Finding 1080099 (2024-002)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2024-10-24
Audit: 325860
Organization: Dunwoody College of Technology (MN)

AI Summary

  • Core Issue: A student was over awarded $9,500 in direct loan funds due to inadequate controls for transfer students.
  • Impacted Requirements: Compliance with 34 CFR 690.65, which limits total loan amounts based on prior awards.
  • Recommended Follow-Up: The College should assess transfer students' loan status each semester to prevent future overawards.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007 – Federal Supplemental Education Opportunity Grants 84.033 – Federal Work Study Program 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2023 to June 30, 2024 Type of Finding: * Significant Deficiency in Internal Control over Compliance * Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 690.65 states that the total loan amount that the student may receive for the program (or remaining portion of the program) at the new school (for the abbreviated loan period and any subsequent loan period combined) may not exceed the applicable prorated annual loan limit for the program or remaining portion of the program. Condition: During our testing, we noted that one of 40 students tested was over awarded subsidized and unsubsidized direct loan funds. Questioned Costs: $9,500 Context: The College awarded a transfer student awarded subsidized and unsubsidized direct loan funds when they had already been awarded these funds at their prior institution. Cause: Lack of controls around awarding transfers with in SFA. Effect: There are questioned costs of $9,500 Repeat Finding: No Auditor’s Recommendation: We recommend the College evaluate the transfer students’ status each semester. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Categories

Questioned Costs Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 503653 2024-001
    Significant Deficiency
  • 503654 2024-001
    Significant Deficiency
  • 503655 2024-001
    Significant Deficiency
  • 503656 2024-001
    Significant Deficiency
  • 503657 2024-002
    Significant Deficiency
  • 503658 2024-002
    Significant Deficiency
  • 503659 2024-002
    Significant Deficiency
  • 503660 2024-002
    Significant Deficiency
  • 503661 2024-003
    Significant Deficiency
  • 503662 2024-003
    Significant Deficiency
  • 503663 2024-003
    Significant Deficiency
  • 503664 2024-003
    Significant Deficiency
  • 1080095 2024-001
    Significant Deficiency
  • 1080096 2024-001
    Significant Deficiency
  • 1080097 2024-001
    Significant Deficiency
  • 1080098 2024-001
    Significant Deficiency
  • 1080100 2024-002
    Significant Deficiency
  • 1080101 2024-002
    Significant Deficiency
  • 1080102 2024-002
    Significant Deficiency
  • 1080103 2024-003
    Significant Deficiency
  • 1080104 2024-003
    Significant Deficiency
  • 1080105 2024-003
    Significant Deficiency
  • 1080106 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.92M
84.063 Federal Pell Grant Program $2.30M
84.007 Federal Supplemental Educational Opportunity Grants $131,462
84.033 Federal Work-Study Program $91,299