Finding 1084603 (2024-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2024-11-15
Audit: 328600
Organization: The King's University (TX)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Students were under-awarded subsidized loans due to transfer credits not being included in the earned credit calculation.
  • Impacted Requirements: Non-compliance with 34 CFR 685.203 regarding proper awarding of federal aid based on need and credits.
  • Recommended Follow-Up: Update the reporting system to include all earned credits, ensuring accurate aid awards for all students.

Finding Text

Need Analysis and Transfer Credits Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: Students were not initially appropriately awarded subsidized aid based on need and credits earned. Criteria: 34 CFR 685.203 Questioned Costs: $0 Context: 6 students out of 60 were under awarded subsidized loans based on the number of credits earned due to an inadvertent exclusion of transfer credits not being part of the earned credit calculation. These students have not yet been adjusted. Cause: The University uses a third party to assist with awarding federal aid, and the reports pulling earned credits did not include transfer credits that were applied to the student. Effect: Students were awarded less subsidized federal aid than they were eligible for. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University update the report that pulls all credits as all earned credits and not just those credits earned at the University. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.22M
84.063 Federal Pell Grant Program $532,577
84.033 Federal Work-Study Program $35,110
84.007 Federal Supplemental Educational Opportunity Grants $21,293