Finding 90887 (2022-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-03-27
Audit: 79889
Organization: Presentation College (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Significant errors in student financial aid awards were identified, including under and over awards for Pell and Direct Loans.
  • Impacted Requirements: Compliance with 34 CFR sections 690 and 685 regarding eligibility and award calculations for federal financial aid programs.
  • Recommended Follow-Up: Implement training for new staff on financial aid processes and establish an independent review of aid packaging to prevent future errors.

Finding Text

2022-002 Department of Education Student Financial Aid Cluster CFDA # 84.268 ? Federal Direct Student Loans CFDA # 84.038 ? Federal Perkins Loan Program CFDA # 84.063 ? Federal Pell Grant Program 2021-2022 Award Year Eligibility ? Calculation of the Amount of Pell, Subsidized and Unsubsidized Direct Loan Assistance Awarded Material Weakness in Internal Controls over Compliance and Noncompliance Criteria: 34 CFR section 690 provides the applicable criteria and guidance on awards under the Federal Pell Grant Program. 34 CFR section 685 provides the applicable criteria and guidance on awards under the Federal Direct Student Loans Program. Condition: During testing over the eligibility requirements, the following deficiencies were noted: ?2 of 60 students were not awarded the correct amount of Pell. Both students were under awarded for the Summer 2022 semester. ?6 of 60 students were not awarded the correct amount of subsidized loans. 4 students were under awarded subsidized loans based on being packaged as the wrong year in school; 1 student was not given full amount of loan agreed to on packaging; and 1 student was over awarded subsidized loans as the student did not have financial need. ?4 of 60 students were not awarded the correct amount of unsubsidized loans. 3 of the students were under awarded unsubsidized loans based on being packaged as the wrong year in school. 1 student was awarded an unsubsidized loan which was not credited to student account but was reported in the COD system. ?1 of 60 students received subsidized/unsubsidized loans exceeding the aggregate limit. Student was over awarded subsidized loans in the 2021 fiscal year, and this was not properly corrected before 2022 aid was reported. Cause: Presentation College experienced a staffing shortage along with turnover in the financial aid department and errors occurred as part of packaging the student aid throughout the year. Effect: Students were not awarded the proper amount of aid. Questioned Costs: Pell error: $1,769 under awarded; Direct subsidized Loans: $3,485 under awarded and $3,464 over awarded; Direct unsubsidized Loans: $5,939 under awarded. Context/Sampling: A nonstatistical sample of 60 students who received Title IV disbursements out of 485 students who received aid. The total aid tested in sample was Pell grants of $151,658 and Direct loans of $349,576. Repeat Finding from Prior Year(s): Yes. Recommendation: We recommend that new staff attend training on awarding financial to gain an understanding of the process to package the aid correctly. We also recommend that a sample number of students be reviewed by someone outside of the person completing the packaging to ensure that errors are not occurring. Views of Responsible Officials: Management agrees with the finding.

Categories

Questioned Costs Student Financial Aid Eligibility Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 88179 2022-003
    Significant Deficiency Repeat
  • 88180 2022-006
    Significant Deficiency Repeat
  • 88181 2022-007
    Significant Deficiency
  • 90879 2022-002
    Material Weakness Repeat
  • 90880 2022-003
    Significant Deficiency Repeat
  • 90881 2022-004
    Significant Deficiency Repeat
  • 90882 2022-005
    Significant Deficiency
  • 90883 2022-006
    Significant Deficiency Repeat
  • 90884 2022-007
    Significant Deficiency
  • 90885 2022-006
    Significant Deficiency Repeat
  • 90886 2022-007
    Significant Deficiency
  • 90888 2022-003
    Significant Deficiency Repeat
  • 90889 2022-005
    Significant Deficiency
  • 90890 2022-006
    Significant Deficiency Repeat
  • 90891 2022-007
    Significant Deficiency
  • 90892 2022-008
    Significant Deficiency
  • 90893 2022-010
    Significant Deficiency
  • 90894 2022-009
    Significant Deficiency
  • 90895 2022-010
    Significant Deficiency
  • 90896 2022-002
    Material Weakness Repeat
  • 664621 2022-003
    Significant Deficiency Repeat
  • 664622 2022-006
    Significant Deficiency Repeat
  • 664623 2022-007
    Significant Deficiency
  • 667321 2022-002
    Material Weakness Repeat
  • 667322 2022-003
    Significant Deficiency Repeat
  • 667323 2022-004
    Significant Deficiency Repeat
  • 667324 2022-005
    Significant Deficiency
  • 667325 2022-006
    Significant Deficiency Repeat
  • 667326 2022-007
    Significant Deficiency
  • 667327 2022-006
    Significant Deficiency Repeat
  • 667328 2022-007
    Significant Deficiency
  • 667329 2022-002
    Material Weakness Repeat
  • 667330 2022-003
    Significant Deficiency Repeat
  • 667331 2022-005
    Significant Deficiency
  • 667332 2022-006
    Significant Deficiency Repeat
  • 667333 2022-007
    Significant Deficiency
  • 667334 2022-008
    Significant Deficiency
  • 667335 2022-010
    Significant Deficiency
  • 667336 2022-009
    Significant Deficiency
  • 667337 2022-010
    Significant Deficiency
  • 667338 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.85M
84.063 Federal Pell Grant Program $1.04M
84.425 Covid - 19, Education Stabilization Fund $579,418
84.038 Federal Perkins Loan Program $380,225
84.425 Covid -19 - Education Stabilization Fund $85,050
84.007 Federal Supplemental Educational Opportunity Grants $63,316
84.033 Federal Work-Study Program $45,246
21.019 Covid - 19 Coronavirus Relief Fund $32,978