Finding 9304 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-22
Audit: 12796
Organization: North Central Michigan College (MI)

AI Summary

  • Core Issue: Incorrect calculation of enrollment days led to errors in Return of Title IV funds for 21 students in Winter 2023.
  • Impacted Requirements: Compliance with OMB guidelines on enrollment period calculations, specifically regarding scheduled breaks.
  • Recommended Follow-Up: Implement a review process to ensure R2T4 calculations are double-checked by a second individual.

Finding Text

Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Eligibility). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.007, 84.033, 84.063, and 84.268; Award Numbers P007A222054, P033A222054, P063P221646, and P268K231646. Criteria. The OMB Compliance Supplement states that the total number of calendar days in an enrollment period includes all days within the period, excluding scheduled breaks of at least five consecutive days. Condition. For the Winter 2023 semester, a break of 5 days (excluding weekends) was being subtracted instead of 9 days (including weekends) from the total days in the term, which resulted in the calculation being incorrect for all students who had returns in the Winter 2023 semester. Cause. The College does not have a review process in place for reporting the number of days used in the enrollment period. Effect. As a result of this condition, Return of Title IV calculations were incorrect for 21 students for the Winter 2023 semester, resulting in $4,265 in excess funds returned to the U.S. Department of Education. It is our understanding that on July 26, 2023, the College repaid the 21 students affected by this calculation error. Recommendation. Management has already taken appropriate corrective action by updating the returns for the 21 students impacted by the calculation error in the Winter 2023 Semester. However, we recommend that the College implement a review process to ensure that the R2T4 calculation is being reviewed by a second individual. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.

Categories

Student Financial Aid Eligibility Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 9302 2023-001
    Significant Deficiency
  • 9303 2023-001
    Significant Deficiency
  • 9305 2023-001
    Significant Deficiency
  • 9306 2023-001
    Significant Deficiency
  • 9307 2023-001
    Significant Deficiency
  • 9308 2023-002
    Significant Deficiency
  • 9309 2023-002
    Significant Deficiency
  • 9310 2023-002
    Significant Deficiency
  • 9311 2023-002
    Significant Deficiency
  • 9312 2023-002
    Significant Deficiency
  • 9313 2023-002
    Significant Deficiency
  • 9314 2023-003
    Significant Deficiency
  • 9315 2023-003
    Significant Deficiency
  • 9316 2023-003
    Significant Deficiency
  • 9317 2023-003
    Significant Deficiency
  • 9318 2023-003
    Significant Deficiency
  • 9319 2023-003
    Significant Deficiency
  • 585744 2023-001
    Significant Deficiency
  • 585745 2023-001
    Significant Deficiency
  • 585746 2023-001
    Significant Deficiency
  • 585747 2023-001
    Significant Deficiency
  • 585748 2023-001
    Significant Deficiency
  • 585749 2023-001
    Significant Deficiency
  • 585750 2023-002
    Significant Deficiency
  • 585751 2023-002
    Significant Deficiency
  • 585752 2023-002
    Significant Deficiency
  • 585753 2023-002
    Significant Deficiency
  • 585754 2023-002
    Significant Deficiency
  • 585755 2023-002
    Significant Deficiency
  • 585756 2023-003
    Significant Deficiency
  • 585757 2023-003
    Significant Deficiency
  • 585758 2023-003
    Significant Deficiency
  • 585759 2023-003
    Significant Deficiency
  • 585760 2023-003
    Significant Deficiency
  • 585761 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.82M
84.425 Higher Education Emergency Relief Fund - Institutions of Higher Education - Institutional $820,885
84.048 Career and Technical Education - Basic Grants to States - Local Annual $109,142
84.033 Federal Work-Study Program $55,000
45.164 Promotion of the Humanities_public Programs $53,490
84.268 Federal Direct Student Loans $49,187
84.007 Federal Supplemental Educational Opportunity Grants $35,000
84.048 Career and Technical Education - Basic Grants to States - Local Leadership $9,200