Finding Text
FINDING 2024-001: UNDERAWARDED FEDERAL DIRECT SUBSIDIZED LOANS
FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: SFA CLUSTER
ALN: 84.268
FEDERAL AWARD YEAR: 2022-2023, 2023-2024 Compliance Requirement: Eligibility (E.) Criteria: A second year student can receive up to $4,500 in subsidized loans in one academic year (34 CFR 685.203). Condition: We tested forty files, thirty-six of which were Federal Direct Loan recipients, and two students did not
receive the full amount of their Federal Direct Subsidized Loans. We consider this finding to be a instance of noncompliance. Cause: The condition was caused by using an incorrect grade level for one student and by not maximizing full
subsidized loan eligibility prior to packaging unsubsidized loans for the other student. Effect or Potential Effect: The result is students received unsubsidized loans prior to receiving full subsidized loans. Statistical sampling was not used when making sample selections. Questioned Costs : $0 Recommendation: We recommend the College reclassify $2,124 from unsubsidized to subsidized and increase
controls over packaging direct loans.
Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the
Corrective Action Plan.