Finding 947473 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-28
Audit: 292694
Organization: William Jessup University (CA)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Discrepancies between actual disbursement dates and reported dates for Federal Direct Loans and Pell Grants.
  • Impacted Requirements: Compliance with 34CFR 668.164(a) regarding accurate reporting of disbursement dates.
  • Recommended Follow-Up: Implement procedures to ensure COD reporting aligns with actual disbursement dates.

Finding Text

Common Origination and Disbursement (COD) Reporting Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The dates when Federal Direct Loans (FDL) and Pell were disbursed to student's account did not always agree to the disbursement dates as reported in COD. Criteria: 34CFR 668.164(a) Questioned Costs: $0 Context: Out of 259 subsidized, unsubsidized, Plus loans, and Pell disbursement records tested, 25 had COD loan and Pell disbursement date errors. The errors were primarily a spring 2023 disbursement batch which reported Pell and FDL disbursements to COD as 2/21/2023 but were actually posted to the students’ accounts on 3/24/2023. There were no errors in the amounts reported, just the date of disbursement and the funds were not drawn down from G5 until 3/28/2023 so no cash management violation noted. Cause: The anticipated disbursement dates in COD were not updated to the actual dates that Pell and FDL were disbursed to the students' accounts. Effect: Inaccurate FDL reporting can impact a student's interest accumulating period based on the dates of the loan disbursement dates. Inaccurate Pell reporting could allow a student to exceed their lifetime limit. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend that procedures be implemented to ensure that disbursement reporting to COD be reflective of the actual disbursement dates. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Student Financial Aid Cash Management Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.39M
84.063 Federal Pell Grant Program $1.97M
84.033 Federal Work-Study Program $157,136
84.007 Federal Supplemental Educational Opportunity Grants $96,780
20.111 Aircraft Pilots Workforce Development Grant Program $75,133
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $37,588
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $20,109