Finding Text
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid FALN Number: Student Financial Aid Cluster Award Period: June 01, 2024 through May 31, 2025 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: Federal regulations require institutions to award and disburse Title IV aid accurately and in accordance with student eligibility: Pell Grant: 34 CFR § 690.75 – Payment determination based on enrollment status and cost of attendance. FSEOG: 34 CFR § 676.10 – Must be awarded to students with exceptional financial need. Subsidized and Unsubsidized Stafford Loans: 34 CFR § 685.301 – Loan amounts must be based on grade level, dependency status, and cost of attendance. General Disbursement Requirements: 34 CFR § 668.164 – Institutions must disburse funds for the correct amount and payment period. Condition: A review of student financial aid records revealed that although students were accurately awarded federal financial aid—including Pell Grants, FSEOG, Subsidized Stafford Loans, and Unsubsidized Stafford Loans—based on documented eligibility and financial need, the actual disbursements were less than the awarded amounts. In several cases, students did not receive the full aid they were eligible for during the designated payment period, resulting in underdisbursement of funds. Questioned costs: $49,565 Context: During our testing, it was noted that 4 of 40 students were underdisbursed Pell, 12 of 40 students were underdisbursed SEOG, 7 of 40 students were underdisbursed Subsidized Stafford Loans, and 5 of 40 students were underdisbursed Unsubsidized Stafford Loans. Cause: The University did not have a process in place to ensure the student were disbursed in accordance with their federal awards. Effect: The University was not in compliance with Title IV aid regulations. Repeat finding: No Recommendation: We recommend the University enhance system controls to ensure disbursements match awards. Views of responsible officials: There is no disagreement with the audit finding.