Finding Text
Finding 2021-002 - Significant Deficiency - Reporting
Federal Assistance Listing No. 84.063
U.S. Department Of Education
Student Financial Aid Cluster
Criteria: According to the 2020-2021 Federal Student Aid Handbook, Volume 3, Chapter 1, an institution must submit Pell disbursement information to Common Origination Disbursement (COD) no later than 15 calendar days after making a disbursement or adjustment.
Condition: In our nonstatistical sample of 40 students, it was noted that one student’s Pell disbursement dates were not updated within COD within 15 days of the dates of disbursement for the students Fall 2020 and Spring 2021 Pell disbursements.
Context: During our audit procedures, we noted that the student in question received Pell disbursements on September 11, 2020, January 14, 2021, and May 17, 2021 (Summer Pell). The “Date Processed” noted in COD for each disbursement was May 24, 2021 which indicated that the University failed to update the student’s disbursement records in COD until the student’s Summer Pell disbursement was made.
Effect: As a result of this finding, the Department of ED did not have accurate information on this student’s awards until the updated date was processed. Additionally, the University likely had an unexplained reconciling item on its monthly reconciliation between institutional records and COD.
Questioned Costs: There were no questioned costs to report as the finding relates only to reporting of a properly awarded amount.
Cause: The University did not have proper processes and related controls in place to complete the required updates to COD for the Pell records for this student’s Pell disbursements.
Recommendation: The Student Financial Aid department should review and consider revisions to its processes and related controls in place to ensure completion of updates to COD within the 15 day timeframe from the date of disbursement.
Views Of Responsible Officials/Corrective Action Plan (Unaudited): Management concurs with the finding and notes that procedures have been put in place to ensure that the timing for reporting COD disbursements is completed timely.
Completion Date: October 2021
Contact Person: Tony Lubbers, Student Financial Aid Director