Audit 415110

Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans, 84.063 Federal Pell Grants Federal Award Identification #: 2025-2026 Financial Aid Year Condition: Students were not appropriately awarded subsidized loans based on need. Criteria: 34 CFR 685.203, 34 CFR 685.301, 34 CFR 690.67 Questioned Costs: $6,976 Context: Out of 40 students tested, 4 students were not awarded aid appropriately based on need analysis. The first student had remaining need of $2,753 in subsidized loans that was incorrectly awarded as unsubsidized loans. This resulted in an overaward of $2,753 in unsubsidized loans that should have been allocated as subsidized loans. The second student had need for $4,777 in subsidized loans, but was incorrectly awarded $5,500, resulting in an overaward of $723 in subsidized loans that should have been allocated as additional unsubsidized loans. The third student had need for $3,500 in subsidized loans that was incorrectly awarded as unsubsidized loans due to a change in budget after initial packaging. This resulted in an overaward of $3,500 in unsubsidized loans that should have been allocated as subsidized loans. The fourth student was not awarded Pell in the Summer term even though the student was eligible. This was caused by the student’s awarding screen being locked in PowerFaids. Additionally, when the University noticed this and unlocked the screen, there was another approval of the unlock required in order to allow the Pell to process. This resulted in an underaward of $1,849 in Pell. These were corrected during the audit. Cause: This was an oversight by the University. Effect: There was incorrect allocation of subsidized versus unsubsidized loans, which affects the amount and timing of interest the student must repay. There was also underawarded Pell. Identification as repeat finding, if applicable: See 2025-001 Recommendation: We recommend that the University set up reports in the student information system to periodically check for over or under awarding of need-based federal aid. We further recommend adding a step to the processing checklist to review for secondary unlocks required to allow the system to process aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Inaccurate and Late Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans, 84.063 Federal Pell Grants Federal Award Identification #: 2025-2026 Financial Aid Year Condition: R2T4 calculations were not consistently completed correctly. Criteria: 34 CFR 668.22 Questioned Costs: $5,807 Context: Out of 6 withdrawals tested, 1 R2T4 calculation was inaccurate and 2 were returned late. One student’s Post-Withdrawal Disbursement was calculated using both modules in the term rather than only one. This resulted in an overaward of $907 in Pell. One modular student was incorrectly evaluated as being a withdrawal exemption for both the Fall and Spring terms. This resulted in $4,900 in FDL being both under-returned and late returns. These were corrected during the audit. Cause: This was an oversight by the University. Effect: Noncompliance with R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students’ R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.