Finding Text
2023-003 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: A student may not receive a Federal Direct Subsidized Loan amount that exceeds the student's estimated cost of attendance for the period of enrollment less the borrower's expected family contribution and estimated financial assistance for that period (34 CFR 685.203).
Condition: During our testing of thirty-seven student files, we noted three individuals (8%)
received a subsidized loan in excess of need.
We consider this condition to be an instance of non-compliance relating to the Eligibility
compliance requirement. Statistical sampling was not used in making sample selections.
Questioned Costs: $5,002
Cause and Effect: Without proper review of eligibility of financial aid, students may receive an
incorrect amount of Title IV aid.
Recommendation: We recommend Cottey College reclassify $5,002 from subsidized to
unsubsidized.
2023-003 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Views of Responsible Officials: Management agrees with this Single Audit Finding and response is
included in the Corrective Action Plan.