Audit 352114

FINDING 2024-001: UNDERAWARDED FEDERAL DIRECT SUBSIDIZED LOANS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: SFA CLUSTER ALN: 84.268 FEDERAL AWARD YEAR: 2022-2023, 2023-2024 Compliance Requirement: Eligibility (E.) Criteria: A second year student can receive up to $4,500 in subsidized loans in one academic year (34 CFR 685.203). Condition: We tested forty files, thirty-six of which were Federal Direct Loan recipients, and two students did not receive the full amount of their Federal Direct Subsidized Loans. We consider this finding to be a instance of noncompliance. Cause: The condition was caused by using an incorrect grade level for one student and by not maximizing full subsidized loan eligibility prior to packaging unsubsidized loans for the other student. Effect or Potential Effect: The result is students received unsubsidized loans prior to receiving full subsidized loans. Statistical sampling was not used when making sample selections. Questioned Costs : $0 Recommendation: We recommend the College reclassify $2,124 from unsubsidized to subsidized and increase controls over packaging direct loans. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2024-002: UNTIMELY PAID CREDIT BALANCE FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: SFA CLUSTER ALN: 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions - Disbursements (N.) Criteria: An institution must pay credit balances to students within fourteen days of the creation of such credit or within fourteen days of the date the institution performs the Return calculation for withdrawn students (34 CFR 668.164 and 668.165). Condition: We tested forty files, twenty-three of which had credit balances, and one credit balance was not paid in a timely manner. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an oversight in the financial aid department. Effect or Potential Effect: As a result, the Institution was holding funds that needed to be returned to the student. Statistical sampling was not used when making sample selections. Questioned Costs : $0 Recommendation: We recommend the College increase controls over credit balances. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2024-001: UNDERAWARDED FEDERAL DIRECT SUBSIDIZED LOANS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: SFA CLUSTER ALN: 84.268 FEDERAL AWARD YEAR: 2022-2023, 2023-2024 Compliance Requirement: Eligibility (E.) Criteria: A second year student can receive up to $4,500 in subsidized loans in one academic year (34 CFR 685.203). Condition: We tested forty files, thirty-six of which were Federal Direct Loan recipients, and two students did not receive the full amount of their Federal Direct Subsidized Loans. We consider this finding to be a instance of noncompliance. Cause: The condition was caused by using an incorrect grade level for one student and by not maximizing full subsidized loan eligibility prior to packaging unsubsidized loans for the other student. Effect or Potential Effect: The result is students received unsubsidized loans prior to receiving full subsidized loans. Statistical sampling was not used when making sample selections. Questioned Costs : $0 Recommendation: We recommend the College reclassify $2,124 from unsubsidized to subsidized and increase controls over packaging direct loans. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2024-002: UNTIMELY PAID CREDIT BALANCE FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: SFA CLUSTER ALN: 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions - Disbursements (N.) Criteria: An institution must pay credit balances to students within fourteen days of the creation of such credit or within fourteen days of the date the institution performs the Return calculation for withdrawn students (34 CFR 668.164 and 668.165). Condition: We tested forty files, twenty-three of which had credit balances, and one credit balance was not paid in a timely manner. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an oversight in the financial aid department. Effect or Potential Effect: As a result, the Institution was holding funds that needed to be returned to the student. Statistical sampling was not used when making sample selections. Questioned Costs : $0 Recommendation: We recommend the College increase controls over credit balances. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.