Audit 334218

Criteria: Awards must be coordinated among the various programs and with other federal and nonfederal aid (need and non-need based aid) to ensure that total aid is not awarded in excess of the student’s financial need (34 CFR § 668.42 FWS and 34 CFR § 682.301). Per 34 CFR § 685.200, a Direct Subsidized Loan borrower must demonstrate financial need in accordance with Title IV, Part F of the Higher Education Act of 1965. Upon packaging a student’s aid, schools are required to calculate the student’s need based on the expected family contribution, estimated financial assistance, and estimated cost of attendance. Condition/context: A sample of 25 students out of a population of 573 students who received disbursements of student financial assistance federal awards was selected. The financial need was calculated for each student, with the student’s estimated financial assistance also deducted. One student was identified as being over awarded by $16,700. Our sample was not, and was not intended to be, statistically valid. Questioned costs: Less than the questioned cost threshold of $25,000. Cause/Effect: This occurred because of a lack of properly documented control procedures surrounding the recording and review of budget adjustments. The student received multiple adjustments to their cost of attendance and award due to changes in enrollment status. One student was over awarded by $16,700. Repeat finding: No Recommendation: We recommend the University continue to focus on improving internal controls surrounding the calculation and posting of, as well as review of, budget adjustments. We recommend further that the University ensure this process is well documented in a formal policy. Views of responsible officials and planned corrective actions: Management agrees with the finding as presented. Corrective action taken is as follows: Management has completed a review and refinement of steps already in place, specifically addressing the processing of budgets for students who are off-cycle during a semester. Management has drafted a quality control process document to address the deficiency.

Criteria: Awards must be coordinated among the various programs and with other federal and nonfederal aid (need and non-need based aid) to ensure that total aid is not awarded in excess of the student’s financial need (34 CFR § 668.42 FWS and 34 CFR § 682.301). Per 34 CFR § 685.200, a Direct Subsidized Loan borrower must demonstrate financial need in accordance with Title IV, Part F of the Higher Education Act of 1965. Upon packaging a student’s aid, schools are required to calculate the student’s need based on the expected family contribution, estimated financial assistance, and estimated cost of attendance. Condition/context: A sample of 25 students out of a population of 573 students who received disbursements of student financial assistance federal awards was selected. The financial need was calculated for each student, with the student’s estimated financial assistance also deducted. One student was identified as being over awarded by $16,700. Our sample was not, and was not intended to be, statistically valid. Questioned costs: Less than the questioned cost threshold of $25,000. Cause/Effect: This occurred because of a lack of properly documented control procedures surrounding the recording and review of budget adjustments. The student received multiple adjustments to their cost of attendance and award due to changes in enrollment status. One student was over awarded by $16,700. Repeat finding: No Recommendation: We recommend the University continue to focus on improving internal controls surrounding the calculation and posting of, as well as review of, budget adjustments. We recommend further that the University ensure this process is well documented in a formal policy. Views of responsible officials and planned corrective actions: Management agrees with the finding as presented. Corrective action taken is as follows: Management has completed a review and refinement of steps already in place, specifically addressing the processing of budgets for students who are off-cycle during a semester. Management has drafted a quality control process document to address the deficiency.