Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: Students were not initially appropriately awarded subsidized aid based on need. Criteria: 34 CFR 685.203 Questioned Costs: $0 Context: 4 students out of 61 were under awarded subsidized loans based on need analysis and year of enrollment. These students were corrected during the audit process by reallocating unsubsidized loans to subsidized loans for a total of $5,010 reallocated. One of these four students was also under awarded unsubsidized loans. Due to the loan period, the University could not originate the loan to correct the student. Cause: There is a manual review process that did not catch these students. Effect: Students did not receive subsidized federal aid for which they were eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University set up reports in the student information system to periodically check for over or under awarding of need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The NSLDS enrollment status effective date for withdrawals was not accurately sent to NSLDS from the system. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 75 students tested, 6 students had incorrect effective dates reported for their enrollment status, ranging from 13 to 84 days different. All of these students were official and unofficial withdrawals. Five of the students were corrected during the audit process. Cause: The system tracks the last date of attendance for certain classes, and professors track attendance for other classes, and not all dates are reported within one system to pull for NSLDS enrollment reporting. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: Yes - 2024-001 Recommendation: We recommend the University put a system in place to ensure that the date being reported to NSLDS as the effective date of withdrawal is the actual last date of attendance for the student, that the University is completing reconciliations of enrollment status periodically, and that the University is completing spot checks of enrollment statuses to NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Inaccurate and Untimely Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return the correct amount of unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 19 students, 3 students who withdrew during the audit period tested had funds returned late, ranging from 14 to 31 days. 1 of 19 withdrawals tested had a typo in the actual amount returned by over returning 3 dollars of Pell. All students were corrected during the audit process. Cause: These were oversights by the University. Effect: The unearned Title IV funds were returned late. Identification as repeat finding, if applicable: Yes - 2024-002 Recommendation: We recommend the University continue to provide additional training for counselors performing R2T4 calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Incorrect Pell Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: 4 students out of 50 were not properly awarded Pell based on enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: All four students were under awarded Pell based on the number of credits they began attendance with, for a total of $2,183. All four students were corrected during the audit process. Cause: These were oversights by the University. Effect: Pell was not awarded correctly based on enrollment status. Identification as repeat finding, if applicable: Yes - 2024-003 Recommendation: We recommend a process be used to adjust Pell to be paid in alignment with enrollment status. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Incorrect Resolution of ISIR Aggregate Limits Flag Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: 2 out of 61 students had incorrect resolutions to the ISIR flag for aggregate loan limits. Criteria: 34 CFR 685.203(d) Questioned Costs: $0 Context: Out of 61 students tested for ISIR flags, 2 were underawarded Pell and loans based on the remaining eligibility. This resulted in an underaward of Pell of $184 which was corrected during the audit. There was also an under award of $553 of subsidized loans and $1,333 of unsubsidized loans that could not be originated due to being past the loan period. Cause: For one student, the initial ISIR received had the aggregate limits flag and was resolved. The second ISIR received did not resolve the flags, and no aid was disbursed. For the second student, there was an incorrect proration of loans for graduation as well as an incorrect resolution of the remaining unsubsidized eligibility. Effect: Students were not resolved correctly, resulting in loss of federal aid. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University review the way the system is flagging aggregate limits and resolutions. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Lack of Administrative Capability Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033 (Student Financial Assistance Cluster) Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The administrative capability is currently below the required level for maintaining compliance with Title IV regulations. Criteria: 34 CFR 668.16 Questioned Costs: $0 Context: In the current year, we found several areas of noncompliance and three repeated findings with the Department of Education regulations. This is due to limitations within the financial aid system, the current level of staffing for financial aid, the complexity of administering financial aid for the various educational programs with significant FAFSA and regulation changes, the communication required between departments for appropriate administering of financial aid, and the number of enrolled students receiving financial aid. Cause: The financial aid department continues to adjust staffing and respond to changes in legislation. The financial aid department continues to train new staff. The system used for student financial aid and enrollment reporting has limitations related to regulation changes. Effect: Noncompliance with a number of Title IV regulations. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University adjust the financial aid system to allow for more automated packaging and adjust the double checking rules to flag the administrator if packaging may need to be adjusted after changed have occurred. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.