Finding 537462 (2024-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-26
Audit: 348677
Organization: Fontbonne University (MO)
Auditor: Rubinbrown LLP

AI Summary

  • Core Issue: The University reported inaccurate disbursement dates for 13 out of 40 students, affecting compliance with federal reporting requirements.
  • Impacted Requirements: Accurate reporting of disbursement dates is essential for proper interest calculations and reconciliation with the U.S. Department of Education.
  • Recommended Follow-Up: The University should correct the reported dates and implement a review process for batch uploads to ensure future accuracy.

Finding Text

Finding 2024-003 - Significant Deficiency, Compliance Federal Assistance Listing Number. 84.063, 84.268 U.S. Department Of Education Student Financial Aid Cluster – Reporting Criteria: According to the 2023-2024 COD Technical Reference and 2023-2024 FSA Handbook, the University must report accurate disbursement dates to Common Origination Disbursement (COD) for all direct loan and pell grant disbursements made to students. Condition: In our nonstatistical sample of 40 students, we noted 13 students whose disbursement dates listed in the University’s student ledger differed from the date reported as the disbursement date within COD as reported by the University. Context: For the 13 students noted there were a total of 17 disbursements of Pell grant, subsidized loan, unsubsidized loan, and PLUS loan disbursements. Of the 17 disbursement date exceptions noted, 11 of the disbursement dates reported in COD differed by 6 days or less, while 6 of the disbursement dates reported in COD differed by 20 days or more from the date of disbursement noted in the University’s student ledger. Effect: Improperly reported disbursement dates could impact the amount of interest charged to the student or impact the ability for the University or the U.S. Department of Education to properly reconcile disbursement and drawdown data. Questioned Costs: There were no questioned costs related to this finding. Cause: The University’s original disbursement date that was reported to COD was not updated with the updated disbursement date when the updated batch reporting occurred for these students after the student’s original planned disbursement date had passed. Identification Of Repeat Finding: This is not a repeat finding. Recommendation: The University should correct the disbursement dates for the students that it knows have disbursement dates reported to COD that differ from the dates in the University’s student ledger for the year ended June 30, 2024. The University should implement controls to ensure that a review is completed of the batch uploads to COD to ensure that the disbursement dates are accurately reported. Views Of Responsible Officials (Unaudited): The University concurs with the finding and has made t the required corrections to the COD disbursement dates. The University process when posting Aid has remained consistent each year, this appears to be an isolated incident where CAMS did not pick up the date listed on the disbursement screen for these students and pass that to COD. The University has implemented a control to complete the disbursements each time and then verify the date reflects correctly in COD afterwards. While this should be an automatic process, and has been in previous years, it will be something the University verifies now with each aid posting. Completion Date: August 2024 Contact Person: Megan Morton, Director of Financial Services

Corrective Action Plan

Corrective Action Plan 2024-003: The University concurs with the finding and has made the required corrections to the COD disbursement dates. The University process when posting Aid has remained consistent each year, this appears to be an isolated incident where CAMS did not pick up the date listed on the disbursement screen for these students and pass that to COD. The University has implemented a control to complete the disbursements each time and then verify the date reflects correctly in COD afterwards. While this should be an automatic process, and has been in previous years, it will be something the University verifies now with each aid posting. Completion Date: August 2024 Contact Person: Megan Morton, Director of Financial Services

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Cash Management Reporting Significant Deficiency

Other Findings in this Audit

  • 537461 2024-002
    Significant Deficiency
  • 537463 2024-002
    Significant Deficiency
  • 537464 2024-003
    Significant Deficiency
  • 1113903 2024-002
    Significant Deficiency
  • 1113904 2024-003
    Significant Deficiency
  • 1113905 2024-002
    Significant Deficiency
  • 1113906 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.94M
84.063 Federal Pell Grant Program $1.90M
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $493,388
84.038 Federal Perkins Loan Program_federal Capital Contributions $219,145
21.027 Coronavirus State and Local Fiscal Recovery Funds $121,029
84.033 Federal Work-Study Program $75,000
84.007 Federal Supplemental Educational Opportunity Grants $69,991
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $32,062