Finding Text
Lack of Administrative Capability Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063, 84.007, 84.033 and 84.379 (Student Financial Assistance Cluster)
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: The administrative capability is currently below the required level for maintaining compliance with Title IV regulations.
Criteria: 34 CFR 668.16
Questioned Costs: $0
Context: In the current year, we found several areas of noncompliance and three repeat findings with the Department of Education regulations due to the fact that the financial aid system was not designed to appropriately support the current level of staffing for financial aid, the complexity of administering financial aid for the various educational programs, the communication required between departments for appropriate administering of financial aid, and the number of enrolled students receiving financial aid.
Cause: The financial aid department continues to adjust staffing but is still in the process of training new staff.
Effect: Noncompliance with a number of Title IV regulations. Questioned costs as indicated in the following findings.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend the College implement additional training tools for the financial aid office, or consider outsourcing financial aid functions such as packaging, disbursing, reconciliations, etc. to a Title IV third party administrator.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.