Finding Text
Finding 2022-001 - U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency): Information on the federal program - Federal Direct Student Loans, Assistance Listing No. 84.268, June 30, 2022; Federal Pell Grants Program, Assistance Listing No. 84.063, June 30, 2022; Federal Supplemental Educational Opportunity Grant, Assistance Listing No. 84. 007, June 30, 2022; Federal Work-Study Program, Assistance Listing No. 84.033, June 30, 2022; TEACH Grant Program, Assistance Listing No. 84.379, June 30, 2022. Criteria - Federal regulations governing the Title IV programs. Condition - Numerous issues of non-compliance were noted, as described in the context below. Questioned Costs - Provided below. Context- We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs: ? Title IV awards for six (6) of twelve (12) students sampled for Return of Title IV (R2T4) did not have funding returned within the required 45-day time frame with total questioned costs of $18,768. ? The College had differences in the following programs which were not reconciled to the general ledger: Program Description Federal Work-Study Federal Direct Student Loans. ? FISAP Work-Study totals did not match general ledger totals. Cause - Oversight by responsible employees not properly monitoring required elements. Effect - The College's participation in the Title IV programs could be subject to USDE sanctions as applicable. Repeat Finding- Yes, regarding Title IV programs not reconciling to the general ledger. Auditor's Recommendation - We recommend the College implement corrective actions to ensure the above findings are resolved and do 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. View of Responsible Officials - The Office of Financial Aid understands the seriousness of these findings and are implementing appropriate strategies to minimize and/or eliminate further audit findings, including: ? Conduct monthly reconciliations between the Business and Financial Aid Offices reviewed and approved by the Vice President of Finance and Administration. ? Provide specialized Title IV training for the Financial Aid staff through resources and services provided by our auditors, The Wesley Peachtree Group, CPAs to improve and ensure processes align with federal reporting guidelines.