FAC Explorer

Finding 563664 (2024-001)

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Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-03
Audit: 357971
Organization: California Institute of Technology (CA)
Auditor: Pricewaterhousecoopers LLP

AI Summary

  • Core Issue: The Institute failed to obtain students' voluntary consent for electronic transactions as required by the E-Sign Act.
  • Impacted Requirements: Terms and conditions for federal student assistance lacked necessary consent statements, risking the legal validity of electronic transactions.
  • Recommended Follow-Up: Implement a process to ensure students provide consent for electronic transactions before receiving federal financial aid.

Finding Text

Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.859 Biomedical Research and Research Training $10.98M
93.865 Child Health and Human Development Extramural Research $5.01M
93.279 Drug Use and Addiction Research Programs $1.60M
93.867 Vision Research $1.38M
84.268 Federal Direct Student Loans $1.35M
97.036 Covid-19 - Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.23M
84.063 Federal Pell Grant Program $1.07M
93.121 Oral Diseases and Disorders Research $1.04M
84.038 Federal Perkins Loan Program $826,139
43.003 Exploration $680,010
93.855 Allergy and Infectious Diseases Research $562,616
93.879 Medical Library Assistance $550,185
12.800 Air Force Defense Research Sciences Program $548,657
12.RD Not Available $512,713
84.007 Federal Supplemental Educational Opportunity Grants $421,725
93.394 Cancer Detection and Diagnosis Research $405,517
81.135 Advanced Research Projects Agency - Energy $353,624
15.229 Wild Horse and Burro Resource Management $337,963
12.910 Research and Technology Development $322,666
93.173 Research Related to Deafness and Communication Disorders $312,020
93.RD Not Available $286,309
93.172 Human Genome Research $273,230
97.RD Not Available $272,074
15.RD Not Available $269,075
47.RD Not Available $265,124
81.049 Office of Science Financial Assistance Program $262,808
84.033 Federal Work-Study Program $241,825
47.074 Biological Sciences $226,097
47.084 Nsf Technology, Innovation, and Partnerships $212,982
47.083 Integrative Activities $205,064
81.086 Conservation Research and Development $204,383
93.213 Research and Training in Complementary and Integrative Health $196,213
93.351 Research Infrastructure Programs $194,880
12.431 Basic Scientific Research $159,487
81.RD Not Available $151,679
93.837 Cardiovascular Diseases Research $149,161
47.070 Computer and Information Science and Engineering $144,493
93.396 Cancer Biology Research $142,716
12.351 Scientific Research - Combating Weapons of Mass Destruction $115,952
47.049 Mathematical and Physical Sciences $108,399
43.008 Office of Stem Engagement (ostem) $107,183
12.420 Military Medical Research and Development $104,858
47.078 Not Available $104,358
93.838 Lung Diseases Research $103,699
45.161 Promotion of the Humanities Research $100,931
93.310 Trans-Nih Research Support $91,811
81.112 Stewardship Science Grant Program $91,411
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $88,433
16.575 Crime Victim Assistance $84,432
47.041 Engineering $79,253
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $72,868
47.084 Not Available $69,660
93.866 Aging Research $69,459
20.109 Air Transportation Centers of Excellence $69,037
47.075 Social, Behavioral, and Economic Sciences $53,694
43.012 Space Technology $46,998
47.078 Polar Programs $40,443
47.076 Stem Education (formerly Education and Human Resources) $40,179
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $39,536
93.398 Cancer Research Manpower $37,236
16.588 Violence Against Women Formula Grants $33,704
43.001 Science $31,015
15.807 Earthquake Hazards Program Assistance $27,864
10.310 Agriculture and Food Research Initiative (afri) $25,375
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $25,000
47.050 Geosciences $21,730
43.RD Not Available $21,416
15.808 U.s. Geological Survey Research and Data Collection $19,555
93.242 Mental Health Research Grants $18,176
93.103 Food and Drug Administration Research $11,815
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $5,528
11.431 Climate and Atmospheric Research $1,440
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $1,106
93.395 Cancer Treatment Research $-4,789
12.300 Basic and Applied Scientific Research $-5,914
81.087 Renewable Energy Research and Development $-10,000
81.089 Fossil Energy Research and Development $-17,754