FINDING 2023-001: INCORRECT PELL GRANTS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL PELL GRANT PROGRAM AND FEDERAL DIRECT LOAN PROGRAM
ALN: 84.063
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Eligibility (E.) Criteria: The amount of a student’s Federal Pell Grant for an academic year is based upon the payment
and disbursement schedules published by the Secretary for each award year (34 CFR 690.62). Condition: We tested thirty-seven files, twenty-one of which were Pell Grant recipients, and one student
received a Pell grant in excess of her allowed amount and one student did not receive the full amount of
her allowed Pell grant. The students were eligible for $5,784, but received $6,164. We consider this
finding to be an instance of non-compliance and is a repeat finding shown in Section IV of this report as
prior year Finding 2022-001. Cause: The condition was caused by using an incorrect number of credits while calculating the Pell. Effect: The result is the student received ineligible Pell monies. Question Costs: $811 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $811 to the Department of Education, credit
$431 to the student's account and increase controls over Pell Grants. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is
included in the Corrective Action Plan.
FINDING 2023-002: OVERAWARDED FEDERAL DIRECT SUBSIDIZED LOAN FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN: 84.268
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Eligibility (E.) Criteria: A third year student can receive up to $5,500 in subsidized loans in one academic year (34 CFR
685.203). Condition: We tested thirty-seven files, thirty-four of which were Federal Direct Loan recipients, and one
student was overawarded a Federal Direct subsidized loan. We consider this finding to be an instance of
non-compliance. Cause: The condition was caused by using an incorrect number of credits while calculating the subsidized. Effect: The result is the student received ineligible loan proceeds. Question Costs: $2,709 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $2,709 to the Department of Education and increase controls over Direct Loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2023-003: LATE REFUND
FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN: 84.268
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: The Department of Education requires that all refunds be made within 45 days of a student’s
withdrawal (34 CFR 668.22, 685.306). Condition: We tested thirteen drop students in our sample and noted one late refund. We consider this finding to be an instance of non-compliance and is a repeat finding shown in Section IV of this report as prior year Finding 2022-003. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result is the Institution retained funds which should have been returned to the Department of Education. Question Costs: $1,478 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over refunds. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2023-004: INCORRECT REFUND CALCULATIONS
FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN: 84.268
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested thirteen drop students and found two incorrect refund calculations. We consider this finding to be a significant deficiency and is a repeat finding shown in Section IV of this report as prior year Finding 2022-002. Cause: The condition was caused by using incorrect amounts in Step 1 of the Return to Title IV refund calculation for one student and by using incorrect charges in Step 5 of the Return to Title IV refund calculation for the other student. Effect: The result is the Institution refunded incorrect amounts to the Department of Education. Question Costs: $352 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $352 to the Department of Education and increase controls over refunds. There is no liablity for the remaining $362, as this was due to overrefunding loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2023-005: INACCURATE ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN: 84.268
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: We tested thirty-seven files and enrollment status effective dates were either incorrectly reported or not reported to the National Student Loan Data System (NSLDS) for ten students. We consider this finding to be a material weakness. Cause: The condition was caused by a breakdown in controls over enrollment reporting. Effect: The result is the students’ enrollment dates were reported to NSLDS inaccurately or were missing. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution update the effective dates in NSLDS and increase controls over enrollment reporting. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2023-001: INCORRECT PELL GRANTS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL PELL GRANT PROGRAM AND FEDERAL DIRECT LOAN PROGRAM
ALN: 84.063
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Eligibility (E.) Criteria: The amount of a student’s Federal Pell Grant for an academic year is based upon the payment
and disbursement schedules published by the Secretary for each award year (34 CFR 690.62). Condition: We tested thirty-seven files, twenty-one of which were Pell Grant recipients, and one student
received a Pell grant in excess of her allowed amount and one student did not receive the full amount of
her allowed Pell grant. The students were eligible for $5,784, but received $6,164. We consider this
finding to be an instance of non-compliance and is a repeat finding shown in Section IV of this report as
prior year Finding 2022-001. Cause: The condition was caused by using an incorrect number of credits while calculating the Pell. Effect: The result is the student received ineligible Pell monies. Question Costs: $811 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $811 to the Department of Education, credit
$431 to the student's account and increase controls over Pell Grants. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is
included in the Corrective Action Plan.
FINDING 2023-002: OVERAWARDED FEDERAL DIRECT SUBSIDIZED LOAN FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN: 84.268
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Eligibility (E.) Criteria: A third year student can receive up to $5,500 in subsidized loans in one academic year (34 CFR
685.203). Condition: We tested thirty-seven files, thirty-four of which were Federal Direct Loan recipients, and one
student was overawarded a Federal Direct subsidized loan. We consider this finding to be an instance of
non-compliance. Cause: The condition was caused by using an incorrect number of credits while calculating the subsidized. Effect: The result is the student received ineligible loan proceeds. Question Costs: $2,709 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $2,709 to the Department of Education and increase controls over Direct Loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2023-003: LATE REFUND
FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN: 84.268
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: The Department of Education requires that all refunds be made within 45 days of a student’s
withdrawal (34 CFR 668.22, 685.306). Condition: We tested thirteen drop students in our sample and noted one late refund. We consider this finding to be an instance of non-compliance and is a repeat finding shown in Section IV of this report as prior year Finding 2022-003. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result is the Institution retained funds which should have been returned to the Department of Education. Question Costs: $1,478 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over refunds. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2023-004: INCORRECT REFUND CALCULATIONS
FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN: 84.268
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested thirteen drop students and found two incorrect refund calculations. We consider this finding to be a significant deficiency and is a repeat finding shown in Section IV of this report as prior year Finding 2022-002. Cause: The condition was caused by using incorrect amounts in Step 1 of the Return to Title IV refund calculation for one student and by using incorrect charges in Step 5 of the Return to Title IV refund calculation for the other student. Effect: The result is the Institution refunded incorrect amounts to the Department of Education. Question Costs: $352 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $352 to the Department of Education and increase controls over refunds. There is no liablity for the remaining $362, as this was due to overrefunding loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2023-005: INACCURATE ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN: 84.268
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: We tested thirty-seven files and enrollment status effective dates were either incorrectly reported or not reported to the National Student Loan Data System (NSLDS) for ten students. We consider this finding to be a material weakness. Cause: The condition was caused by a breakdown in controls over enrollment reporting. Effect: The result is the students’ enrollment dates were reported to NSLDS inaccurately or were missing. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution update the effective dates in NSLDS and increase controls over enrollment reporting. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.