Finding 628480 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-22
Audit: 50813
Organization: Ashland University (OH)

AI Summary

  • Core Issue: There were discrepancies in verification status codes between the University's data and the COD data for 3 out of 25 transactions tested.
  • Impacted Requirements: Institutions must submit accurate origination and disbursement records to the ED's COD at least every 15 days, but reconciliations were not consistently performed.
  • Recommended Follow-Up: The University should enhance its controls and procedures for COD data processing to ensure timely identification and resolution of discrepancies.

Finding Text

Finding 2022-003: a. Identification of the federal program and specific federal award: i. Assistance Listing title and number: Student Financial Assistance - Cluster, Federal Pell Grant (Pell) - 84.063 ii. Federal award identification number and year: P063P210331, 2021 - 2022 Federal Award Year iii. Name of federal agency: U.S. Department of Education iv. Name of the applicable pass-through entity: Not applicable b. Criteria or specific requirement (including statutory, regulatory or other citation): Institutions are required to submit for the Federal Direct Loan, Pell Grant, Teacher Education Assistance For College And Higher Education Grant, and Iraq & Afghanistan Service Grant origination and disbursement records to the ED?s Common Origination and Disbursement (COD). Institutions may do this by reporting once every 15 calendar days, biweekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner. c. Condition: As part of our testing of the origination records, we noted that within a sample of 25 transactions there were three records that had differences between the COD data and the University?s data for their verification status codes. d. Cause: The unresolved variances in the verification codes were caused by a personnel change that resulted in the control not functioning appropriately during a period within the year ended May 31, 2022. The University has a process to ensure that uploads occurred at least every two weeks to meet the requirements of the COD, however reconciliations were not consistently performed to ensure the data agreed. e. Effect or potential effect: The University?s records did not agree to the records within the COD, which could cause inaccurate data to be used either the ED, the University, lenders or other users of the COD data. f. Questioned costs: There are no questioned costs associated with this finding. g. Context: This finding impacts three records in a sample of 25 records tested. h. Identification as a repeat finding, if applicable: This is not a repeat finding. i. Recommendation: We recommend the University review its controls, policies and procedures related to the processing of COD data to ensure that each upload is reviewed and compared and that any differences are identified and resolved appropriately and in a timely manner. j. Views of responsible officials: Management concurs with the finding. Once management was made aware of the unresolved variances of verification codes, they were corrected immediately. Upon discovery in August 2022, the Student Financial Aid Office immediately implemented additional controls and training to ensure these issues do not reoccur.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 52037 2022-002
    Material Weakness
  • 52038 2022-003
    Significant Deficiency
  • 52039 2022-004
    Significant Deficiency
  • 52040 2022-005
    Significant Deficiency
  • 628479 2022-002
    Material Weakness
  • 628481 2022-004
    Significant Deficiency
  • 628482 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $20.43M
84.063 Federal Pell Grant Program $12.89M
84.425 Covid-19 - Education Stabilization Fund $8.26M
84.038 Perkins Loan Program $1.07M
84.007 Federal Supplemental Educational Opportunity Grants $682,775
93.264 Nurse Faculty Loan Program (nflp) $528,744
84.033 Federal Work-Study Program $455,498
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $82,118
47.076 Education and Human Resources $79,338
93.867 Vision Research $69,212
84.425 Covid-19-Education Stabilization Fund $52,795
47.074 Biological Sciences $45,898
59.037 Small Business Development Centers $37,490
81.049 Office of Science Financial Assistance Program $31,009
21.019 Covid-19-Coronavirus Relief Fund $9,425