Finding Text
Noncompliance with HCM 1 Monitoring
DEPARTMENT OF EDUCATION
ALN #: 84.033; 84.007 Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: San Diego Christian College did not disburse Federal Work Study (FWS) and Federal Supplemental Educational Opportunity Grant (FSEOG) aid before drawing down the funds for the spring 2023 semester
Criteria: 34 CFR 668.162 (a), 34 CFR 668.162 (d)
Questioned Costs: $0
Context: San Diego Christian College inadvertently drew the full 2022-2023 authorization for FWS and FSEOG in December 2022 before the Spring semester began. This resulted in excess cash on hand and non-compliance with Heightened Cash Monitoring, which San Diego Christian College is currently on for cash management. However, San Diego Christian College did comply with these requirements for FDL and Pell during the fiscal year.
Cause: Turnover in staffing.
Effect: Non-compliance with cash management requirement to minimize the time between drawing the Title IV funds and disbursing those funds to students. Non-compliance with HCM requirements for FWS and FSEOG. FWS funds of approximately $34,000 were held for 6 months and FSEOG funds of approximately $25,000 were held for 1 month.
Identification as repeat finding, if applicable: N/A
Recommendation: While San Diego Christian College has procedures for complying with HCM for FDL and Pell, we recommend that a similar process be implemented for FSEOG and FWS to ensure the funds aren't drawn until disbursed to students.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.