Finding 959230 (2023-005)

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Requirement
C
Questioned Costs
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Year
2023
Accepted
2024-03-21
Audit: 296385
Organization: San Diego Christian College (CA)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: San Diego Christian College drew down Federal Work Study and FSEOG funds before disbursing them, violating cash management rules.
  • Impacted Requirements: Non-compliance with 34 CFR 668.162(a) and (d) related to cash management under Heightened Cash Monitoring.
  • Recommended Follow-Up: Implement procedures for FSEOG and FWS similar to those for FDL and Pell to ensure compliance with fund disbursement timing.

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.

Categories

Student Financial Aid Cash Management Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.81M
84.063 Federal Pell Grant Program $734,811
84.038 Federal Perkins Loan Program $268,472
84.007 Federal Supplemental Educational Opportunity Grants $48,876
84.007 Covid-19 Federal Supplemental Educational Opportunity Grants $34,188
84.033 Federal Work-Study Program $736