Finding 585756 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-22
Audit: 12796
Organization: North Central Michigan College (MI)

AI Summary

  • Core Issue: A calculation error in the Return of Title IV aid led to a student receiving less financial aid than entitled.
  • Impacted Requirements: The College lacks a formal review process for verifying Return of Title IV calculations, increasing the risk of errors.
  • Recommended Follow-Up: Implement a second-person review process for all Return of Title IV calculations to catch errors before processing.

Finding Text

Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Eligibility). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.007, 84.033, 84.063, and 84.268; Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.007, 84.033, 84.063, and 84.268; Award Numbers P007A222054, P033A222054, P063P221646, and P268K231646. Criteria. Recipients of Title IV grants/loans who have withdrawn from an institution earn a certain percentage of aid based on their percentage of the semester completed. Condition. Instead of earning additional aid due to the Return of Title IV calculation error, one of the twenty one students who were affected saw a reduction due to a transposition/rounding error that was missed in the original calculation. Cause. The College does not have a formal review process where a second individual looks over the Return of Title IV calculation to ensure errors are caught before the returns are processed.Effect. As a result of this condition, input errors for the Return of Title IV calculations can make it through the process without being discovered. It is our understanding that on July 26, 2023, the College corrected the transposition/rounding error that impacted the students Return of Title IV calculation. Recommendation. Management has already taken appropriate corrective action by updating the returns for the student impacted by the input error. However, we recommend that the College implement a review process to ensure that the R2T4 calculation is being reviewed by a second individual. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.

Categories

Student Financial Aid Eligibility Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 9302 2023-001
    Significant Deficiency
  • 9303 2023-001
    Significant Deficiency
  • 9304 2023-001
    Significant Deficiency
  • 9305 2023-001
    Significant Deficiency
  • 9306 2023-001
    Significant Deficiency
  • 9307 2023-001
    Significant Deficiency
  • 9308 2023-002
    Significant Deficiency
  • 9309 2023-002
    Significant Deficiency
  • 9310 2023-002
    Significant Deficiency
  • 9311 2023-002
    Significant Deficiency
  • 9312 2023-002
    Significant Deficiency
  • 9313 2023-002
    Significant Deficiency
  • 9314 2023-003
    Significant Deficiency
  • 9315 2023-003
    Significant Deficiency
  • 9316 2023-003
    Significant Deficiency
  • 9317 2023-003
    Significant Deficiency
  • 9318 2023-003
    Significant Deficiency
  • 9319 2023-003
    Significant Deficiency
  • 585744 2023-001
    Significant Deficiency
  • 585745 2023-001
    Significant Deficiency
  • 585746 2023-001
    Significant Deficiency
  • 585747 2023-001
    Significant Deficiency
  • 585748 2023-001
    Significant Deficiency
  • 585749 2023-001
    Significant Deficiency
  • 585750 2023-002
    Significant Deficiency
  • 585751 2023-002
    Significant Deficiency
  • 585752 2023-002
    Significant Deficiency
  • 585753 2023-002
    Significant Deficiency
  • 585754 2023-002
    Significant Deficiency
  • 585755 2023-002
    Significant Deficiency
  • 585757 2023-003
    Significant Deficiency
  • 585758 2023-003
    Significant Deficiency
  • 585759 2023-003
    Significant Deficiency
  • 585760 2023-003
    Significant Deficiency
  • 585761 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.82M
84.425 Higher Education Emergency Relief Fund - Institutions of Higher Education - Institutional $820,885
84.048 Career and Technical Education - Basic Grants to States - Local Annual $109,142
84.033 Federal Work-Study Program $55,000
45.164 Promotion of the Humanities_public Programs $53,490
84.268 Federal Direct Student Loans $49,187
84.007 Federal Supplemental Educational Opportunity Grants $35,000
84.048 Career and Technical Education - Basic Grants to States - Local Leadership $9,200