Finding Text
2025-003 Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033 Student Financial Assistance Cluster – Special Tests and Provision – Disbursement to or on Behalf of Students Material Weakness in Internal Controls Over Compliance Criteria: According to the Student Financial Aid Handbook, when calculating a student’s unmet need, non-FSA sources of aid need to be taken into consideration. When classifying non-FSA sources of aid, if a student receives the award because of postsecondary enrollment (for example, a scholarship from a local social club that requires a student to be attending a postsecondary school), it counts as Other Financial Assistance (OFA). The College must make a reasonable attempt to determine what OFA the student will receive and apply as the total consideration for the student's aid package. Condition: During our review of the calculation of student disbursements, we noted a student whose awards exceeded the unmet need. This over award was created by OFA that was received in the form of non-Title IV scholarships. Cause: The College’s existing control procedures to ensure that students receiving OFA were not over awarded were not functioning properly. Effect: The College did not take OFA into consideration when disbursing Title IV awards. As a result, a student received awards exceeding the unmet need. Questioned Costs: $1,663 Sampling: A nonstatistical sample of 60 disbursements out of 6,700 disbursements were selected for testing. Repeat Finding from Prior Years: No Recommendation: The College should implement a control process to ensure OFA are properly identified and taken into consideration when creating a student’s financial aid package. The College should consider whether or not the Department of Education needs to be made whole. Views of Responsible Officials: The Director of Financial Aid agrees with the finding.