Finding 526877 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-13
Audit: 345973
Organization: Sweet Briar Institute (VA)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The Institute failed to pay Federal Work-Study students correctly based on hours worked and did not properly review timesheets.
  • Impacted Requirements: Non-compliance with federal regulations requiring monthly compensation and proper timesheet approval.
  • Recommended Follow-Up: Improve internal controls to ensure timely and accurate payments, and enforce timesheet approvals before disbursement.

Finding Text

Finding 2024-002 – N. Special Tests and Provisions – Disbursements to or on Behalf of Students Information on Federal Program(s) – Federal Work-Study Program (Federal Assistance Listing #84.033) Criteria or Specific Requirement – For students receiving Federal Work-Study (“FWS”) Program funds, federal regulations (34 CFR 675.16) require institutions to pay FWS compensation at least once a month. Before an institution makes an initial disbursement of FWS compensation to a student for an award period, the institution must notify the student of the amount of funds the student is authorized to earn, and how and when the FWS compensation will be paid. Regardless of who employs the student, the institution is responsible for ensuring that the student is paid for work performed. Condition – For certain students selected for testing, the Institute did not pay the student FWS compensation based on the correct hours worked. Additionally, certain students’ timesheets were not properly reviewed/approved. Cause – Administrative oversight in internal controls over FWS disbursements. Effect or Potential Effect – The Institute was not in compliance with FWS disbursement requirements. Questioned Costs – Below reportable threshold. Context: • For 1 of 40 pay periods selected for FWS testing, the amount of compensation disbursed to the student did not agree to the hours worked per the approved timesheet. • For 4 of 40 pay periods selected for FWS testing, the students’ timesheet was not properly reviewed/approved by a supervisor as required. Indication of Repeat Finding – No similar finding noted in the prior year. Recommendation – We recommend that the Institute enhance its procedures and its internal controls to ensure that students receiving FWS compensation are paid timely, and for the correct amounts. Additionally, we recommend that student timesheets be approved prior to the disbursement of funds. Views of Responsible Officials – The Institute agrees with the finding. Moving forward, when Student Employment payment information is entered into our Human Resource information system, the Institute will continuously check timecards to ensure that the wages match the number of hours students work. Furthermore, the Institute will stay in communication with student supervisors to ensure they are approving timecards before payroll is processed.

Corrective Action Plan

Individual/s Responsible for Corrective Action Plan: Jaraka Waite, Human Resources Corrective Action Plan: The Institute agrees with the finding. Moving forward, when Student Employment payment information is entered into our Human Resource information system, the Institute will continuously check timecards to ensure that the wages match the number of hours students work. Furthermore, the Institute will stay in communication with student supervisors to ensure they are approving timecards before payroll is processed. Anticipated Completion Date: May 31, 2025

Categories

Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 526875 2024-001
    Significant Deficiency Repeat
  • 526876 2024-001
    Significant Deficiency Repeat
  • 526878 2024-003
    Significant Deficiency
  • 526879 2024-003
    Significant Deficiency
  • 526880 2024-003
    Significant Deficiency
  • 526881 2024-003
    Significant Deficiency
  • 1103317 2024-001
    Significant Deficiency Repeat
  • 1103318 2024-001
    Significant Deficiency Repeat
  • 1103319 2024-002
    Significant Deficiency
  • 1103320 2024-003
    Significant Deficiency
  • 1103321 2024-003
    Significant Deficiency
  • 1103322 2024-003
    Significant Deficiency
  • 1103323 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.06M
84.063 Federal Pell Grant Program $804,571
84.007 Federal Supplemental Educational Opportunity Grants $41,803
84.033 Federal Work-Study Program $40,089
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $3,732
84.038 Federal Perkins Loan Program_federal Capital Contributions $0