Finding 564318 (2024-004)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-06-10
Audit: 358473
Organization: Adventhealth University (FL)
Auditor: Brown Edwards

AI Summary

  • Core Issue: Two students missed eligible Pell awards, and one received an incorrect amount due to ineffective controls.
  • Impacted Requirements: Compliance with Title IV funding disbursement regulations (34 CFR 668.164 (b)(1)).
  • Recommended Follow-Up: Implement new procedures for accurate disbursement and monitor progress with added staffing and automation efforts by summer 2025.

Finding Text

2024-004 – Disbursing Funds (Significant Deficiency) Department of Education, SFA Cluster, Special Tests and Provisions Criteria: Except for paying a student under the Federal Work Study program or unless 34 CFR 685.303(d)(4)(i) applies, an institution must disburse during the current payment period the amount of Title IV, HEA program funds that a student enrolled at the institution is eligible to receive for that payment period. (34 CFR 668.164 (b)(1). Condition: From a population of 679 students that received the Pell grant, we tested 24 students and noted that two students did not receive the Pell awards for which they were eligible, and one student received an incorrect Pell award. Cause: Controls to ensure accurate disbursements to students are not functioning properly. Effect: Two students did not receive Pell awards they were eligible for during the payment period and one student received more Pell funds than they were entitled to. Recommendation: We recommend that procedures are put in place to ensure timely and accurate payment of Title VI awards. Action Taken: Shortages in staffing did not allow for double checking student enrollment post census. To correct this situation, we have added an additional counselor. We are working with a consultant to automate manual processes to free up more counselor time. Responsible Party and contact information: Daisy Tabachow, Director of Financial Aid. Expected Date of Correction: Beginning with the summer 2025 trimester and ending at the end of the fiscal year.

Corrective Action Plan

2024-004 – Disbursing Funds (Significant Deficiency) Department of Education, SFA Cluster, Special Tests and Provisions Criteria: Except for paying a student under the Federal Work Study program or unless 34 CFR 685.303(d)(4)(i) applies, an institution must disburse during the current payment period the amount of Title IV, HEA program funds that a student enrolled at the institution is eligible to receive for that payment period. (34 CFR 668.164 (b)(1). Condition: From a population of 679 students that received the Pell grant, we tested 24 students and noted that two students did not receive the Pell awards for which they were eligible, and one student received an incorrect Pell award. Cause: Controls to ensure accurate disbursements to students are not functioning properly. Effect: Two students did not receive Pell awards they were eligible for during the payment period and one student received more Pell funds than they were entitled to. Recommendation: We recommend that procedures are put in place to ensure timely and accurate payment of Title VI awards. Action Taken: Shortages in staffing did not allow for double checking student enrollment post census. To correct this situation, we have added an additional counselor. We are working with a consultant to automate manual processes to free up more counselor time. Responsible Party and contact information: Daisy Tabachow, Director of Financial Aid. Expected Date of Correction: Beginning with the summer 2025 trimester and ending at the end of the fiscal year.

Categories

Student Financial Aid Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 564315 2024-002
    Significant Deficiency
  • 564316 2024-003
    Significant Deficiency
  • 564317 2024-001
    Significant Deficiency
  • 1140757 2024-002
    Significant Deficiency
  • 1140758 2024-003
    Significant Deficiency
  • 1140759 2024-001
    Significant Deficiency
  • 1140760 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $21.40M
84.063 Federal Pell Grant Program $2.16M
84.007 Federal Supplemental Educational Opportunity Grants $84,225