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.