Finding 966164 (2023-004)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-29

AI Summary

  • Core Issue: The College failed to document the return of Title IV funds for students who withdrew, impacting compliance with federal regulations.
  • Impacted Requirements: Lack of proper record retention procedures led to an inability to verify timely returns of federal financial aid as mandated by Title IV.
  • Recommended Follow-Up: Develop and implement policies for documentation and communication regarding student withdrawals and ensure timely returns of financial aid to the Department of Education.

Finding Text

Information of Federal Program: Student Financial Aid Cluster Federal Pell Grant Program – CFDA No. 84.063 Federal Direct Student Loans – CFDA No. 84.268 Federal Supplemental Educational Opportunity Grant – CFDA No. 84.007 Federal Work-Study Program – CFDA No. 84.033 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student’s withdrawal date (34 CFR section 668.22). Condition: During the testing of the return of Title IV funds, it was noted that on six (6) of six (6) tested calculation of funds to be returned had no documentation to determine if returns were completed timely as the College did not retain the lists of students associated with drawdowns and/or returns. Cause: The College did not have proper procedures in place regarding record retention. Effect or Potential Effect: The deficiencies in the design and operation of the internal controls in this area could result in the institution not returning Federal funds as required by Title IV regulations or returning an incorrect amount. Questioned Costs: None Context: During our testing of return of Title IV funds, it was noted that Fort Scott Community College’s internal controls over posting to student accounts broke down after there was a change in staff. Six (6) of six (6) files tested, the College was unable to produce reports showing what students were included with each drawdown, including returns, from Department of Education, therefore resulting inability to complete the test. Repeat Finding: No Recommendation: Policies and procedures should be written to provide internal control over the documentation used to complete the drawdowns, including returns, from Department of Education. We recommend the College establish a communication and record retention process that allows for the notification of students withdrawing and a control in place that allows the financial aid department to know the student financial aid was returned to Department of Education within the required timeframe. Views of responsible officials and planned corrective action: Management is in agreement and will implement a Corrective Action Plan, see pages 72-75 of the current year audit.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Cash Management

Other Findings in this Audit

  • 389705 2023-002
    Material Weakness
  • 389706 2023-003
    Material Weakness
  • 389707 2023-004
    Material Weakness
  • 389708 2023-002
    Material Weakness
  • 389709 2023-003
    Material Weakness
  • 389710 2023-004
    Material Weakness
  • 389711 2023-002
    Material Weakness
  • 389712 2023-003
    Material Weakness
  • 389713 2023-004
    Material Weakness
  • 389714 2023-002
    Material Weakness
  • 389715 2023-003
    Material Weakness
  • 389716 2023-004
    Material Weakness
  • 389717 2023-002
    Material Weakness
  • 389718 2023-003
    Material Weakness
  • 389719 2023-004
    Material Weakness
  • 389720 2023-002
    Material Weakness
  • 389721 2023-003
    Material Weakness
  • 389722 2023-004
    Material Weakness
  • 389723 2023-005
    Material Weakness
  • 966147 2023-002
    Material Weakness
  • 966148 2023-003
    Material Weakness
  • 966149 2023-004
    Material Weakness
  • 966150 2023-002
    Material Weakness
  • 966151 2023-003
    Material Weakness
  • 966152 2023-004
    Material Weakness
  • 966153 2023-002
    Material Weakness
  • 966154 2023-003
    Material Weakness
  • 966155 2023-004
    Material Weakness
  • 966156 2023-002
    Material Weakness
  • 966157 2023-003
    Material Weakness
  • 966158 2023-004
    Material Weakness
  • 966159 2023-002
    Material Weakness
  • 966160 2023-003
    Material Weakness
  • 966161 2023-004
    Material Weakness
  • 966162 2023-002
    Material Weakness
  • 966163 2023-003
    Material Weakness
  • 966165 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.011 Migrant Education_state Grant Program $1.36M
84.268 Federal Direct Student Loans $1.16M
84.149 Migrant Education_college Assistance Migrant Program $463,434
84.141 Migrant Education_high School Equivalency Program $448,948
21.027 Coronavirus State and Local Fiscal Recovery Funds $400,052
84.042 Trio_student Support Services $267,910
84.007 Federal Supplemental Educational Opportunity Grants $41,465
84.425 Education Stabilization Fund $20,000
84.048 Career and Technical Education -- Basic Grants to States $8,000
84.033 Federal Work-Study Program $3,116
84.063 Federal Pell Grant Program $2,195