Finding Text
Need Analysis
DEPARTMENT OF EDUCATION
ALN #: 84.268
Federal Award Identification #: 2023-2024 Award Year
Condition: Students were over awarded need due to a state grant not being factored into need analysis.
Criteria: 34 CFR 685.203
Questioned Costs: $3,295
Context: 1 out of 60 students tested was over awarded need due to an inaccurate need analysis. This resulted in $3,295 awarded as subsidized federal direct loans that should have been awarded as unsubsidized federal direct loans. The student was corrected as part of the audit process.
Cause: Because the Golden State Teacher Grant is able to replace EFC, the University had a misunderstanding on how that impacts the federal need analysis for those students.
Effect: Students received need based federal aid for which they were not eligible.
Identification as repeat finding, if applicable: N/A
Recommendation: We recommend the University review all new state and outside scholarships to determine that the student information system parameters for federal need analysis are set up correctly to properly calculate need analysis.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.