Single Audit Report Fiscal Year Ended June 30, 2012 - State ...

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Recommendation:The Technical College should establish procedures to ensure that campus-based funds are awardedbased on the allocation, or that if unused, the unexpended funds are reported to the U. S. Department ofEducation.Finding Control Number: FA-826-12-02SPECIAL TESTS AND PROVISIONSFailure to Properly Comply with the Verification ProcessU. S. Department of EducationStudent Financial Aid Cluster ProgramCondition:Criteria:Questioned Cost:Information:Cause:Effect:Recommendation:The Student Financial Assistance Office failed to meet student verification and documentationrequirements.Provisions included in 34 CFR 668 provide the compliance requirements for the verification processthat the Technical College should follow for students who receive financial aid and identifies theacceptable documentation. The OMB Circular A-133 Compliance Supplement requiresimplementation of internal controls over Federal awards.Questioned costs of $3,701.00 were identified in the sample of student verification, which whenprojected over the entire population, resulted in a projected misstatement of $642,728.98.Our sample of 25 students selected for verification revealed one student verification for which sampledocumentation was not maintained by the Technical College.The Student Financial Aid Office did not adequately follow the Federal requirements for verification,and internal controls are not in place to prevent or detect noncompliance.Without properly verifying the information in the selected student files, the Technical College placesitself in a position to award students incorrectly.The Student Financial Aid Office must ensure that verification and documentation requirements aremet, and internal controls are designed as required by OMB Circular A-133.Finding Control Number: FA-826-12-03SPECIAL TESTS AND PROVISIONSDeficiencies Over the Title IV Refunds ProcessU. S. Department of EducationStudent Financial Aid Cluster ProgramCondition:Criteria:Information:The Student Financial Assistance Office (SFA) failed to properly perform the refund process andensure that unearned Title IV funds were returned in a timely manner.Provisions included in the 34 CFR 668 provide general provisions for administering Student FinancialAssistance programs. 34 CFR 668.22(j)(1) states that "An institution must return the amount of TitleIV funds...as soon as possible but no later than 45 days after the date of the institution's determinationthat the student withdrew."Two students were identified in a sample of 25 students that withdrew from the Technical College thatreceived Federal awards during the year whose refunds were not processed properly. Our examinationrevealed the following deficiencies:1. One student withdrew September 8, 2011, and the refund calculation was not completed until June13, 2012. This student's refund was calculated correctly as $332.35; however, the refund was notprocessed in a timely manner.125