FAC Explorer

Finding 1080573 (2024-004)

-
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2024-10-30
Audit: 326552
Organization: Northern Kentucky University (KY)
Auditor: Dean Dorton Allen Ford

AI Summary

  • Core Issue: Incorrect cost of attendance (COA) led to a student receiving need-based aid they weren't eligible for.
  • Impacted Requirements: The University did not comply with 34 CFR 685.301 regarding proper financial aid packaging.
  • Recommended Follow-Up: Implement controls to ensure aid is packaged based on anticipated enrollment and correct expected family contribution (EFC).

Finding Text

Finding 2024-004: Federal Program: U.S. Department of Education Student Financial Aid Cluster: Federal Direct Loan Program, Assistance Listing No. 84.268 Teacher Education Assistance for College and Higher Education Grants, Assistance Listing No. 84.379 Criteria: The University must comply with 34 CFR 685.301. Condition: During our testing of 40 samples, we noted one student for which incorrect cost of attendance (COA) was used in the student's budget. The student's financial aid was packaged with an incorrect 9 month COA and a proper 5 month expected family contribution (EFC). This resulted in the student appearing to have an unmet need, and as a result, need-based aid was awarded. Cause: Based upon the student's enrollment status, the University had to "on-demand" process them. The University did not have controls in place to ensure the student's aid was packaged appropriately by pro-rating both the student's EFC and COA in the same manner based on anticipated enrollment. Effect: The provisions of 34 CFR 685.301 were not followed and thus a student erroneously received need-based aid. Questioned Costs: Known questioned costs is the total need-based aid, specifically subsidized direct loans, awarded to the student during the year, totaling $2,750. The total likely questioned costs is unknown. Recommendation: We recommend that the University implement controls to ensure student's aid is being packaged and awarded based on the anticipated enrollment of the student, with the correct corresponding EFC. Views of responsible officials and planned corrective actions: The University agrees with the auditor’s findings and recommendation. The following corrective action will be taken: The University will implement controls to ensure student’s aid is being packaged and awarded on the anticipated enrollment of the student, with correct corresponding EFC. The Office of Student Financial Assistance will collaborate with IT to ensure proper training and review of packaging logic accurately reflects the students’ federal student aid eligibility.

Categories

Questioned Costs Student Financial Aid Eligibility Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 504120 2024-001
    Significant Deficiency
  • 504121 2024-001
    Significant Deficiency
  • 504122 2024-001
    Significant Deficiency
  • 504123 2024-001
    Significant Deficiency
  • 504124 2024-001
    Significant Deficiency
  • 504125 2024-001
    Significant Deficiency
  • 504126 2024-001
    Significant Deficiency
  • 504127 2024-002
    Significant Deficiency
  • 504128 2024-003
    - Repeat
  • 504129 2024-003
    - Repeat
  • 504130 2024-004
    -
  • 504131 2024-004
    -
  • 1080562 2024-001
    Significant Deficiency
  • 1080563 2024-001
    Significant Deficiency
  • 1080564 2024-001
    Significant Deficiency
  • 1080565 2024-001
    Significant Deficiency
  • 1080566 2024-001
    Significant Deficiency
  • 1080567 2024-001
    Significant Deficiency
  • 1080568 2024-001
    Significant Deficiency
  • 1080569 2024-002
    Significant Deficiency
  • 1080570 2024-003
    - Repeat
  • 1080571 2024-003
    - Repeat
  • 1080572 2024-004
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $83.64M
84.063 Federal Pell Grant Program $13.98M
94.006 Americorps State and National 94.006 $1.55M
84.033 Federal Work-Study Program $495,843
84.047 Trio Upward Bound $457,642
84.038 Federal Perkins Student Loan Fund $439,521
84.007 Federal Supplemental Educational Opportunity Grants $438,400
93.264 Nurse Faculty Loan Program (nflp) $431,590
84.042 Trio Student Support Services $399,606
93.516 Public Health Training Centers Program $219,496
47.083 Integrative Activities $161,747
21.027 Coronavirus State and Local Fiscal Recovery Funds $155,868
93.273 Alcohol Research Programs $144,954
94.021 Americorps Volunteer Generation Fund 94.021 $131,753
11.303 Economic Development Technical Assistance $109,832
12.903 Gencyber Grants Program $106,775
93.558 Temporary Assistance for Needy Families $103,664
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $87,961
93.242 Mental Health Research Grants $79,302
10.855 Distance Learning and Telemedicine Loans and Grants $66,799
93.778 Medical Assistance Program $63,026
93.124 Nurse Anesthetist Traineeship $55,376
93.268 Immunization Cooperative Agreements $52,453
11.307 Economic Adjustment Assistance $51,858
84.U01 Americorps National Service Trust $50,668
43.001 Science $48,844
93.113 Environmental Health $47,108
47.084 Nsf Technology, Innovation, and Partnerships $34,314
84.335 Child Care Access Means Parents in School $33,256
45.162 Promotion of the Humanities Teaching and Learning Resources and Curriculum Development $31,250
93.732 Mental and Behavioral Health Education and Training Grants $29,758
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $26,354
84.425 Education Stabilization Fund $16,327
47.049 Mathematical and Physical Sciences $14,205
47.076 Stem Education (formerly Education and Human Resources) $14,080
43.008 Office of Stem Engagement (ostem) $14,064
43.012 Space Technology $12,273
10.216 1890 Institution Capacity Building Grants $9,216
12.905 Cybersecurity Core Curriculum $6,400
93.658 Foster Care Title IV-E $6,045
93.279 Drug Abuse and Addiction Research Programs $5,936
93.859 Biomedical Research and Research Training $5,725
94.013 Americorps Volunteers in Service to America 94.013 $2,637
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $1,123