Finding 60545 (2022-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 56183
Organization: Lake Michigan College (MI)

AI Summary

  • Core Issue: The College failed to notify students and parents about direct loan disbursements as required by federal regulations.
  • Impacted Requirements: Notifications must include the disbursement date, amount, cancellation rights, and procedures, as outlined in 34 CFR Section 668.165.
  • Recommended Follow-Up: The College should establish a reliable process to ensure all notifications meet the required criteria moving forward.

Finding Text

ALN, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loan Program ALN 84.268 Federal Award Identification Number and Year Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes 2021-002 Criteria - If an institution credits a student ledger account with a direct loan, the institution must notify the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student's ledger account at the institution of: (i) The anticipated date and amount of the disbursement (ii) The student's or parent's right to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the secretary (iii) The procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement (34 CFR Section 668.165(a)(2) and (a)(3)). Condition - The College was not sending notifications meeting the required criteria during the the year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The College did not send notifications with the required information included for the entire fiscal year. Cause and Effect - The College did not have a process in place to provide students and parents with required notifications. As a result, students and parents were not provided with the required information. Recommendation - The College should implement a process to ensure notifications sent to students and parents include all required information. Views of Responsible Officials and Planned Corrective Actions - The College has updated their notifications to include the required elements beginning in the Fall 2022 semester.

Corrective Action Plan

Finding Number: 2022-001 ALN, Federal Agency, and Program Name - Student Financial Assistance Cluster-Federal Direct Student Loan Program ALN 84.268 Condition: The College was not sending notifications meeting the required criteria during the year. Planned Corrective Action: The College has updated notifications to include the required elements beginning in the Fall 2022 semester. Contact person responsible for corrective action: Nicole Hatter Anticipated Completion Date: 11/22/2022

Categories

Student Financial Aid Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 60546 2022-001
    Material Weakness Repeat
  • 60547 2022-002
    Significant Deficiency
  • 60548 2022-002
    Significant Deficiency
  • 60549 2022-002
    Significant Deficiency
  • 636987 2022-001
    Material Weakness Repeat
  • 636988 2022-001
    Material Weakness Repeat
  • 636989 2022-002
    Significant Deficiency
  • 636990 2022-002
    Significant Deficiency
  • 636991 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $3.50M
84.268 Federal Direct Student Loans $1.72M
84.031 Higher Education_institutional Aid $588,417
84.047 Trio_upward Bound $356,048
84.066 Trio_educational Opportunity Centers $342,119
84.042 Trio_student Support Services $300,794
84.425 Covid-19 - Education Stabilization Fund $272,932
84.048 Covid-19 - Career and Technical Education -- Basic Grants to States $272,810
84.007 Federal Supplemental Educational Opportunity Grants $129,770
84.033 Federal Work-Study Program $41,606
17.258 Wioa Adult Program $30,668
17.207 Employment Service/wagner-Peyser Funded Activities $25,220
17.278 Wioa Dislocated Worker Formula Grants $24,038
93.558 Temporary Assistance for Needy Families $10,740
84.048 Career and Technical Education -- Basic Grants to States $8,483
17.245 Trade Adjustment Assistance $4,218