Finding Text
Information on Federal Program ‒ SFA Cluster Criteria – Consistent with the requirements of 2 CFR Part 200, Subpart F, Part 3, the auditor is required to test internal controls related to major programs. The specific procedures to test internal control on a caseby- case basis considering factors such as the non-federal entity’s internal controls, the compliance requirements, the audit objectives for compliance, the auditor’s assessment of control risk, and the audit requirement to test internal controls. Condition – During our Controls testing of University awarding and billing procedures, we noted the following: For 5 students out of 40 sampled, from a population of 3,115 students who received financial aid, the University incorrectly calculated the Cost of Attendance (COA). As a result of the incorrect COA, 1 student was overawarded for classes during the summer semester. The University refunded the Department of Education $400 due to the overaward. Cause – Management oversight and insufficient internal controls in the awarding procedures, resulting in 1 student being overawarded. Effect – The University was not in compliance with refund requirements as the University owes the Department of Education a refund for the overawarded amount. Questioned Costs – $400 Context – For 5 students out of 40 sampled, the University’s system overawarded based on an incorrect cost of attendance being used within the students awarding calculation. Indication of a Repeat Finding – This is a new finding in 2025. Recommendation – We recommend the University ensure its internal controls, policies, and procedures are followed on a consistent basis regarding the awarding of federal aid. Views of Responsible Officials – See corrective action plan.