Finding 1169278 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-16

AI Summary

  • Core Issue: A student received $64 too much in unsubsidized loans due to incorrect rounding in the loan calculation.
  • Impacted Requirements: The College must notify students of Title IV fund amounts and ensure disbursements comply with regulations.
  • Recommended Follow-Up: Provide additional training for financial aid staff to prevent similar errors in the future.

Finding Text

Special Tests. Questioned Costs: $64. Condition: A student's first disbursement date was 10/25/24 but their award letter date appears to be 5/30/25. Upon further investigation, the student's unsubsidized loan needed to be prorated based on how many hours the student was taking as it was their last term before graduation. When the loan amount granted was prorated, the calculation was rounded instead of the required truncating which resulted in the loan amount awarded being too high by $64. Criteria: Per the Student Financial Assistance Program Compliance Supplement, November 2025, the Special Test compliance requirement "disbursements to or on behalf of students", the College must provide notification to the student of the amount and type of Title IV funds they are expected to receive and how and when disbursements will be made before the disbursement is made and that the disbursement amount complied with the requirements for allowable current year and prior year charges. Cause: The discrepancy was caused by an oversight during the percentage calculation process (rounding vs truncating). Effect: The College awarded a student $64 more in unsubsidized loans than was allowable. Recommendation: We recommend that supplemental training be provided to financial aid employees. View of Responsible Officials: Management acknowledges the finding and has prepared a corrective action plan. Anticipated Date of Completion: June 30, 2026

Corrective Action Plan

The Financial Aid office conducted a comprehensive internal review in Spring 2025 to verify that our procedures were consistently followed. As a result, management corrected a student’s loan proration calculation to be consistent with current practices, regarding truncating rather than rounding the fractional percentage (decimal) of loan eligibility for students receiving one-semester loans in their last semester of study. Management corrected the loan proration calculation in accordance with current procedures, and the loan amount was adjusted accordingly, resulting in the institution returning $64 in Federal Unsubsidized loan funds to Federal Student Aid. The student was eligible only for unsubsidized loans. Person(s) Responsible: Angela Weaver Timing for Implementation: November 21, 2025

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1169260 2025-001
    Material Weakness Repeat
  • 1169261 2025-002
    Material Weakness Repeat
  • 1169262 2025-003
    Material Weakness Repeat
  • 1169263 2025-004
    Material Weakness Repeat
  • 1169264 2025-001
    Material Weakness Repeat
  • 1169265 2025-002
    Material Weakness Repeat
  • 1169266 2025-003
    Material Weakness Repeat
  • 1169267 2025-004
    Material Weakness Repeat
  • 1169268 2025-001
    Material Weakness Repeat
  • 1169269 2025-002
    Material Weakness Repeat
  • 1169270 2025-003
    Material Weakness Repeat
  • 1169271 2025-004
    Material Weakness Repeat
  • 1169272 2025-001
    Material Weakness Repeat
  • 1169273 2025-002
    Material Weakness Repeat
  • 1169274 2025-003
    Material Weakness Repeat
  • 1169275 2025-004
    Material Weakness Repeat
  • 1169276 2025-001
    Material Weakness Repeat
  • 1169277 2025-002
    Material Weakness Repeat
  • 1169279 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $5.29M
84.268 FEDERAL DIRECT STUDENT LOANS $1.69M
15.611 WILDLIFE RESTORATION AND BASIC HUNTER EDUCATION AND SAFETY $410,517
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $355,517
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $165,875
84.033 FEDERAL WORK-STUDY PROGRAM $120,005
84.047 TRIO UPWARD BOUND $106,866
47.050 GEOSCIENCES $97,743
94.006 AMERICORPS STATE AND NATIONAL 94.006 $85,779
15.634 STATE WILDLIFE GRANTS $83,016
84.044 TRIO TALENT SEARCH $76,624
17.259 WIOA YOUTH ACTIVITIES $66,190
15.657 ENDANGERED SPECIES RECOVERY IMPLEMENTATION $63,922
17.274 YOUTHBUILD $32,250
47.074 BIOLOGICAL SCIENCES $24,647
10.069 CONSERVATION RESERVE PROGRAM $23,177
93.569 COMMUNITY SERVICES BLOCK GRANT $18,418
66.461 REGIONAL WETLAND PROGRAM DEVELOPMENT GRANTS $12,394
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $11,911
12.630 BASIC, APPLIED, AND ADVANCED RESEARCH IN SCIENCE AND ENGINEERING $8,018
15.805 ASSISTANCE TO STATE WATER RESOURCES RESEARCH INSTITUTES $5,372
15.808 U.S. GEOLOGICAL SURVEY RESEARCH AND DATA COLLECTION $4,389