Finding 611652 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The College failed to return federal funds to the Department of Education within the required 240 days after checks were not cashed.
  • Impacted Requirements: Compliance with ED regulations regarding the timely return of Title IV funds is critical.
  • Recommended Follow-Up: The College should implement regular reviews of outstanding checks to ensure compliance with return deadlines.

Finding Text

2022 ? 001 Federal agency: U.S. Department of Education Federal program title: Student Financial Assistance Cluster Assistance Listing Number: Various Award Period: July 01, 2021 - June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Department of Education (ED) requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45 day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Questioned Costs: None Context: During our testing, it was noted the College failed to return the funds in a timely manner. Cause: The College?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Effect: The College was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the College reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 35208 2022-001
    Significant Deficiency
  • 35209 2022-001
    Significant Deficiency
  • 35210 2022-001
    Significant Deficiency
  • 35211 2022-001
    Significant Deficiency
  • 35212 2022-002
    Significant Deficiency
  • 35213 2022-002
    Significant Deficiency
  • 611650 2022-001
    Significant Deficiency
  • 611651 2022-001
    Significant Deficiency
  • 611653 2022-001
    Significant Deficiency
  • 611654 2022-002
    Significant Deficiency
  • 611655 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425E Heerf Student Aid Portion $13.01M
84.063 Federal Pell Grant Program $11.41M
84.425F Heerf Institutional Portion $9.25M
84.268 Federal Direct Student Loans $4.17M
84.425 Education Stabilization Fund $1.58M
84.007 Federal Supplemental Educational Opportunity Grants $740,619
84.048 Career and Technical Education -- Basic Grants to States $548,708
84.042A Student Support Services - Trio $425,585
84.047M Upward Bound Math & Science - Trio $309,973
84.047V Veterans Upward Bound $265,031
16.812 Second Chance Act Reentry Initiative $219,282
84.033 Federal Work-Study Program $213,777
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $195,795
47.076 Education and Human Resources $87,781
84.031A Title III $41,924
12.903 Gencyber Grants Program $31,049
11.300 Investments for Public Works and Economic Development Facilities $24,498
84.002 Adult Education - Basic Grants to States $7,936
45.025 Promotion of the Arts_partnership Agreements $1,623