Finding Text
U.S. Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing Number(s): 84.063, 84.007, 84.268, 84.033, 84.038, 84.379 Compliance Requirement: Eligibility Type of Finding: Material Weakness in Internal Control over Compliance and Non-Compliance Criteria: Under 34 CFR 690.63 and 685.200, institutions must calculate Pell grant and federal direct loan awards based on the student’s eligible enrollment status, cost of attendance, expected family contribution (EFC) or student aid index (SAI), satisfactory academic progress, and other Title IV eligibility requirements. Institutions are required to ensure award amounts are accurate and supported by the documentation in the student’s file. Condition: During our testing of 60 students, we found two students who were not awarded the correct amount of Pell, one student who was not awarded the correct amount of federal direct loans, and two students who received subsidized direct loans however did not meet the requirements to receive the need based aid. Cause: The process for awarding financial aid did not detect the incorrect awarding of Pell awards and federal direct loans. Effect: Two students were under awarded Pell for a total of $2,464, one student was over awarded federal direct loans of $4,871, and two students who were overawarded need based subsidized direct loans of $2,511. Questioned Costs: None reported. Context/Sampling: Nonstatistical sample of 60 students receiving financial aid out of 2,351 total students receiving financial aid. Total Pell and direct loans tested were $179,310 and $164,361, respectively. Repeat Finding from Prior Year(s): No Recommendation: the University should have a control or process in place to ensure Pell indicators are properly flagged for each student requesting financial aid, and that students receive the full award for which they qualify. Views of Responsible Officials: Management agrees with the finding.