Finding Text
Federal Agency: US Department of Education
Federal Program Title: Student Financial Assistance Cluster
Assistance Listing Number: 84.007, 84.033, 84.063, 84.268
Federal Award Identification Number and Year: Various
Award Period: July 1, 2023, to June 30, 2024
Type of Finding:
• Compliance, Other Matter
• Significant Deficiency in Internal Control Over Compliance
Criteria or specific requirement: The Code of Federal Regulation, 34 CFR 668.16(f), states the College is required to develop and apply an adequate system to identify and resolve discrepancies in the information that the institution receives from different sources with respect to a student’s application for financial aid under Title IV, HEA programs.
Condition: During inquiries with management, the College identified four students that they were unable to validate their high school transcripts.
Context: During inquiries with management, the College identified four students that were awarded and disbursed Pell, SEOG, and Direct Loans, who were subsequently determined to be ineligible for the programs.
Questioned costs: $19,435
Cause: During our testing, we identified that the College’s internal control policies were not effectively designed to ensure funds are disbursed to eligible students.
Effect: The College disbursed funds to four ineligible students, resulting in questioned costs of $19,435.
Repeat finding: No
Recommendation: We recommend the College review their internal control procedures to ensure that students are eligible prior to funds being disbursed.
View of responsible official: Management agrees with the finding and has already implemented a corrective plan.