Hinds Community College DistrictHigher Education

Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, ALN 84.007; Federal Work-Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; FederalDirect Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2024-2025 Type of Finding – Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Verification [34 CFR 688.51 through 668.61]. Condition – The District did not properly update student verification status in common origination and disbursement (COD). Cause – The District’s internal controls related to verification did not ensure verification status was properly updated in COD. Effect or Potential Effect – Student financial aid could be disbursed to a student who was not eligible. Questioned Costs – None. Context – Out of a population of 47 students who were selected for verification during the 2024-2025 award year, a sample of 5 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 5 students tested, 1 student’s verification status was not correctly recorded in COD. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The District should update internal controls to ensure verification status is updated correctly in COD. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.

Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, ALN 84.007; Federal Work- Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; Federal Direct Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2024-2025 Type of Finding – Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting (34 CFR 690.93(b)(2); 34 CFR 682.610; 34 CFR 685.309. Institutions are required to report enrollment information. Condition – The District did not report timely and accurate student status information to the National Student Loan Data System (NSLDS). Cause – The District’s internal controls related to NSLDS reporting did not ensure status changes were reported timely and accurately. Effect or Potential Effect – Incorrect enrollment information was reported to NSLDS, and some of the information was not reported timely, leading to being not in compliance with requirements noted above. Questioned Costs – None. Context – Out of a population of 5,036 students who received Pell Grants or Federal Direct Loans during the 2024-2025 award year and also had an increase or decrease in enrollment, graduated, or withdrew, a sample of 40 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 40 students tested, 16 students’ enrollment information was incorrectly reported to NSLDS or not reported timely. Identification as a Repeat Finding, if Applicable – Yes Recommendation – The District should update internal controls related to NSLDS reporting to ensure changes in students’ enrollment status are reported in a timely and accurate manner on a recurring basis. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.

Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, ALN 84.007; Federal Work- Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; Federal Direct Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2024-2025 Type of Finding – Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Return of Title IV Funds [34 CFR 668.22(a)(1) through (a)(5)]. Condition – The District did not properly calculate the total amount disbursed or to be isbursed due to an incorrect term date, which led to incorrect calculations of funds to be returned. Additionally, the District did not return funds in the required 45 day window. Cause – The District’s internal controls did not ensure accurate information was inputted into the calculation of returns and did not ensure return was made within the required timeframe. Additionally, no detective controls for supervisory review and approval of the calculations were performed to detect errors. Effect or Potential Effect – Incorrect amounts were returned to the Department of Education or disbursed to students. Also, returns were not made within the 45 day required timeline. Questioned Costs – $2,880 – ALN 84.063 Context – Out of a population of 385 students who withdrew during the 2024-2025 award year, a sample of 40 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 40 students tested, 4 students’ calculations were incorrect due to the use of incorrect term dates by the institution and 7 students were returned after the 45 day requirement. Additionally, $2,880 calculated to be returned to the Department of Education was not returned. Identification as a Repeat Finding, if Applicable – Yes Recommendation – The District should ensure its process and internal controls are updated to ensure total days in the semester are calculated correctly and disbursements are made timely. Additionally, the related calculations should be subject to review and approval as a best practice. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.

Student Financial Assistance Cluster Federal Supplemental Education Opportunity Grants, ALN 84.007; Federal Work-Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; Federal Direct Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2023-2024 Type of Finding – Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Using a Servicer or Financial Institution to Deliver Title IV Credit Balances to a Card or Other Access Device [34 CFR 688.164(e) and (f)]. Condition – The District did not provide a URL for the contract to the Department of Education for publication in the Cash Management Contracts Database, and the District did not disclose conspicuously on its website the contract establishing the Tier One arrangement. Cause – The District’s internal controls related to compliance with Title IV requirements on use of a servicer did not ensure the required information was reported to the Department of Education and did not disclose contract on its website. Effect or Potential Effect – The District was not in compliance with the requirements noted above, and information required to be published or disclosed was not. Questioned Costs – None. Context – The District did not provide the URL or the contract for publication in the cash management contracts database, nor the link to the disclosure of contract on its website. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The District should update internal controls to ensure requirements noted above for using a servicer are followed and the servicers are properly monitored. Additionally, the District should routinely review the related compliance requirements to ensure future compliance. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.

Student Financial Assistance Cluster Federal Supplemental Education Opportunity Grants, ALN 84.007; Federal Work-Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; Federal Direct Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2023-2024 Type of Finding – Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting (34 CFR 690.93(b)(2); 34 CFR 682.610; 34 CFR 685.309. Institutions are required to report enrollment information. Condition – The District did not report timely and accurate student status information to the National Student Loan Data System (NSLDS). Cause – The District’s internal controls related to NSLDS reporting did not ensure status changes were reported timely and accurately. Effect or Potential Effect – Incorrect enrollment information was reported to NSLDS, and some of the information was not reported timely. Questioned Costs – None. Context – Out of a population of 3,106 students who received Pell Grants or Federal Direct Loans during the 2023-2024 award year and also had an increase or decrease in enrollment, graduated, or withdrew, a sample of 40 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 40 students tested, 37 students’ enrollment information was incorrectly reported to NSLDS or not reported timely. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The District should update internal controls related to NSLDS reporting to ensure changes in students’ enrollment status are reported in a timely and accurate manner on a recurring basis. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.

Student Financial Assistance Cluster Federal Supplemental Education Opportunity Grants, ALN 84.007; Federal Work-Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; Federal Direct Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2023-2024 Type of Finding – Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Return of Title IV Funds [34 CFR 668.22(a)(1) through (a)(5)]. Condition – The District did not properly calculate the total amount disbursed or to be disbursed, which led to incorrect calculations of funds to be returned. Additionally, the District did not provide evidence of date of determination used in calculation. Cause – The District’s internal controls did not ensure accurate information was inputted into the calculation of returns. Additionally, no detective controls for supervisory review and approval of the calculations were performed to detect errors. Effect or Potential Effect – Incorrect amounts were returned to the Department of Education or disbursed to student. Questioned Costs – $5,946 – ALN 84.063; $3,557 – ALN 84.268. Total projected questioned costs were $36,916. Context – Out of a population of 491 students who withdrew during the 2023-2024 award year, a sample of 40 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 40 students tested, 14 students’ calculations were incorrect. Additionally, $9,503 calculated to be returned to the Department of Education was not returned. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The District should ensure its process and internal controls are updated to ensure total days in the semester are calculated correctly and disbursements are made timely. Additionally, the related calculations should be subject to review and approval as a best practice. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.

TRIO Cluster, Assistance Listing Numbers 84.042, 84.044 and 84.047 U.S. Department of Education Program Year 2020-2021 Criteria or specific requirement ? Eligibility ? 34 CFR Sections 645.3 and 645.6. Proper documentation should be retained to support eligibility. Condition ? The District did not retain sufficient documentation to support eligibility determinations for students. Questioned costs ? Assistance Listing Number 84.047 - $1,160 ? Questioned costs include sampled stipends paid to students for which no supporting eligibility document was provided Context ? Out of a population of 2,331 stipends paid to students during program year 2020-2021, a sample of 40 stipends were selected for underlying eligibility testing. Our sampling method was not intended to be statistically valid. There was no underlying eligibility documentation provided by the District for 8 of the 40 selected stipends. Effect ? The District was not able to support the eligibility determination of all student recipients, and, therefore, potentially provided stipends to ineligible student recipients. Cause ? The District?s processes did not ensure sufficient documentation was retained to support eligibility determinations of student recipients. Identification as a repeat finding ? N/A Recommendation ? The District should expand its processes to ensure eligibility documents are retained to support the eligibility determinations. Views of responsible officials and planned corrective actions - In address of the TRIO student documentation errors, Title III and Sponsored Grants Department and Assistant Director for Grant Initiatives supervising TRIO Project Directors will be retrained on the process of student documentation for each program activity, campus visit, cultural excursions, and visitation. Training and supervision will be continued with weekly and monthly meetings for verification of steps followed. The District has Blumen Software that is purchased by each TRIO Upward Bound Program. Requirements will be communicated, and training will be provided on the software to house TRIO projects and track services.

Material Weakness Program: U.S. Department of Education Student Financial Assistance Programs Cluster CFDA #84.007, 84.033, 84.063 & 84.268 Compliance requirement: Special test and provisions - Gramm - Leach - Bliley Act - Student information security. Finding 2020-001 Criteria: The District must protect student financial aid information, with particular attention to information provided to institutions by the District or otherwise obtained in support of the administration of federal student financial aid programs. Condition: Controls are not in place to adequately protect the student?s information. Context: The District is in the process of fully evaluating these issues and assessing the related risks. Questioned Costs: None. Cause: Unknown. Effect: Until these risks are adequately assessed and procedures are implemented to address these issues, the District is potentially at risk of providing inadequate and/or incomplete protection of student financial aid information. Identification of a Repeat Finding: Yes. Whether Sampling was Statically Valid: No. Recommendation: The risk assessment process should be completed and controls put in place to adequately address identified risk so that student financial aid information is adequately protected.

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