Finding Text
Criteria or specific requirement: The Code of Federal Regulations (34 CFR § 668.34(a)) requires institutions to establish a reasonable satisfactory academic progress (SAP) policy for determining whether an otherwise eligible student is making satisfactory academic progress in his or her educational program and may receive assistance under Title IV, HEA programs. Per 2 CFR 200.303, nonfederal entities receiving federal awards must establish and maintain effective internal control designed to reasonably ensure compliance with federal laws, regulations, and the terms and conditions of the award. Condition: The College did not properly identify students on Satisfactory Academic Progress (SAP) suspension, resulting in disbursement of aid to ineligible students. Questioned Costs: $21,381 Context: During our testing of 60 students, we noted 8 students who did not meet SAP requirements and were not placed on SAP suspension. Cause: The students' SAP statuses were not being calculated within the College’s system due to a known system issue and notifications of a change in SAP standing were not sent out to students. Effect: Ineligible students received Title IV funds. Repeat Finding: 2023-008. Recommendation: We recommend the College strengthen its internal controls to ensure timely identification of students not meeting SAP standards. Additionally, the College should work with its system administrator to resolve the SAP calculation issue or implement an alternative method for tracking SAP compliance. Views of responsible officials: There is no disagreement with the finding.