Finding Text
2023-008 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 who has not successfully completed a program of study at the undergraduate
level may not receive Federal Direct Subsidized Loans in excess of $23,000 (34 CFR 682.204).
Condition: During our testing of thirty-seven student files, we noted one individual (2.7%)
received an excess of $1,969 over the maximum undergraduate level of $23,000 in 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: $1,969
Cause and Effect: Without proper review of eligibility of financial aid, students may receive an
incorrect amount of Title IV aid. The result is a student received ineligible loan proceeds.
Recommendation: We recommend Cottey College reclassify $1,969 from subsidized to
unsubsidized.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.