Finding Text
Criteria or specific requirement: Section 479A of the higher education administration (HEA) gives an institution’s financial aid administrators (FAA) the authority to use professional judgment to adjust, on a case-by-case basis, the cost of attendance or the values of the items used in calculating the expected family contribution (EFC) to reflect a student’s special circumstances. In making case-by-case determinations, the FAA must obtain and retain in the affected student’s file documents supporting and substantiating the reasons for any adjustment. The HEA does not provide a framework for the FAA to calculate the expected student or parent contribution or for the adjusted aid amounts. In addition, the Uniform Guidance 2 CRF 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonable ensure compliance with federal laws, regulations, and program compliance requirements.
Condition: During our testing, we noted that there was no documentation of review of professional judgement issued available.
Questioned costs: None reported.
Context: During our testing, we noted that one student out of forty had professional judgement issued. We were able to review the documents, however we were unable to see evidence that a review of the professional judgement issuance had been performed by the University.
Cause: There was no documentation to show that procedures to review professional judgement decisions were completed.
Effect: Failure to assess professional judgement decisions could result in an employee not adequately assessing the students’ needs and leave students underserved. Failure to review verification documents could result in students’ verification not being completed correctly.
Repeat Finding: No.
Recommendation: We recommend the University enhance procedures for reviewing professional judgement to ensure documentation of review is stored.
View of Responsible Official: The University agrees with the finding.