to be adjusted. Since the hours of overpayment appeared to be resulting from students failing to clock out and managers failing to catch inaccurate hours of record (working for eight or more hours in a day, working overnight, etc.), further training and instruction to pay closer attention to these discrepancies so they are corrected at the time of approving timesheets has been provided to student employee supervisors as part of the monthly email communication. Student employee supervisors will continue to be expected to hold a mandatory meeting with their student staff at or before the start of each semester.The University’s internal audit process is also being expanded to be performed quarterly, twice each semester. This process will continue to sample student work records at the midpoint and end of the fall and spring semesters, where students’ class schedules are compared to hours worked to ensure students are not working during class hours. Michael Peeler, Vice President for Financial Affairs, will perform this review. Any violations of the school’s student employment policies identified in this audit will be reported to Marc Sears, Vice President of Human Resources, for corrective action to be taken. Name of Responsible Person: Jonathan Mador, Assistant Vice President of Student Financial Services; Sandra Fantauzzi, Student Employment Program Manager; Marc Sears, Vice President of Human Resources; Brad Calloway, Senior Vice President for Business Affairs Anticipated Completion Date: March 31, 2025

Categories

Questioned Costs Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 524858 2024-001
    Significant Deficiency Repeat
  • 1101300 2024-001
    Significant Deficiency Repeat
  • 1101301 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $68.87M
84.423 Supporting Effective Educator Development Program $3.64M
84.063 Federal Pell Grant Program $3.29M
84.336 Teacher Quality Partnership Grants $2.31M
64.028 Post-9/11 Veterans Educational Assistance $2.09M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $411,449
84.033 Federal Work-Study Program $316,682
84.007 Federal Supplemental Educational Opportunity Grants $264,188
47.083 Integrative Activities $140,645
93.279 Drug Use and Addiction Research Programs $138,074
93.859 Biomedical Research and Research Training $127,917
47.075 Social, Behavioral, and Economic Sciences $75,943
47.049 Mathematical and Physical Sciences $61,137
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $56,580
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $43,575
94.013 Americorps Volunteers in Service to America 94.013 $34,421
84.408 Postsecondary Education Scholarships for Veteran's Dependents $13,947
84.425 Education Stabilization Fund $8,560
45.129 Promotion of the Humanities Federal/state Partnership $3,418
47.070 Computer and Information Science and Engineering $1,724
12.750 Uniformed Services University Medical Research Projects $1,421
84.032 Federal Family Education Loan $0