Finding 945730 (2021-023)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2021
Accepted
2024-02-15
Audit: 290538
Organization: Saint Augustine's University (NC)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University failed to notify students or parents of Federal Direct Student Loan disbursements within the required timeframe.
  • Impacted Requirements: This violates federal regulations (34 CFR section 668.165) regarding timely award notifications and cancellation rights.
  • Recommended Follow-Up: Enhance internal controls and procedures to ensure compliance with federal guidelines, utilizing the new ERP system for timely notifications.

Finding Text

Program Information: Federal Direct Student Loan Program (ALN 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Disbursements To or On Behalf of Students - Award Notification - Federal regulations (34 CFR section 668.165 (a)(6)(i)) require that the institution notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to the U.S. Department of Education; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement. Institutions that implement an affirmative confirmation process (as described in 34 CFR section 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan, FPL funds, or TEACH Grants. Condition: For certain students who received disbursements of Federal Direct Student Loan funds, the University was unable to provide evidence that the student or parent was notified of their award disbursement within the required time frame after crediting the student’s account. Cause: Lack of internal controls and administrative oversight. Effect or Potential Effect: Students were not properly notified of award disbursements and/or their right to cancel/decline loan awards. Questioned Costs: None. Context: For 60 of 60 loan disbursements tested, the University was unable to provide evidence that parents and/or students received award notifications within the required time frame. Repeat Finding: This is a repeat finding from prior year. This was reported as Finding 2020-010 in the prior year schedule of findings and questioned costs. Recommendation: We recommend that the University enhance its procedures and internal controls to ensure that federal awards are disbursed in accordance with federal guidelines. Views of Responsible Officials and Planned Corrective Actions: Primarily, the University implemented a comprehensive ERP software tool, Ellucian Colleague in FY2022 going forward. The built in internal control will readily provide data on those students who are eligible for aid and notify them of their opportunity to accept or decline aid. In addition, the notification documents will be stored in the ERP system and be available to retrieve. Within 15 days after disbursements students and parents are sent an email notifying them their loan has been disbursed to their account.

Categories

Internal Control / Segregation of Duties Student Financial Aid Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 369244 2021-015
    Material Weakness
  • 369245 2021-016
    Material Weakness
  • 369246 2021-017
    Material Weakness Repeat
  • 369247 2021-021
    Material Weakness Repeat
  • 369248 2021-025
    Material Weakness Repeat
  • 369249 2021-015
    Material Weakness
  • 369250 2021-016
    Material Weakness
  • 369251 2021-017
    Material Weakness Repeat
  • 369252 2021-026
    Material Weakness Repeat
  • 369253 2021-027
    Material Weakness Repeat
  • 369254 2021-015
    Material Weakness
  • 369255 2021-016
    Material Weakness
  • 369256 2021-017
    Material Weakness Repeat
  • 369257 2021-018
    Material Weakness Repeat
  • 369258 2021-021
    Material Weakness Repeat
  • 369259 2021-025
    Material Weakness Repeat
  • 369260 2021-015
    Material Weakness
  • 369261 2021-016
    Material Weakness
  • 369262 2021-017
    Material Weakness Repeat
  • 369263 2021-026
    Material Weakness Repeat
  • 369264 2021-015
    Material Weakness
  • 369265 2021-016
    Material Weakness
  • 369266 2021-017
    Material Weakness Repeat
  • 369267 2021-026
    Material Weakness Repeat
  • 369268 2021-015
    Material Weakness
  • 369269 2021-016
    Material Weakness
  • 369270 2021-017
    Material Weakness Repeat
  • 369271 2021-026
    Material Weakness Repeat
  • 369272 2021-015
    Material Weakness
  • 369273 2021-016
    Material Weakness
  • 369274 2021-017
    Material Weakness Repeat
  • 369275 2021-018
    Material Weakness Repeat
  • 369276 2021-019
    Material Weakness Repeat
  • 369277 2021-021
    Material Weakness Repeat
  • 369278 2021-024
    Material Weakness Repeat
  • 369279 2021-025
    Material Weakness Repeat
  • 369280 2021-015
    Material Weakness
  • 369281 2021-016
    Material Weakness
  • 369282 2021-017
    Material Weakness Repeat
  • 369283 2021-018
    Material Weakness Repeat
  • 369284 2021-019
    Material Weakness Repeat
  • 369285 2021-020
    - Repeat
  • 369286 2021-021
    Material Weakness Repeat
  • 369287 2021-022
    Material Weakness Repeat
  • 369288 2021-023
    Material Weakness Repeat
  • 369289 2021-024
    Material Weakness Repeat
  • 369290 2021-025
    - Repeat
  • 369291 2021-015
    Material Weakness
  • 369292 2021-016
    Material Weakness
  • 369293 2021-017
    Material Weakness Repeat
  • 369294 2021-026
    Material Weakness Repeat
  • 369295 2021-015
    Material Weakness
  • 369296 2021-016
    Material Weakness
  • 369297 2021-017
    Material Weakness Repeat
  • 369298 2021-026
    Material Weakness Repeat
  • 369299 2021-015
    Material Weakness
  • 369300 2021-016
    Material Weakness
  • 369301 2021-017
    Material Weakness Repeat
  • 369302 2021-026
    Material Weakness Repeat
  • 369303 2021-015
    Material Weakness
  • 369304 2021-016
    Material Weakness
  • 369305 2021-017
    Material Weakness Repeat
  • 369306 2021-026
    Material Weakness Repeat
  • 945686 2021-015
    Material Weakness
  • 945687 2021-016
    Material Weakness
  • 945688 2021-017
    Material Weakness Repeat
  • 945689 2021-021
    Material Weakness Repeat
  • 945690 2021-025
    Material Weakness Repeat
  • 945691 2021-015
    Material Weakness
  • 945692 2021-016
    Material Weakness
  • 945693 2021-017
    Material Weakness Repeat
  • 945694 2021-026
    Material Weakness Repeat
  • 945695 2021-027
    Material Weakness Repeat
  • 945696 2021-015
    Material Weakness
  • 945697 2021-016
    Material Weakness
  • 945698 2021-017
    Material Weakness Repeat
  • 945699 2021-018
    Material Weakness Repeat
  • 945700 2021-021
    Material Weakness Repeat
  • 945701 2021-025
    Material Weakness Repeat
  • 945702 2021-015
    Material Weakness
  • 945703 2021-016
    Material Weakness
  • 945704 2021-017
    Material Weakness Repeat
  • 945705 2021-026
    Material Weakness Repeat
  • 945706 2021-015
    Material Weakness
  • 945707 2021-016
    Material Weakness
  • 945708 2021-017
    Material Weakness Repeat
  • 945709 2021-026
    Material Weakness Repeat
  • 945710 2021-015
    Material Weakness
  • 945711 2021-016
    Material Weakness
  • 945712 2021-017
    Material Weakness Repeat
  • 945713 2021-026
    Material Weakness Repeat
  • 945714 2021-015
    Material Weakness
  • 945715 2021-016
    Material Weakness
  • 945716 2021-017
    Material Weakness Repeat
  • 945717 2021-018
    Material Weakness Repeat
  • 945718 2021-019
    Material Weakness Repeat
  • 945719 2021-021
    Material Weakness Repeat
  • 945720 2021-024
    Material Weakness Repeat
  • 945721 2021-025
    Material Weakness Repeat
  • 945722 2021-015
    Material Weakness
  • 945723 2021-016
    Material Weakness
  • 945724 2021-017
    Material Weakness Repeat
  • 945725 2021-018
    Material Weakness Repeat
  • 945726 2021-019
    Material Weakness Repeat
  • 945727 2021-020
    - Repeat
  • 945728 2021-021
    Material Weakness Repeat
  • 945729 2021-022
    Material Weakness Repeat
  • 945731 2021-024
    Material Weakness Repeat
  • 945732 2021-025
    - Repeat
  • 945733 2021-015
    Material Weakness
  • 945734 2021-016
    Material Weakness
  • 945735 2021-017
    Material Weakness Repeat
  • 945736 2021-026
    Material Weakness Repeat
  • 945737 2021-015
    Material Weakness
  • 945738 2021-016
    Material Weakness
  • 945739 2021-017
    Material Weakness Repeat
  • 945740 2021-026
    Material Weakness Repeat
  • 945741 2021-015
    Material Weakness
  • 945742 2021-016
    Material Weakness
  • 945743 2021-017
    Material Weakness Repeat
  • 945744 2021-026
    Material Weakness Repeat
  • 945745 2021-015
    Material Weakness
  • 945746 2021-016
    Material Weakness
  • 945747 2021-017
    Material Weakness Repeat
  • 945748 2021-026
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.63M
84.063 Federal Pell Grant Program $3.76M
84.031 Higher Education_institutional Aid $2.17M
84.425 Education Stabilization Fund $1.78M
84.007 Federal Supplemental Educational Opportunity Grants $1.12M
84.047 Trio_upward Bound $771,898
84.044 Trio_talent Search $552,558
84.033 Federal Work-Study Program $536,970
84.938 Disaster Recovery Assistance for Education $295,188
84.042 Trio_student Support Services $280,096
47.076 Education and Human Resources $51,642
15.904 Historic Preservation Fund Grants-in-Aid $1,450