Finding 529877 (2023-004)

Significant Deficiency
Requirement
C
Questioned Costs
$1
Year
2023
Accepted
2025-03-25
Audit: 347913
Organization: Manor College (PA)

AI Summary

  • Core Issue: The College drew down $71,186 in federal funds but only disbursed $28,724 to students, leading to questioned costs of $42,462.
  • Impacted Requirements: The College failed to report unspent funds as deferred revenue, violating cash management compliance standards.
  • Recommended Follow-Up: Implement procedures to maintain compliance during employee turnover in financial administration.

Finding Text

Federal Program: Student Financial Aid Cluster – Significant Deficiency Federal Agency: Department of Education ALN Number: 84.007 Condition: The College drew down the full amount of funds authorized ($71,186), however its records report student disbursements of $28,724. Additionally, the unspent drawdowns were not reported as deferred revenue as of June 30, 2023. Questioned Costs: $42,462 Cause: Turnover in employee personnel administering the financial drawdowns. Effect: The College did not operate in accordance with the cash management compliance requirement. Recommendation: The College should develop procedures to ensure that compliance requirements can continue to be met during periods of key employee turnover. Views of Responsible Officials: Management agrees with this finding.

Corrective Action Plan

The enhanced reconciliation process noted above for the Correction Action for Finding 2023-003 will determine the amount of financial aid awarded during the month. Based on the amount awarded, the College will then draw down the amount awarded. Manor believes the monthly reconcilation and drawdown process being implemented by Manor personnel will minimize the risk that student financial aid funds are overdrawn.

Categories

Questioned Costs Cash Management Significant Deficiency

Other Findings in this Audit

  • 529876 2023-003
    Significant Deficiency
  • 529878 2023-003
    Significant Deficiency
  • 529879 2023-003
    Significant Deficiency
  • 1106318 2023-003
    Significant Deficiency
  • 1106319 2023-004
    Significant Deficiency
  • 1106320 2023-003
    Significant Deficiency
  • 1106321 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.31M
84.063 Federal Pell Grant Program $1.38M
84.007 Federal Supplemental Educational Opportunity Grants $71,186
64.U01 Post 9/11 Veterans Educational Assistance $36,808