Finding 1062412 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-09-06

AI Summary

  • Core Issue: A student who did not meet the minimum satisfactory academic progress (SAP) standards received financial aid due to inadequate review procedures.
  • Impacted Requirements: Compliance with 34 CFR 668.34, which mandates institutions to ensure students are making satisfactory academic progress to qualify for financial aid.
  • Recommended Follow-Up: Franklin Cummings Tech should enhance its controls over the SAP policy to prevent future instances of ineligible students receiving financial aid.

Finding Text

Finding number: 2023-001 Federal agency: U.S. Department of Education Programs: Student Financial Assistance Cluster Assistance Listing #: 84.033, 84.063, 84.268 Award year: 2023 Criteria According to 34 CFR 668.34: (a) An institution must establish a reasonable satisfactory academic progress policy for determining whether an otherwise eligible student is making satisfactory academic progress in his or her educational program and may receive assistance under the title IV, HEA programs. (9) If the institution permits a student to appeal a determination by the institution that he or she is not making satisfactory academic progress, the policy describes – (i) How the student may reestablish his or her eligibility to receive assistance under the title IV, HEA programs; (ii) The basis on which a student may file an appeal: The death of a relative, an injury or illness of the student, or other special circumstances; and (iii) Information the student must submit regarding why the student failed to make satisfactory academic progress, and what has changed in the student's situation that will allow the student to demonstrate satisfactory academic progress at the next evaluation. Condition Franklin Cummings Tech’s satisfactory academic progress policy (“SAP”) allows for a student who fails to meet the minimum standard to be provided one semester of academic warning. If the student does not improve, as described in Franklin Cummings Tech’s SAP, the student will be placed on academic suspension from Franklin Cummings Tech unless the student successfully appeals the academic suspension. The student placed on academic suspension will lose financial aid eligibility in the next semester. Our testing revealed that one student failed to meet the minimum standards established by Franklin Cummings Tech’s SAP but was awarded financial aid. Cause Franklin Cummings Tech failed to have proper review procedures in place to prevent students who did not meet the minimum SAP standards from receiving financial aid. Effect A student who did not meet the minimum SAP standards received financial aid. Questioned Costs $983 Perspective Our sample was not, and was not intended to be, statistically valid. Of the 40 students selected for testing, 1 student, or 2.5%, failed to meet the minimum standards established by Franklin Cummings Tech’s SAP, who did not receive notification. Identification as a Repeat Finding, if applicable Not applicable Recommendation Franklin Cummings Tech should continue to strengthen its controls surrounding SAP policy to ensure all students who receive assistance under the title IV are making satisfactory academic progress. View of Responsible Officials Franklin Cummings Tech agrees with the finding.

Categories

Questioned Costs Procurement, Suspension & Debarment Student Financial Aid Eligibility

Other Findings in this Audit

  • 485966 2023-001
    Significant Deficiency
  • 485967 2023-002
    Significant Deficiency
  • 485968 2023-003
    Significant Deficiency
  • 485969 2023-004
    Significant Deficiency
  • 485970 2023-001
    Significant Deficiency
  • 485971 2023-001
    Significant Deficiency
  • 485972 2023-002
    Significant Deficiency
  • 485973 2023-003
    Significant Deficiency
  • 485974 2023-004
    Significant Deficiency
  • 1062408 2023-001
    Significant Deficiency
  • 1062409 2023-002
    Significant Deficiency
  • 1062410 2023-003
    Significant Deficiency
  • 1062411 2023-004
    Significant Deficiency
  • 1062413 2023-001
    Significant Deficiency
  • 1062414 2023-002
    Significant Deficiency
  • 1062415 2023-003
    Significant Deficiency
  • 1062416 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.86M
84.063 Federal Pell Grant Program $1.15M
11.307 Economic Adjustment Assistance $576,914
47.076 Education and Human Resources $233,758
84.425 Education Stabilization Fund $173,246
84.116 Fund for the Improvement of Postsecondary Education $115,946
84.007 Federal Supplemental Educational Opportunity Grants $41,902
84.033 Federal Work-Study Program $5,277