Finding 609209 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-30
Audit: 24773
Organization: Livingstone College (NC)

AI Summary

  • Core Issue: The College has significant non-compliance with Title IV federal regulations, impacting student financial aid programs.
  • Impacted Requirements: Missing transcripts, delayed refunds beyond 14 days, and late returns of Title IV funds beyond 45 days.
  • Recommended Follow-Up: The College must implement corrective actions and improve staffing in the Financial Aid Office to prevent future issues.

Finding Text

Finding 2022-001 - U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (material weakness): 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. Criteria - Federal regulations governing Title IV programs. Condition - Non-compliances were noted, as more fully described in the context below. Questioned Costs-As 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. a. Three (3) out of 60 students tested had missing official transcripts with total questioned costs of $36,516. b. Twelve (12) out of 26 students tested did not have refunds given to students within the required 14 days. c. Two (2) out of six (6) students tested for R2T4 did not have Title IV funds returned to the Federal government within the required 45 days. Cause - Oversight by responsible employees. Effect - The College's participation in the Title IV programs could be subject to USOE sanctions as applicable. Repeat Finding - No Auditor's Recommendation - The College should implement corrective actions to ensure that the above findings are resolved and will not recur in future periods. Views of Responsible Officials - The College concurs with the finding. The College continues to be challenged with finding qualified staff in the Financial Aid Office and Business Office. The College will be working closely with staffing companies to identify qualified personnel. The College is working diligently to ensure all positions are filled to ensure compliance with all federal and state regulations. We understand the seriousness of these findings and implementing appropriate strategies to minimize and/or eliminate further audit findings. The College plans to start implementing these strategies beginning July 1, 2023.

Categories

Questioned Costs Student Financial Aid Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 32766 2022-001
    Material Weakness
  • 32767 2022-001
    Material Weakness
  • 32768 2022-001
    Material Weakness
  • 32769 2022-001
    Material Weakness
  • 609208 2022-001
    Material Weakness
  • 609210 2022-001
    Material Weakness
  • 609211 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.33M
84.063 Federal Pell Grant Program $4.19M
84.031 Higher Education_institutional Aid $580,391
21.019 Coronavirus Relief Fund $436,937
15.932 Preservation of Historic Structures on the Campuses of Historically Black Colleges and Universities (hbcus). $347,018
84.042 Trio_student Support Services $295,552
84.033 Federal Work-Study Program $230,937
84.007 Federal Supplemental Educational Opportunity Grants $154,428
84.425 Education Stabilization Fund $124,725
47.082 Trans-Nsf Recovery Act Reasearch Support $34,365
47.076 Education and Human Resources $21,485
93.940 Hiv Prevention Activities_health Department Based $13,743
15.904 Historic Preservation Fund Grants-in-Aid $850