Finding Text
Finding 2022-002 - U.S. Department of Education (USDE). Title IV Student Financial Aid Programs (Significant Deficiency): Information on the Federal Program - Federal Pell Grants Program, CFDA No. 84. 063, June 30 2022; Federal Work Study Program, CFDA No. 84.033, June 30, 2022; Federal Supplemental Educational Opportunity Grant, CFDA No. 84.007, June 30, 2022; Federal Direct Student Loans, CFDA No. 84. 268, June 30, 2022. Criteria - Federal regulations governing the Title IV programs. Condition - Numerous compliances were noted, as more fully described in the context below. Questioned Costs - Context- We observed the following condition in connection with our testing of the various U. S. Department of Education, Title IV, Student Financial Assistance Programs: a) Two (2) out of 60 students selected for R2T4 testing did not have his/her funds returned to the U.S. Department of Education within the required 45 days. b) The College had differences in the following programs which were not reconciled to the general ledger: Federal Work Study, Federal Pell Grant, Federal Direct Student Loans and Federal Supplemental Educational Opportunity Grant (SEOG). Cause - Oversight by responsible employees of properly monitoring required elements. Effect - The College's participation in the Title IV programs could be subject to USDE sanctions as applicable. Auditor's Recommendation - The College should implement corrective actions to ensure that the above findings are resolved and does not recur in future periods. Moreover, internal controls over compliance with federal program regulations should be revisited to ensure adequate supervisory controls, quality assurance reviews of compliance steps, technical training of staff, and adequate procedures are being followed for compliance purposes.