Finding 64471 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-27
Audit: 73872
Organization: Eastern University (PA)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The University lacks the necessary administrative capability to comply with Title IV regulations, leading to noncompliance in financial aid management.
  • Impacted Requirements: Compliance with 34 CFR 668.16 is compromised, resulting in questioned costs of $47,676.
  • Recommended Follow-Up: Improve integration between the financial aid system and online course platform, and develop a cheat sheet for COVID-19 waivers for each award year.

Finding Text

Lack of Administrative Capability Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038, 84.379 (Student Financial Assistance Cluster) Federal Award Identification #: 2021-22 Financial Aid Year Condition: The administrative capability is currently below the required level for maintaining compliance with Title IV regulations. Criteria: 34 CFR 668.16 Questioned Costs: $47,676 Context: In the current year, we found several areas of noncompliance with the Department of Education regulations due to the complexity of administering financial aid for the various educational programs, the communication required between departments for appropriate administering of financial aid, and the number of enrolled students receiving financial aid. Cause: The financial aid department experienced turnover in staffing as well as changes in regulations in the same year while responding to the COVID-19 crisis and applicable waivers. The transmission of information from the online course platform to the financial aid system did not capture the needed information for compliance, and several critical processes required manual entry. Effect: Noncompliance with a number of Title IV regulations. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University adjust the financial aid system and online course platform integration and create a cheat sheet of applicable COVID-19 waivers for each award year. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Lack of Administrative Capability Planned Corrective Action: We have re-reviewed the COVID waivers and made the necessary notes and documentation in our records. Our office is actively recruiting an additional aid counselor to assist with the increased workload due to our significant jump in enrollment (up 52% in the last two years). We are working with our Registrar, Assistant Provost, Brightspace Administrator, and IT to ensure our system is reporting the right information at the right time to the right departments. We have sought guidance from our Department of Education representative in Philadelphia to make sure we are interpreting regulations and guidelines appropriately. We have changed our policies for this upcoming 2023-2024 school year to not disburse any aid until after all of our terms for a given semester have passed their add/drop periods so we can ensure that each student has actively started their program, is continuing to be an active participant, and if not, that we take the necessary steps to adjust or cancel their aid appropriately. This is not something that we take lightly and are determined to correct these issues and take additional preventative measures so that they do not happen again. Person Responsible for Corrective Action Plan: Andrea L Ruth, Director of Financial Aid Anticipated Date of Completion: 4/1/2023

Categories

Student Financial Aid Material Weakness

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $26.62M
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $3.08M
84.063 Federal Pell Grant Program $2.65M
84.031 Higher Education_institutional Aid $641,089
84.425 Covid-19 Education Stabilization Fund Heerf - Minority Serving Institutions $505,572
84.038 Federal Perkins Loan Program $456,264
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $309,892
84.007 Federal Supplemental Educational Opportunity Grants $195,900
84.033 Federal Work-Study Program $183,545
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $23,732