Audit 356516

FY End
2024-06-30
Total Expended
$51.55M
Findings
22
Programs
33
Organization: Claflin University (SC)
Year: 2024 Accepted: 2025-05-19

Organization Exclusion Status:

Checking exclusion status...

Findings

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $13.76M Yes 0
84.268 Federal Direct Student Loans $13.52M Yes 3
84.063 Federal Pell Grant Program $8.22M Yes 2
81.137 Minority Economic Impact $3.84M Yes 0
11.028 Connecting Minority Communities Pilot Program $1.63M Yes 0
84.382 Strengthening Minority-Serving Institutions $755,487 Yes 0
84.031 Higher Education Institutional Aid $553,831 - 0
81.089 Fossil Energy Research and Development $546,113 Yes 0
84.047 Trio Upward Bound $539,146 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $379,711 Yes 2
84.042 Trio Student Support Services $351,846 Yes 0
84.033 Federal Work-Study Program $260,349 Yes 2
84.120 Minority Science and Engineering Improvement $177,416 - 0
84.184 School Safely National Activities $147,165 - 0
47.076 Stem Education (formerly Education and Human Resources) $65,385 Yes 0
93.859 Biomedical Research and Research Training $64,390 Yes 0
84.302 Next Generation Black Stem Teachers (ngbst) $54,024 - 0
47.083 Integrative Activities $43,201 Yes 0
94.013 Americorps Volunteers in Service to America 94.013 $37,903 - 0
11.303 Economic Development Technical Assistance $29,397 - 0
84.116 Fund for the Improvement of Postsecondary Education $18,653 - 0
47.075 Social, Behavioral, and Economic Sciences $15,485 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $13,192 Yes 2
47.084 Nsf Technology, Innovation, and Partnerships $12,825 Yes 0
10.351 Rural Business Development Grant $10,033 - 0
15.904 Historic Preservation Fund Grants-in-Aid $9,200 - 0
47.074 Biological Sciences $8,767 Yes 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $7,916 Yes 0
84.220 Centers for International Business Education $7,840 - 0
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Program $6,439 Yes 0
81.113 Defense Nuclear Nonproliferation Research $3,307 Yes 0
47.041 Engineering $1,800 Yes 0
84.302 Summer 2023 Mgbst Research $1,397 - 0

Contacts

Name Title Type
HKKLENWBDNK1 Ashley Schofield Auditee
8035355264 Patricia Pryor Auditor
No contacts on file

Notes to SEFA

Title: Note 1—Basis of presentation Accounting Policies: Basis of Accounting – Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance; wherein certain types of expenditures are not allowable. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate – The University has elected not to use the 10% de minimum indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Claflin University (the “University”) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.
Title: Note 3—Federal Direct Student Loans Accounting Policies: Basis of Accounting – Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance; wherein certain types of expenditures are not allowable. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate – The University has elected not to use the 10% de minimum indirect cost rate as allowed under the Uniform Guidance. The Federal Direct Student Loan program provides loan capital directly from the federal government (rather than through private lenders) to vocational, undergraduate, and graduate students and their parents. The loans are made directly from the federal government; therefore, there is no loan balance recorded at the University level.
Title: Note 4—U.S. Department of Agriculture Community Facilities Loans Accounting Policies: Basis of Accounting – Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance; wherein certain types of expenditures are not allowable. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate – The University has elected not to use the 10% de minimum indirect cost rate as allowed under the Uniform Guidance. The federal financial assistance from the U.S. Department of Agriculture (“USDA”), Community Facilities Loans and Grants program, is in the form of interest bearing loans to be repaid in accordance with the terms of the agreements. Because of the continuing compliance requirements, the total outstanding balances at the beginning of the fiscal year plus any expenditures on new loans are reported on the Schedule. See Notes to SEFA for Chart/Table.

Finding Details

Finding 2024-003-Student Financial Aid Cluster, ALN#84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Gramm-Leach-Bliley Act – Student Information Security Criteria: The University is required to have a written security program that address the seven elements as described in 16 CFR 314.4 (b). Condition: The University does not have a written security program that address the seven elements as described in 16 CFR 314.4 (b) as of June 30, 2024. Cause: Although the University meets some of the seven elements as described in 16 CFR 314.4 (b), the University has yet to establish a formalized written policy. Effect: The University could have risks associated with the safeguarding of sensitive information it is not aware of or does not protect against. Questioned Costs: None Context: Not all elements as described in 16 CFR 314.4 (b) have been met, and the University does not have formal written documentation of its program. Recommendation: The University should implement a written security program that addresses the required elements as described in 16 CFR 314.4 (b). Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003-Student Financial Aid Cluster, ALN#84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Gramm-Leach-Bliley Act – Student Information Security Criteria: The University is required to have a written security program that address the seven elements as described in 16 CFR 314.4 (b). Condition: The University does not have a written security program that address the seven elements as described in 16 CFR 314.4 (b) as of June 30, 2024. Cause: Although the University meets some of the seven elements as described in 16 CFR 314.4 (b), the University has yet to establish a formalized written policy. Effect: The University could have risks associated with the safeguarding of sensitive information it is not aware of or does not protect against. Questioned Costs: None Context: Not all elements as described in 16 CFR 314.4 (b) have been met, and the University does not have formal written documentation of its program. Recommendation: The University should implement a written security program that addresses the required elements as described in 16 CFR 314.4 (b). Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003-Student Financial Aid Cluster, ALN#84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Gramm-Leach-Bliley Act – Student Information Security Criteria: The University is required to have a written security program that address the seven elements as described in 16 CFR 314.4 (b). Condition: The University does not have a written security program that address the seven elements as described in 16 CFR 314.4 (b) as of June 30, 2024. Cause: Although the University meets some of the seven elements as described in 16 CFR 314.4 (b), the University has yet to establish a formalized written policy. Effect: The University could have risks associated with the safeguarding of sensitive information it is not aware of or does not protect against. Questioned Costs: None Context: Not all elements as described in 16 CFR 314.4 (b) have been met, and the University does not have formal written documentation of its program. Recommendation: The University should implement a written security program that addresses the required elements as described in 16 CFR 314.4 (b). Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003-Student Financial Aid Cluster, ALN#84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Gramm-Leach-Bliley Act – Student Information Security Criteria: The University is required to have a written security program that address the seven elements as described in 16 CFR 314.4 (b). Condition: The University does not have a written security program that address the seven elements as described in 16 CFR 314.4 (b) as of June 30, 2024. Cause: Although the University meets some of the seven elements as described in 16 CFR 314.4 (b), the University has yet to establish a formalized written policy. Effect: The University could have risks associated with the safeguarding of sensitive information it is not aware of or does not protect against. Questioned Costs: None Context: Not all elements as described in 16 CFR 314.4 (b) have been met, and the University does not have formal written documentation of its program. Recommendation: The University should implement a written security program that addresses the required elements as described in 16 CFR 314.4 (b). Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-004-Student Financial Aid Cluster, ALN# 84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Return of Title IV Funds Criteria: The University’s policy is that computations of refunds of Title IV Funds and withdrawal statements are to be reviewed by someone other than the preparer prior to funds being returned/disbursed. Condition: The refund of one of the two students selected for testing was incorrectly computed and was disbursed after 45 days from the withdrawal date. Cause: The University did not have someone independent of the preparer to review withdrawal statements and R2T4s prior to refunds being issued due to staffing turnover and unfilled positions in the student financial aid department during the year ended June 30, 2024. Effect: Refunds and disbursements to withdrawn students could be computed incorrectly and not within the required time frame. Questioned Costs: None Context: Two out of fourteen withdrawn students for the year ended June 30, 2024 were selected for testing. One of the two selected student’s refund was incorrectly computed and refunded after the required time frame. Recommendation: The University should have return of Title IV funds computations reviewed by someone independent of the person who does the initial computation. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-004-Student Financial Aid Cluster, ALN# 84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Return of Title IV Funds Criteria: The University’s policy is that computations of refunds of Title IV Funds and withdrawal statements are to be reviewed by someone other than the preparer prior to funds being returned/disbursed. Condition: The refund of one of the two students selected for testing was incorrectly computed and was disbursed after 45 days from the withdrawal date. Cause: The University did not have someone independent of the preparer to review withdrawal statements and R2T4s prior to refunds being issued due to staffing turnover and unfilled positions in the student financial aid department during the year ended June 30, 2024. Effect: Refunds and disbursements to withdrawn students could be computed incorrectly and not within the required time frame. Questioned Costs: None Context: Two out of fourteen withdrawn students for the year ended June 30, 2024 were selected for testing. One of the two selected student’s refund was incorrectly computed and refunded after the required time frame. Recommendation: The University should have return of Title IV funds computations reviewed by someone independent of the person who does the initial computation. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-004-Student Financial Aid Cluster, ALN# 84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Return of Title IV Funds Criteria: The University’s policy is that computations of refunds of Title IV Funds and withdrawal statements are to be reviewed by someone other than the preparer prior to funds being returned/disbursed. Condition: The refund of one of the two students selected for testing was incorrectly computed and was disbursed after 45 days from the withdrawal date. Cause: The University did not have someone independent of the preparer to review withdrawal statements and R2T4s prior to refunds being issued due to staffing turnover and unfilled positions in the student financial aid department during the year ended June 30, 2024. Effect: Refunds and disbursements to withdrawn students could be computed incorrectly and not within the required time frame. Questioned Costs: None Context: Two out of fourteen withdrawn students for the year ended June 30, 2024 were selected for testing. One of the two selected student’s refund was incorrectly computed and refunded after the required time frame. Recommendation: The University should have return of Title IV funds computations reviewed by someone independent of the person who does the initial computation. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-004-Student Financial Aid Cluster, ALN# 84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Return of Title IV Funds Criteria: The University’s policy is that computations of refunds of Title IV Funds and withdrawal statements are to be reviewed by someone other than the preparer prior to funds being returned/disbursed. Condition: The refund of one of the two students selected for testing was incorrectly computed and was disbursed after 45 days from the withdrawal date. Cause: The University did not have someone independent of the preparer to review withdrawal statements and R2T4s prior to refunds being issued due to staffing turnover and unfilled positions in the student financial aid department during the year ended June 30, 2024. Effect: Refunds and disbursements to withdrawn students could be computed incorrectly and not within the required time frame. Questioned Costs: None Context: Two out of fourteen withdrawn students for the year ended June 30, 2024 were selected for testing. One of the two selected student’s refund was incorrectly computed and refunded after the required time frame. Recommendation: The University should have return of Title IV funds computations reviewed by someone independent of the person who does the initial computation. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-005-Student Financial Aid Cluster, ALN# 84.268 Compliance Requirement: Eligibility under the Federal Direct Student Loans Program Criteria: 34 CFR 685.203(d) and (e) specifies the aggregate loan limits for Direct Subsidized Loans and Direct Unsubsidized Loans. Condition: Students selected were disbursed loans in excess of the aggregate loan limits. Cause: Clerical error made by the Student Financial Aid Department. Effect: The University is not in compliance with aggregate loan limits of the federal direct student loans program. Questioned Costs: $11,495; on February 24, 2025 the University made adjustments to the related student’s account and reimbursed the over award to the Department of Education. Context: Three out of twenty-five students selected for testing were disbursed federal direct student loans in excess of aggregate limits. Recommendation: The University should review its process and policies relating to awarding federal direct student loan funds and implement procedures to prevent the over awarding of federal direct student loans in excess of all loan limits under the Federal Direct Student Loans program. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003-Student Financial Aid Cluster, ALN#84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Gramm-Leach-Bliley Act – Student Information Security Criteria: The University is required to have a written security program that address the seven elements as described in 16 CFR 314.4 (b). Condition: The University does not have a written security program that address the seven elements as described in 16 CFR 314.4 (b) as of June 30, 2024. Cause: Although the University meets some of the seven elements as described in 16 CFR 314.4 (b), the University has yet to establish a formalized written policy. Effect: The University could have risks associated with the safeguarding of sensitive information it is not aware of or does not protect against. Questioned Costs: None Context: Not all elements as described in 16 CFR 314.4 (b) have been met, and the University does not have formal written documentation of its program. Recommendation: The University should implement a written security program that addresses the required elements as described in 16 CFR 314.4 (b). Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-004-Student Financial Aid Cluster, ALN# 84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Return of Title IV Funds Criteria: The University’s policy is that computations of refunds of Title IV Funds and withdrawal statements are to be reviewed by someone other than the preparer prior to funds being returned/disbursed. Condition: The refund of one of the two students selected for testing was incorrectly computed and was disbursed after 45 days from the withdrawal date. Cause: The University did not have someone independent of the preparer to review withdrawal statements and R2T4s prior to refunds being issued due to staffing turnover and unfilled positions in the student financial aid department during the year ended June 30, 2024. Effect: Refunds and disbursements to withdrawn students could be computed incorrectly and not within the required time frame. Questioned Costs: None Context: Two out of fourteen withdrawn students for the year ended June 30, 2024 were selected for testing. One of the two selected student’s refund was incorrectly computed and refunded after the required time frame. Recommendation: The University should have return of Title IV funds computations reviewed by someone independent of the person who does the initial computation. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003-Student Financial Aid Cluster, ALN#84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Gramm-Leach-Bliley Act – Student Information Security Criteria: The University is required to have a written security program that address the seven elements as described in 16 CFR 314.4 (b). Condition: The University does not have a written security program that address the seven elements as described in 16 CFR 314.4 (b) as of June 30, 2024. Cause: Although the University meets some of the seven elements as described in 16 CFR 314.4 (b), the University has yet to establish a formalized written policy. Effect: The University could have risks associated with the safeguarding of sensitive information it is not aware of or does not protect against. Questioned Costs: None Context: Not all elements as described in 16 CFR 314.4 (b) have been met, and the University does not have formal written documentation of its program. Recommendation: The University should implement a written security program that addresses the required elements as described in 16 CFR 314.4 (b). Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003-Student Financial Aid Cluster, ALN#84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Gramm-Leach-Bliley Act – Student Information Security Criteria: The University is required to have a written security program that address the seven elements as described in 16 CFR 314.4 (b). Condition: The University does not have a written security program that address the seven elements as described in 16 CFR 314.4 (b) as of June 30, 2024. Cause: Although the University meets some of the seven elements as described in 16 CFR 314.4 (b), the University has yet to establish a formalized written policy. Effect: The University could have risks associated with the safeguarding of sensitive information it is not aware of or does not protect against. Questioned Costs: None Context: Not all elements as described in 16 CFR 314.4 (b) have been met, and the University does not have formal written documentation of its program. Recommendation: The University should implement a written security program that addresses the required elements as described in 16 CFR 314.4 (b). Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003-Student Financial Aid Cluster, ALN#84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Gramm-Leach-Bliley Act – Student Information Security Criteria: The University is required to have a written security program that address the seven elements as described in 16 CFR 314.4 (b). Condition: The University does not have a written security program that address the seven elements as described in 16 CFR 314.4 (b) as of June 30, 2024. Cause: Although the University meets some of the seven elements as described in 16 CFR 314.4 (b), the University has yet to establish a formalized written policy. Effect: The University could have risks associated with the safeguarding of sensitive information it is not aware of or does not protect against. Questioned Costs: None Context: Not all elements as described in 16 CFR 314.4 (b) have been met, and the University does not have formal written documentation of its program. Recommendation: The University should implement a written security program that addresses the required elements as described in 16 CFR 314.4 (b). Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003-Student Financial Aid Cluster, ALN#84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Gramm-Leach-Bliley Act – Student Information Security Criteria: The University is required to have a written security program that address the seven elements as described in 16 CFR 314.4 (b). Condition: The University does not have a written security program that address the seven elements as described in 16 CFR 314.4 (b) as of June 30, 2024. Cause: Although the University meets some of the seven elements as described in 16 CFR 314.4 (b), the University has yet to establish a formalized written policy. Effect: The University could have risks associated with the safeguarding of sensitive information it is not aware of or does not protect against. Questioned Costs: None Context: Not all elements as described in 16 CFR 314.4 (b) have been met, and the University does not have formal written documentation of its program. Recommendation: The University should implement a written security program that addresses the required elements as described in 16 CFR 314.4 (b). Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-004-Student Financial Aid Cluster, ALN# 84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Return of Title IV Funds Criteria: The University’s policy is that computations of refunds of Title IV Funds and withdrawal statements are to be reviewed by someone other than the preparer prior to funds being returned/disbursed. Condition: The refund of one of the two students selected for testing was incorrectly computed and was disbursed after 45 days from the withdrawal date. Cause: The University did not have someone independent of the preparer to review withdrawal statements and R2T4s prior to refunds being issued due to staffing turnover and unfilled positions in the student financial aid department during the year ended June 30, 2024. Effect: Refunds and disbursements to withdrawn students could be computed incorrectly and not within the required time frame. Questioned Costs: None Context: Two out of fourteen withdrawn students for the year ended June 30, 2024 were selected for testing. One of the two selected student’s refund was incorrectly computed and refunded after the required time frame. Recommendation: The University should have return of Title IV funds computations reviewed by someone independent of the person who does the initial computation. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-004-Student Financial Aid Cluster, ALN# 84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Return of Title IV Funds Criteria: The University’s policy is that computations of refunds of Title IV Funds and withdrawal statements are to be reviewed by someone other than the preparer prior to funds being returned/disbursed. Condition: The refund of one of the two students selected for testing was incorrectly computed and was disbursed after 45 days from the withdrawal date. Cause: The University did not have someone independent of the preparer to review withdrawal statements and R2T4s prior to refunds being issued due to staffing turnover and unfilled positions in the student financial aid department during the year ended June 30, 2024. Effect: Refunds and disbursements to withdrawn students could be computed incorrectly and not within the required time frame. Questioned Costs: None Context: Two out of fourteen withdrawn students for the year ended June 30, 2024 were selected for testing. One of the two selected student’s refund was incorrectly computed and refunded after the required time frame. Recommendation: The University should have return of Title IV funds computations reviewed by someone independent of the person who does the initial computation. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-004-Student Financial Aid Cluster, ALN# 84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Return of Title IV Funds Criteria: The University’s policy is that computations of refunds of Title IV Funds and withdrawal statements are to be reviewed by someone other than the preparer prior to funds being returned/disbursed. Condition: The refund of one of the two students selected for testing was incorrectly computed and was disbursed after 45 days from the withdrawal date. Cause: The University did not have someone independent of the preparer to review withdrawal statements and R2T4s prior to refunds being issued due to staffing turnover and unfilled positions in the student financial aid department during the year ended June 30, 2024. Effect: Refunds and disbursements to withdrawn students could be computed incorrectly and not within the required time frame. Questioned Costs: None Context: Two out of fourteen withdrawn students for the year ended June 30, 2024 were selected for testing. One of the two selected student’s refund was incorrectly computed and refunded after the required time frame. Recommendation: The University should have return of Title IV funds computations reviewed by someone independent of the person who does the initial computation. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-004-Student Financial Aid Cluster, ALN# 84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Return of Title IV Funds Criteria: The University’s policy is that computations of refunds of Title IV Funds and withdrawal statements are to be reviewed by someone other than the preparer prior to funds being returned/disbursed. Condition: The refund of one of the two students selected for testing was incorrectly computed and was disbursed after 45 days from the withdrawal date. Cause: The University did not have someone independent of the preparer to review withdrawal statements and R2T4s prior to refunds being issued due to staffing turnover and unfilled positions in the student financial aid department during the year ended June 30, 2024. Effect: Refunds and disbursements to withdrawn students could be computed incorrectly and not within the required time frame. Questioned Costs: None Context: Two out of fourteen withdrawn students for the year ended June 30, 2024 were selected for testing. One of the two selected student’s refund was incorrectly computed and refunded after the required time frame. Recommendation: The University should have return of Title IV funds computations reviewed by someone independent of the person who does the initial computation. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-005-Student Financial Aid Cluster, ALN# 84.268 Compliance Requirement: Eligibility under the Federal Direct Student Loans Program Criteria: 34 CFR 685.203(d) and (e) specifies the aggregate loan limits for Direct Subsidized Loans and Direct Unsubsidized Loans. Condition: Students selected were disbursed loans in excess of the aggregate loan limits. Cause: Clerical error made by the Student Financial Aid Department. Effect: The University is not in compliance with aggregate loan limits of the federal direct student loans program. Questioned Costs: $11,495; on February 24, 2025 the University made adjustments to the related student’s account and reimbursed the over award to the Department of Education. Context: Three out of twenty-five students selected for testing were disbursed federal direct student loans in excess of aggregate limits. Recommendation: The University should review its process and policies relating to awarding federal direct student loan funds and implement procedures to prevent the over awarding of federal direct student loans in excess of all loan limits under the Federal Direct Student Loans program. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003-Student Financial Aid Cluster, ALN#84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Gramm-Leach-Bliley Act – Student Information Security Criteria: The University is required to have a written security program that address the seven elements as described in 16 CFR 314.4 (b). Condition: The University does not have a written security program that address the seven elements as described in 16 CFR 314.4 (b) as of June 30, 2024. Cause: Although the University meets some of the seven elements as described in 16 CFR 314.4 (b), the University has yet to establish a formalized written policy. Effect: The University could have risks associated with the safeguarding of sensitive information it is not aware of or does not protect against. Questioned Costs: None Context: Not all elements as described in 16 CFR 314.4 (b) have been met, and the University does not have formal written documentation of its program. Recommendation: The University should implement a written security program that addresses the required elements as described in 16 CFR 314.4 (b). Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-004-Student Financial Aid Cluster, ALN# 84.007, 84.033, 84.063, 84.268, 84.379 Compliance Requirement: Return of Title IV Funds Criteria: The University’s policy is that computations of refunds of Title IV Funds and withdrawal statements are to be reviewed by someone other than the preparer prior to funds being returned/disbursed. Condition: The refund of one of the two students selected for testing was incorrectly computed and was disbursed after 45 days from the withdrawal date. Cause: The University did not have someone independent of the preparer to review withdrawal statements and R2T4s prior to refunds being issued due to staffing turnover and unfilled positions in the student financial aid department during the year ended June 30, 2024. Effect: Refunds and disbursements to withdrawn students could be computed incorrectly and not within the required time frame. Questioned Costs: None Context: Two out of fourteen withdrawn students for the year ended June 30, 2024 were selected for testing. One of the two selected student’s refund was incorrectly computed and refunded after the required time frame. Recommendation: The University should have return of Title IV funds computations reviewed by someone independent of the person who does the initial computation. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.