Finding 620049 (2022-001)

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Requirement
A
Questioned Costs
-
Year
2022
Accepted
2022-11-15
Audit: 39802
Organization: Huntsville Bible College, Inc. (AL)

AI Summary

  • Core Issue: Financial aid grants were applied to student balances based on verbal consent, not written consent.
  • Impacted Requirements: This violates the Uniform Guidance in 2 CFR Section 200.303, which mandates proper internal controls for compliance.
  • Recommended Follow-Up: The Board should enhance policies and procedures to ensure all transactions comply with regulations.

Finding Text

Program: U.S. Department of Education; Assistance Listing #84.425E, for 8/1/2021 through 7/31/2022. Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: Certain financial aid grants to students were applied to outstanding balances with verbal consent. Context: This is a condition identified per review of the Board?s compliance with specified requirements using a statistically valid sample. Effect: Certain financial aid grants to students were applied to outstanding balances without proper written consent. Cause: Policies and procedures were not followed to ensure transactions are in compliance with regulations. Repeat of a Prior-Year Finding: No Recommendation: The Board should strengthen its policies and procedures over proper procedures to ensure that expenditures are in compliance. View of Responsible Officials: The Board and management agree with this finding.

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $480,620
84.425 Covid-19 Education Stabilization Fund $184,434
84.063 Federal Pell Grant Program $144,165