Finding Text
2023-006 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: In the case of an undergraduate student who has successfully completed the first and
second years of a program of study of undergraduate education but has not successfully
completed the remainder of the program, the total amount the student may borrow for any
academic year of study under the Direct Subsidized Loan Program may not exceed the
following: $5,500 for a program of study of at least an academic year in length (34 CFR
685.203).
Condition: During our testing of thirty-seven student files, we noted two individuals (5%) did
not receive the full amount of their Federal Direct Subsidized Loans.
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: $5,436
Cause and Effect: Without proper review of eligibility of financial aid, students may receive an
incorrect amount of Title IV aid. The result is students received unsubsidized loans prior to
receiving full subsidized loans.
Recommendation: We recommend Cottey College evaluate policies and procedures to ensure
students receive the proper amount of Title IV aid.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.