Finding 538770 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-28
Audit: 349478
Organization: Lake Michigan College (MI)

AI Summary

  • Core Issue: The college failed to provide a URL for its Tier One third-party servicer contracts to the Department of Education.
  • Impacted Requirements: This violates disclosure requirements under 34 CFR 668.164, which mandates public access to contract information.
  • Recommended Follow-Up: Implement controls to ensure timely updates of contract URLs and cost information in the Cash Management Contracts Database.

Finding Text

Assistance Listing, Federal Agency, and Program Name Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268), Federal Work Study Program (ALN 84.033), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year Various Pass through Entity None Finding Type Significant deficiency Repeat Finding No Criteria If an instutiton enters into a Tier one arrangement with a third party servicer as defined in CFR 668.164(e)(1), the institution must provide to the Secretary an up to date URL for the contract and contract data as described in paragraph (e)(2)(vii) of this section for publication in a centralized database accessible to the public. Condition Colleges are required to disclose the arrangement on their website as well as other disclosure requirements outlined in 34 CFR 668.164. The school did not provide a URL for the contracts or cost information of its Tier One provider to the Department of Education for publication in the Cash Management Contracts Database. Questioned Costs None Identification of How Questioned Costs Were Computed None Context The College did not provide a URL for the contracts or cost information of its Tier One provider to the Department of Education for publication in the Cash Management Contracts Database. Cause and Effect A control was lacking to ensure the URL for the contract of its Tier One Provider was published in the Cash Management Contracts Database. Recommendation We recommend a control be implemented to ensure new contracts or cost information are published in the Cash Management Contracts Database. Views of Responsible Officials and Planned Corrective Actions Annually update the college website with contract and/or cost information regarding the third-party provider. Provide contract information URL to ED for publication in the Cash Management Contracts Database

Categories

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

Other Findings in this Audit

  • 538768 2024-001
    Significant Deficiency
  • 538769 2024-002
    Significant Deficiency
  • 538771 2024-002
    Significant Deficiency
  • 538772 2024-001
    Significant Deficiency
  • 538773 2024-001
    Significant Deficiency
  • 538774 2024-002
    Significant Deficiency
  • 538775 2024-001
    Significant Deficiency
  • 538776 2024-002
    Significant Deficiency
  • 538777 2024-001
    Significant Deficiency
  • 538778 2024-002
    Significant Deficiency
  • 538779 2024-001
    Significant Deficiency
  • 538780 2024-002
    Significant Deficiency
  • 1115210 2024-001
    Significant Deficiency
  • 1115211 2024-002
    Significant Deficiency
  • 1115212 2024-001
    Significant Deficiency
  • 1115213 2024-002
    Significant Deficiency
  • 1115214 2024-001
    Significant Deficiency
  • 1115215 2024-001
    Significant Deficiency
  • 1115216 2024-002
    Significant Deficiency
  • 1115217 2024-001
    Significant Deficiency
  • 1115218 2024-002
    Significant Deficiency
  • 1115219 2024-001
    Significant Deficiency
  • 1115220 2024-002
    Significant Deficiency
  • 1115221 2024-001
    Significant Deficiency
  • 1115222 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $3.41M
84.268 Federal Direct Student Loans $1.57M
84.066 Trio Educational Opportunity Centers $360,322
84.042 Trio Student Support Services $299,235
84.047 Trio Upward Bound $245,110
84.007 Federal Supplemental Educational Opportunity Grants $110,014
84.116 Fund for the Improvement of Postsecondary Education $95,651
21.027 Coronavirus State and Local Fiscal Recovery Funds $74,855
84.033 Federal Work-Study Program $65,068
17.258 Wioa Adult Program $36,744
17.207 Employment Service/wagner-Peyser Funded Activities $22,632
93.558 Temporary Assistance for Needy Families $12,550
17.278 Wioa Dislocated Worker Formula Grants $12,164
17.245 Trade Adjustment Assistance $3,299
84.048 Career and Technical Education -- Basic Grants to States $911