Finding 1115810 (2024-002)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-03-28
Audit: 349900
Organization: Eastern University (PA)
Auditor: Capincrouse LLC

AI Summary

  • Core Issue: Verification was improperly waived for 2 students who received need-based federal aid.
  • Impacted Requirements: This violates 34 CFR 668.54, which mandates verification for federal aid recipients.
  • Recommended Follow-Up: The University should regularly check students marked as "verification not completed" to confirm they haven't received need-based federal aid.

Finding Text

Verification DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, and 84.007 Federal Award Identification #: 2023-2024 Award Year Condition: Verification was incorrectly waived and not completed for 2 students who received need based federal aid. Criteria: 34 CFR 668.54 Questioned Costs: $28,874 Context: Out of 281 students selected for verification from the Central Processing System that had federal aid, we noted verification was not completed on 5 students that were included in our sample of 25. We noted 2 of these students that did not have verification completed were disbursed need based federal financial aid. The need based federal aid disbursed to these students included $2,990 in Pell, $7,918 in subsidized direct loans, and $1,660 in FSEOG. The students were also disbursed $3,960 in unsubsidized direct loans and $12,346 in parent plus loans. Cause: Verification was incorrectly waived in the system. There was no review process to ensure that students selected for verification with a status of verification not completed did not receive need based federal aid. Effect: Need based aid is impacted directly by the results of verification. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University periodically review students selected for verification with a status of verification not completed to ensure they did not receive need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $39.16M
84.063 Federal Pell Grant Program $4.91M
11.028 Connecting Minority Communities Pilot Program $1.51M
84.184 School Safely National Activities $1.20M
84.031 Higher Education Institutional Aid - Developing Hispanic Serving Institutions $660,305
84.007 Federal Supplemental Educational Opportunity Grants $305,294
84.033 Federal Work-Study Program $242,690
84.038 Federal Perkins Loan Program $166,931
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $39,637