Finding 5661 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2023-12-20

Audit: 7583

Organization: Immaculata University (PA)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: The University failed to return Title IV refund checks that were outstanding for over 240 days, violating federal regulations.
Impacted Requirements: Compliance with 34 CFR 668.164(h)(2) regarding timely return of uncashed checks to the U.S. Department of Education.
Recommended Follow-Up: Establish a reliable process to ensure all outstanding checks are returned within the required timeframe and conduct regular checks to verify compliance.

Finding Text

Outstanding Student Refund Checks Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007, 84.063, 84.268 Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states that an institution that attempts to disburse funds by check and the check is not cashed, the institution must return the funds to the Department of Education (ED) no later than 240 days after the date it issued that check. Condition: Title IV checks outstanding for 240 days were not returned to ED as of June 30, 2023. Questioned Costs: $3,753 Context: During our testing, we noted 10 out of 10 Title IV checks older than 240 days which were not returned to the ED. Cause: Management did have a process in place to return Title IV checks that were outstanding for 240 days or more. However, the University did not ensure this process was being followed during the year and verify the funds had been properly returned. Effect: The University is not in compliance with requirements to return Title IV refund checks outstanding more than 240 days to the ED. Repeat Finding: No.Auditors’ Recommendation: We recommend the University develop a process to ensure that all Title IV outstanding checks are returned back to the ED within the required timeframe and verify on a regular basis the process has been followed. Views of Responsible Officials: There is no disagreement with the finding.

Corrective Action Plan

Department of Education Immaculata University respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 01, 2022 - June 30, 2023 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT No findings over financial statement audit. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Department of Education 2023-001 Student Financial Assistance Cluster – Federal Assistance Numbers 84.007, 84.063, 84.268 Recommendation: We recommend the University develop a process to ensure that all Title IV outstanding checks are returned back to the ED within the required timeframe and verify on a regular basis the process has been followed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University had an established monthly process for returning Title IV outstanding checks to the Department of Education. During the months of January, 2023 and May, 2023, the University did not follow this established monthly process. Beginning in August, 2023, the University began scheduling monthly meetings to ensure all Title IV outstanding checks are returned to the Department of Education within the required timeframe. Name(s) of the contact person(s) responsible for corrective action: Joanne Cristinzio Planned completion date for corrective action plan: August 15, 2023 If the Department of Education has questions regarding this plan, please call Joanne Cristinzio at 484- 323-3067.

Other Findings in this Audit

5662 2023-001

Significant Deficiency
5663 2023-001

Significant Deficiency
582103 2023-001

Significant Deficiency
582104 2023-001

Significant Deficiency
582105 2023-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.268	Federal Direct Student Loans	$15.76M
84.063	Federal Pell Grant Program	$1.61M
84.038	Federal Perkins Loan Program	$330,533
84.033	Federal Work-Study Program	$93,431
84.007	Federal Supplemental Educational Opportunity Grants	$69,803
84.027	Special Education_grants to States	$2,442