Finding 1180794 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-18
Audit: 392456
Organization: Quinnipiac University (CT)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: Two students received incorrect allocations of Direct Loans, violating federal eligibility criteria.
  • Impacted Requirements: Compliance with 34 CFR 685.203 regarding proper loan allocation based on financial need.
  • Recommended Follow-Up: Implement periodic quality control reports to improve accuracy in loan allocations.

Finding Text

Finding #2025-001 Compliance – Other Matter and Significant Deficiency in Internal Control Over Compliance Finding - Eligibility - Federal Direct Student Loan Program, Assistance Listing Number 84.268 and Federal Pell Grant Program, Assistance Listing Number 84.063: June 30, 2025 Award Year: U.S. Department of Education Criteria or Specific Requirement Direct Loans are determined based on the criteria noted in 34 CFR 685.203(a),(b),(c). Condition Of the 40 students selected for eligibility testing, two students within the sample had incorrect allocations of Direct Loans based upon their specific circumstances. Cause In one instance, a student was under-awarded Subsidized Direct Loans. The student was awarded the appropriate annual amount of direct loans, however received only unsubsidized direct loans. The student should have been allocated a portion of subsidized loan funds before being awarded all unsubsidized loan funds. In another instance, a student was under-awarded Subsidized Direct Loans. Based on their demonstrated financial need, the student should have received additional subsidized loan funds before being awarded unsubsidized loan funds. Effect The University's processes at the time of the finding did not prevent or detect these instances, thus, the affected students were awarded incorrect allocations of Title IV aid. Questioned Costs None. Identification as a Repeat Finding This is not a repeat finding. Recommendation The University should implement periodic quality control reports to allow for further accuracy checks. Views of Responsible Officials and Corrective Actions See corrective action plan.

Corrective Action Plan

Uniform Guidance Corrective Action Plan Year ended June 30, 2025 Federal Finding #2025-001 Direct Loans are determined based on the criteria noted in 34 CFR 685.203(a),(b),(c). Students should be allocated the appropriate potion of subsidized loan funds before being awarded unsubsidized loan funds. Quinnipiac University agrees with the finding. In one instance, a student was under-awarded Subsidized Direct Loans. The student was awarded the appropriate annual amount of direct loans, however received only unsubsidized direct loans. The student should have been allocated a portion of subsidized loan funds before being awarded all unsubsidized loan funds. In another instance, a student was under-awarded Subsidized Direct Loans. Based on their demonstrated financial need, the student should have received additional subsidized loan funds before being awarded unsubsidized loan funds. As a result of this finding, Management implemented an exception report on December 9th, 2025, that will identify students who were awarded less than their maximum subsidized eligibility but have remaining need eligibility. This report will be run at least monthly to identify those students and will allow for their loans to be revised on a timely basis. In addition, the University is in the process of a software modernization project and while working with software consultants, the University plans to review all processes in accordance with best practice recommendations so that they are designed to meet current regulations. If the Office of Management and Budget have questions regarding this plan, please reach out to Kelly Osorio, University Director of Financial Aid, who is responsible for ensuring this corrective action plan is implemented, at 203-582-7446.

Categories

Student Financial Aid

Other Findings in this Audit

  • 1180793 2025-001
    Material Weakness Repeat
  • 1180795 2025-002
    Material Weakness Repeat
  • 1180796 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $114.30M
84.063 FEDERAL PELL GRANT PROGRAM $8.05M
84.033 FEDERAL WORK-STUDY PROGRAM $1.11M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $1.02M
84.425 CONNECTICUT ROBERTA B. WILLIS SCHOLARSHIP PROGRAM: ARPA SUPPLEMENT $460,980
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $207,463
21.008 LOW INCOME TAXPAYER CLINICS $105,136
10.435 STATE MEDIATION GRANTS $94,392
09.U25 LEGAL FELLOWSHIP TO SUPPORT FEDERAL PRO SE LEGAL ASSISTANCE PROGRAM (FPSLAP) $76,738
93.855 ALLERGY AND INFECTIOUS DISEASES RESEARCH $65,843
84.425 G4EEP Grant $45,811
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $40,686
47.084 NSF TECHNOLOGY, INNOVATION, AND PARTNERSHIPS $37,549
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $31,467
93.155 RURAL HEALTH RESEARCH CENTERS $29,889
59.059 CONGRESSIONAL GRANTS $14,988
47.050 GEOSCIENCES $11,761
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $9,508