Finding 1124336 (2024-003)

-
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: The College improperly disbursed Direct Subsidized loans to 2 out of 40 students, violating eligibility rules.
  • Impacted Requirements: This finding breaches the compliance requirement under 34 CFR 685.203 regarding loan amounts exceeding the student's financial need.
  • Recommended Follow-Up: The College should review and improve its policies to ensure accurate disbursement of Subsidized Direct Loans.

Finding Text

Criteria: 34 CFR 685.203 states, "A student may not receive a Federal Direct Subsidized Loan amount that exceeds the student’s estimated cost of attendance for the period of enrollment less the borrower’s expected family contribution and estimated financial assistance for that period.” Condition: The College did not properly disburse Direct Subsidized loans for 2 out of 40 students (5%). We consider this condition to be an instance of noncompliance to the Eligibility compliance requirement and is not a repeated finding. Statistical sampling was not used in making sample selections. Questioned Costs: $1,500 Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Subsidized Direct Loans. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Categories

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

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.27M
84.063 Federal Pell Grant Program $1.15M
84.033 Federal Work-Study Program $973,426
84.038 Federal Perkins Loan Program $75,937
84.007 Federal Supplemental Educational Opportunity Grants $51,433