Finding Text
Audit Finding Reference Number Questioned Costs
2023 – 007 – Satisfactory Academic Progress $40,110
Federal Program and Specific Federal Award Identification
CFDA Title and Number
84.063 Federal PELL Grant Program (PELL)
84.268 Federal Direct Student Loan (Direct)
Federal Award Number
June 30, 2023
Federal Agencies
U.S. Department of Education
Pass-Through Entity
Not applicable
Criteria
Title IV regulations, 34 CFR 668.32 (f) stipulates that students participating in the Title IV Federal Financial Aid program must be maintaining satisfactory progress in the course of study he or she is pursuing, according to the standards and practices of that institution to receive student financial aid.
OMB 2 CFR 200, Subpart F Compliance Supplement, Part 5 Appendix A, Student Financial Assistance – Special Tests and Provisions Compliance Requirement Number 9 – Satisfactory Academic Progress stipulates that a student must maintain good standing, or satisfactory progress. Title IV regulations CFD 668.16 (e) stipulates that an institution must establish, publish and apply reasonable standards for measuring satisfactory academic progress.
Conditions and Contexts
I noted during my audit that seven (7) students out of ninety-three (93) tested were awarded and received financial, although the students did not meet ABC’s standards for achieving satisfactory academic progress, nor were valid satisfactory academic progress appeals documentation available.
Cause
It appears that ABC inadvertently disbursed aid to academically ineligible students.
Questioned Costs
For the purpose of this condition, I have questioned costs totaling $40,110 as follows:
Program Amount
Federal PELL $24,733
Federal Direct Loan 15,377
Total $40,110
Effect
It appears that ABC disbursed financial aid to a student that did not maintain satisfactory academic progress.
Repeat Finding
No.
Recommendation
I recommend that ABC adhere to established policies and procedures as documented in the revised satisfactory academic progress policy and monitor the academic standing of all students prior to awarding student financial aid, and ensure all required appeals documented is maintained.
Management’s Response
Management concurs with this finding. The College will review and adhere to its practices, policies, and procedures along with federal guidelines as it relates to students meeting satisfactory academic progress. The College has an SAP appeal committee in place to enforce and abide by the College's policy. The College will return any ineligible funds accordingly.
Responsible Administrators: Director of Financial Aid
Effective: Immediately and ongoing.