Finding Text
Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster ALN: 84.268 Award Period: June 1, 2024 through May 31, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.203(a) outline the maximum subsidized and unsubsidized loan amounts for students based on their dependency status, year of education, and other factors. Condition: During our testing of 40 students, we noted one instance where the Subsidized Stafford loan awarded to the student was over the maximum amount they were eligible for. Questioned Costs: None over $10,000. Context: The College did not have procedures in place to detect this over award. Cause: The College did not appropriately calculate the student’s Subsidize Stafford Loan award. Effect: The student was awarded incorrectly as they were not eligible for the specific awarded amount. Repeat Finding: No. Recommendation: We recommend the College evaluate its procedures and a policy around how Subsidized Stafford loans are calculated, awarded, and packaged. Views of Responsible Officials: There is no disagreement with the audit finding.