Finding 638197 (2022-003)

Significant Deficiency
Requirement
C
Questioned Costs
$1
Year
2022
Accepted
2023-03-12
Audit: 56907
Organization: Arizona Christian University (AZ)

AI Summary

  • Core Issue: The University drew down excess federal funds of $351,837 and failed to return them within the required three days.
  • Impacted Requirements: This finding violates 34 CFR 668.166, which mandates timely disbursement and return of federal student aid funds.
  • Recommended Follow-up: The University should establish procedures to ensure timely accounting and return of federal aid within the three-day timeframe.

Finding Text

2022-003 Cash Management Disbursement (G5 Drawdown) Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster ALN Numbers: Various Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ?Significant Deficiency in Internal Control Over Compliance ?Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.166 requires institutions to disburse FSA funds as soon as administratively feasible but no later than three business days following the date the institution received those funds. Condition: The University drew excess financial funds during the Fall 2021 and did not return the excess cash within the three-day requirement. Questioned Costs: $351,837 Context: During our testing, we noted the University overdrew financial aid funds from the Department of Education in the amount of $351,837 which was not returned within three days to the Department of Education. The Department of Education had contacted the University on multiple occasion until the funds were returned in December 2021. Cause: The University did not have administrative capability to be able to account for all federal student financial aid dollars expended. Effect: The University is not complying with federal requirements regarding excess cash. This resulted in questioned costs that include return of funds on excess funds drawn down. Repeat Finding: No Recommendation: The University should implement a procedure to ensure federal aid drawn down are accounted for timely and returned within 3 days. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Cash Management

Other Findings in this Audit

  • 61747 2022-001
    Significant Deficiency Repeat
  • 61748 2022-002
    Significant Deficiency
  • 61749 2022-003
    Significant Deficiency
  • 61750 2022-001
    Significant Deficiency Repeat
  • 61751 2022-002
    Significant Deficiency
  • 61752 2022-003
    Significant Deficiency
  • 61753 2022-001
    Significant Deficiency Repeat
  • 61754 2022-002
    Significant Deficiency
  • 61755 2022-003
    Significant Deficiency
  • 61756 2022-001
    Significant Deficiency Repeat
  • 61757 2022-002
    Significant Deficiency
  • 61758 2022-003
    Significant Deficiency
  • 61759 2022-001
    Significant Deficiency Repeat
  • 61760 2022-002
    Significant Deficiency
  • 61761 2022-003
    Significant Deficiency
  • 638189 2022-001
    Significant Deficiency Repeat
  • 638190 2022-002
    Significant Deficiency
  • 638191 2022-003
    Significant Deficiency
  • 638192 2022-001
    Significant Deficiency Repeat
  • 638193 2022-002
    Significant Deficiency
  • 638194 2022-003
    Significant Deficiency
  • 638195 2022-001
    Significant Deficiency Repeat
  • 638196 2022-002
    Significant Deficiency
  • 638198 2022-001
    Significant Deficiency Repeat
  • 638199 2022-002
    Significant Deficiency
  • 638200 2022-003
    Significant Deficiency
  • 638201 2022-001
    Significant Deficiency Repeat
  • 638202 2022-002
    Significant Deficiency
  • 638203 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loan Program $6.56M
84.063 Federal Pell Grants $1.87M
84.007 Federal Supplemental Educational Opportunity Grant Program $85,329
84.033 Federal Work-Study Program $53,982
84.379 Teach Grants $50,442