Finding 1127535 (2024-007)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-03-31
Audit: 352022
Organization: William Peace Universirty (NC)

AI Summary

  • Core Issue: A student received a Direct Subsidized Loan without demonstrating financial need, violating federal requirements.
  • Impacted Requirements: This finding breaches CFR 685.200(2)(i), which mandates that borrowers must show financial need for Title IV funding.
  • Recommended Follow-Up: The University should create stronger policies to verify financial need before awarding Title IV funds.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.268 Federal Award Identification Number: P268K241946 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: In accordance with CFR 685.200(2)(i), a Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act. Condition: A student received a Direct Subsidized Loan that did not demonstrate financial need. Questioned Costs: $5,500 Context: This condition occurred for one out of forty students. Cause: The University’s controls over the awarding of the appropriate aid based off need were not functioning as designed. Effect: A student received Title IV funding for which they were not eligible. Repeat Finding: No Recommendation: We recommend the University establish additional policies to ensure all students meet the financial need criteria before awarding Title IV funds. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.

Categories

Questioned Costs Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 551087 2024-005
    Significant Deficiency
  • 551088 2024-005
    Significant Deficiency
  • 551089 2024-005
    Significant Deficiency
  • 551090 2024-005
    Significant Deficiency
  • 551091 2024-006
    Significant Deficiency
  • 551092 2024-006
    Significant Deficiency
  • 551093 2024-007
    Significant Deficiency
  • 551094 2024-008
    Significant Deficiency
  • 551095 2024-008
    Significant Deficiency
  • 551096 2024-008
    Significant Deficiency
  • 551097 2024-009
    Significant Deficiency Repeat
  • 551098 2024-010
    Material Weakness
  • 551099 2024-011
    Significant Deficiency
  • 551100 2024-011
    Significant Deficiency
  • 551101 2024-011
    Significant Deficiency
  • 551102 2024-011
    Significant Deficiency
  • 551103 2024-012
    Significant Deficiency
  • 551104 2024-012
    Significant Deficiency
  • 551105 2024-013
    Significant Deficiency
  • 551106 2024-014
    Material Weakness
  • 551107 2024-014
    Material Weakness
  • 551108 2024-014
    Material Weakness
  • 551109 2024-014
    Material Weakness
  • 1127529 2024-005
    Significant Deficiency
  • 1127530 2024-005
    Significant Deficiency
  • 1127531 2024-005
    Significant Deficiency
  • 1127532 2024-005
    Significant Deficiency
  • 1127533 2024-006
    Significant Deficiency
  • 1127534 2024-006
    Significant Deficiency
  • 1127536 2024-008
    Significant Deficiency
  • 1127537 2024-008
    Significant Deficiency
  • 1127538 2024-008
    Significant Deficiency
  • 1127539 2024-009
    Significant Deficiency Repeat
  • 1127540 2024-010
    Material Weakness
  • 1127541 2024-011
    Significant Deficiency
  • 1127542 2024-011
    Significant Deficiency
  • 1127543 2024-011
    Significant Deficiency
  • 1127544 2024-011
    Significant Deficiency
  • 1127545 2024-012
    Significant Deficiency
  • 1127546 2024-012
    Significant Deficiency
  • 1127547 2024-013
    Significant Deficiency
  • 1127548 2024-014
    Material Weakness
  • 1127549 2024-014
    Material Weakness
  • 1127550 2024-014
    Material Weakness
  • 1127551 2024-014
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.29M
84.063 Federal Pell Grant Program $1.43M
84.033 Federal Work-Study Program $46,035
84.007 Federal Supplemental Educational Opportunity Grants $39,392