Finding Text
Criteria: Awards must be coordinated among the various programs and with other federal and nonfederal
aid (need and non-need based aid) to ensure that total aid is not awarded in excess of the
student’s financial need (34 CFR § 668.42 FWS and 34 CFR § 682.301). Per 34 CFR § 685.200, a Direct
Subsidized Loan borrower must demonstrate financial need in accordance with Title IV, Part F of the
Higher Education Act of 1965. Upon packaging a student’s aid, schools are required to calculate the
student’s need based on the expected family contribution, estimated financial assistance, and estimated
cost of attendance.
Condition/context: A sample of 25 students out of a population of 573 students who received
disbursements of student financial assistance federal awards was selected. The financial need was
calculated for each student, with the student’s estimated financial assistance also deducted. One student
was identified as being over awarded by $16,700.
Our sample was not, and was not intended to be, statistically valid.
Questioned costs: Less than the questioned cost threshold of $25,000.
Cause/Effect: This occurred because of a lack of properly documented control procedures surrounding
the recording and review of budget adjustments. The student received multiple adjustments to their cost
of attendance and award due to changes in enrollment status. One student was over awarded by
$16,700.
Repeat finding: No
Recommendation: We recommend the University continue to focus on improving internal controls
surrounding the calculation and posting of, as well as review of, budget adjustments. We recommend
further that the University ensure this process is well documented in a formal policy.
Views of responsible officials and planned corrective actions: Management agrees with the finding
as presented. Corrective action taken is as follows: Management has completed a review and refinement
of steps already in place, specifically addressing the processing of budgets for students who are off-cycle
during a semester. Management has drafted a quality control process document to address the
deficiency.