Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Aid Cluster
CFDA Number: 84.268 Federal Direct Student Loans
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance (Other Matters)
Criteria or specific requirement: Per CR685.200a(2)(i) a Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act. Per 20 USC CHAPTER 28, SUBCHAPTER IV, Part F: Need Analysis. Except as otherwise provided therein, for award year 2023–2024 and each subsequent award year, the amount of need of any student for financial assistance under this subchapter (except subpart 1 or 2 of part A) is equal to— (1) the cost of attendance of such student, minus (2) the student aid index (as defined in section 1087mm of this title) for such student,
minus (3) other financial assistance not received under this subchapter (as defined in section 1087vv(i)
of this title).
Condition: The University calculated award amounts prior to applying certain scholarships to student accounts and did not update the award amounts prior to disbursing the subsidized awards to students.
Questioned costs: $9,758.
Context: Out of a sample of 40 students, three students were awarded subsidized award greater than their calculated remaining need.
Cause: The Institution's processes and controls did not ensure the student received the proper award amount.
Effect: Institution did not review the student's award packaging to ensure awards were appropriate based on the student's remaining need. This caused over awarding of subsidized loans to students which was offset by an under awarding of unsubsidized loans.
Repeat Finding: No.
Recommendation: We recommend that during the financial aid package review, additional procedures are put in place to ensure that student awards are appropriately calculated.
Views of responsible officials: There is no disagreement with the audit finding. Management has addressed their corrective action plan in a separately issued letter.