Finding Text
Ineligible Disbursements Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268
Federal Award Identification #: 2023-2024 Award Year
Condition: Students were not appropriately awarded federal direct loans based on need analysis or year of enrollment.
Criteria: 34 CFR 685.203
Questioned Costs: $3,000
Context: Out of 37 students tested, 3 were over awarded loans. One student was not awarded aid appropriately based on need analysis; this was corrected by reallocating $2,069 from subsidized to unsubsidized loans. The other two students were incorrectly awarded loans based on their year of enrollment. The first resulted in an over award of $2,000 in unsubsidized loans, and the second was over awarded $1,000 in subsidized loans. Both of these students were corrected during the audit. Because of the percentage of errors in our sample, this is classified as significant.
Cause: This was an oversight by the College.
Effect: Students received subsidized and unsubsidized federal aid for which they were not eligible.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend that the College implement a review of aid eligibility to periodically check for over awards.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.