Finding 537474 (2024-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-26

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance with federal student aid reporting requirements.
  • Impacted Requirements: Compliance with NSLDS reporting and timely return of Title IV funds is not being met, affecting numerous student records.
  • Recommended Follow-Up: Implement corrective actions as outlined in findings 2024-001 and 2024-002 to strengthen oversight and compliance.

Finding Text

Information on the Federal Program: Student Financial Assistance Cluster; SEOG (ALN 84.007),PELL (ALN 84.063), and Direct Loans (ALN 84.268); United States Department of Education; Award Year 2023-24; Compliance requirement – Special Tests and Provisions; Type of Finding: Material Weakness in Internal Control over Compliance. Criteria: Institutions should have proper internal controls in place to ensure compliance with the NSLDS reporting requirements of 34 CFR section 690.83(b)(2) and 34 CFR section 685.309 and with the timely return of Title IV funds under 34 CFR 668.21, 34 CFR 668.61, and 34 CFR 668.22(j). Condition: Lack of appropriate internal controls over compliance allowed for the findings noted in 2024-001 and 2024-002 above. Context: These errors affected twelve NSLDS reports and all students that withdrew or graduated during the year, as well as twenty-six students that either didn’t enroll, withdrew, or were over-awarded aid. Cause: Inadequate oversight to ensure compliance with these SFA requirements, due to inadequate staffing and continued difficulties with the Ellucian software system. Effect or Possible Effect: Students could be allowed to not begin loan repayment when required. University could retain funds improperly. Other errors could occur. Recommendation: Follow recommendations noted above in 2024-001 and 2024-002. Responsible Official’s Response and Corrective Action Planned: See corrective action plan.

Corrective Action Plan

Corrective Action: See above corrective action plans for 2024-001 and 2024-002. Contact Persons: Duane Valencia, Assistant Financial Vice President – Student Finance Jason Kowarsch, Registrar

Categories

Student Financial Aid Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.96M
84.063 Federal Pell Grant Program $1.90M
84.031 Higher Education_institutional Aid $798,975
84.031 Higher Education Institutional Aid $788,170
84.033 Federal Work-Study Program $146,679
84.007 Federal Supplemental Educational Opportunity Grants $68,944
15.364 Competitive State Wildlife Grant $6,661