Finding 964896 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-03-28
Audit: 300168
Organization: Colorado Mountain College (CO)

AI Summary

  • Core Issue: The College failed to return Title IV federal funds checks not cashed within the 240-day limit.
  • Impacted Requirements: Non-compliance with 34 CFR 688.164 regarding the timely return of unclaimed federal funds.
  • Recommended Follow-Up: Implement a monitoring control to ensure checks are tracked and returned as required.

Finding Text

Criteria or specific requirement: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Code of Federal Regulations, 34 CFR 688.164, requires any Title IV federal funds disbursed to a student or parent that are not received or negotiated must be returned to the appropriated federal financial aid program no later than 240 days after the check or electronic fund transfer (EFT) was issued. If a check or an EFT is returned, the College may make additional attempts to deliver the funds, provided that those attempts are made no later than 45 days after the funds were returned or rejected. In case where the College does not make another attempt, the funds must be returned before the end of the initial 45-day period. The College must cease all attempts to disburse the funds and return them no later than 240 days after the date it issued the first check. Under no circumstances may unclaimed Title IV FSA funds escheat to the state, or revert to the College, or any other third party. Condition: During our testing of the 240-day requirement, we identified the College was not in compliance with the federal financial aid regulations requirement that any Title IV federal funds disbursed to a student or parent that are not received or negotiated must be returned to the appropriated federal financial aid program no later than 240 days after the check or electronic fund transfer (EFT) was issued. Questioned costs: $49,049. Context: During our testing, we identified 27 out of 57 outstanding student checks were Title IV federal funds checks that were not returned within the 240-day limit. Cause: The College did not have adequate processes in place to monitor outstanding Title IV disbursement checks throughout the year. Effect: The College is not in compliance with Department of Education requirements. Repeat finding: No Recommendation: CLA recommends that the College review the requirements and implement a monitoring control to monitor and return the checks throughout the year. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Student Financial Aid Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 388448 2023-001
    Significant Deficiency
  • 388449 2023-001
    Significant Deficiency
  • 388450 2023-001
    Significant Deficiency
  • 388451 2023-001
    Significant Deficiency
  • 388452 2023-002
    Significant Deficiency
  • 388453 2023-002
    Significant Deficiency
  • 388454 2023-002
    Significant Deficiency
  • 388455 2023-002
    Significant Deficiency
  • 388456 2023-003
    Significant Deficiency
  • 388457 2023-003
    Significant Deficiency
  • 964890 2023-001
    Significant Deficiency
  • 964891 2023-001
    Significant Deficiency
  • 964892 2023-001
    Significant Deficiency
  • 964893 2023-001
    Significant Deficiency
  • 964894 2023-002
    Significant Deficiency
  • 964895 2023-002
    Significant Deficiency
  • 964897 2023-002
    Significant Deficiency
  • 964898 2023-003
    Significant Deficiency
  • 964899 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $3.46M
84.268 Federal Direct Student Loans $2.81M
84.425 (covid-19) Irepo Rural Support Initiative $1.05M
84.425 (covid-19) Colorado Governor's Emergency Education Relief Funds $1.02M
84.425 (covid-19) Higher Educational Emergency Relief Fund-Heerf III-Student Aid $982,962
84.047 Trio Upward Bound $549,458
84.031 Title III-Higher Education Institutional Aid $376,727
21.027 (covid-19) Coronavirus State and Local Fiscal Recovery Funds $343,340
94.002 Americorps Seniots Retired and Senior Volunteer Program $330,082
84.425 (covid-19) Higher Educational Emergency Relief Fund-Heerf III - Msi $327,738
84.042 Trio Student Support Services $250,107
84.048 Career and Technical Education - Basic Grants to States (perkins Const) $211,584
84.048 Career and Technical Education - Basic Grants to States (perkins) $139,897
84.007 Federal Supplemental Educational Opportunity Grants $97,838
10.699 U.s. Forest Service Cmc Partnership-Winter Internship Pilot $91,858
66.951 Environmental Education Grants $71,564
93.575 Child Care Operations Stabilization $63,000
94.017 Americorps Seniors Senior Demonstration Program $43,625
84.033 Federal Work-Study Program $38,897
19.009 Academic Exchange Programs $17,727
84.425 (covid-19) Higher Educational Emergency Relief Fund-Heerf III-Institutional $17,210
93.779 Centers for Medicare and Medicaid Services (cms) Research, Demonstration and Evaluation $14,760
10.351 Rural Business Development Grant $7,423
45.310 Lsta Arpa State Grants $3,428
84.048 Career and Technical Education - Basic Grants to States (perkins E-Sports) $1,779
84.425 (covid-19) Higher Educational Emergency Relief Fund-Heerf II-Institutional $0