Finding 1186641 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-25
Audit: 394339
Organization: Sterling College (KS)

AI Summary

  • Core Issue: A student received a Pell Grant despite not attending the College, leading to an over-award of $3,697.
  • Impacted Requirements: Noncompliance with eligibility criteria outlined in 34 CFR 668.32 for Title IV aid.
  • Recommended Follow-Up: Improve the review process for financial aid to ensure only eligible students receive awards, and provide compliance training for staff.

Finding Text

Eligibility Type of Finding - Noncompliance with Eligibility compliance requirement and significant deficiency in internal control over compliance Program: Student Financial Assistance Cluster Assistance Listing Number: Federal Pell Grant 84.063 Federal Agency: U.S. Department of Education Criteria – 34 CFR 668.32 provides regulations to institutions for eligibility requirements for students to receive Title IV aid. 34 CFR 668.32 states that the student must be a regular student enrolled, or accepted for enrollment, in an eligible program at an eligible institution. Condition – One student was awarded a Pell grant for the Spring 2025 semester when the student did not attend the College during the Spring 2025 semester. This resulted in an over-award of $3,697. Cause – The internal controls over the review of awarded assistance was not effective at preventing or detecting and correcting noncompliance with the requirements. Effect – Incorrect award amounts could go undetected resulting in an under or over-award of student financial aid. Questioned Costs – $3,697 for a Federal Pell recipient that was not eligible. Context – One student out of a sample of 40 students was over-awarded aid. Identification as a Repeat Finding – Not Applicable. Recommendation – It is recommended the College refine the review of financial assistance prior to packaging control to identify those students who did not ultimately attend prior to disbursing aid. Views of Responsible Official – Management concurs with the finding and is providing those responsible for compliance with appropriate education on the compliance requirements. The College is reviewing the processes and controls and will make changes as necessary to prevent and/or detect and correct noncompliance on a timely basis.

Corrective Action Plan

Contact person responsible for correction action – Mitzi Suhler, Financial Aid Director Anticipated completion date – June 30, 2025 Corrective action Sterling College agrees with the finding. At the time of noncompliance the college was transitioning to a new financial aid system. The compliance engine of the new system was set up but there was a gap in the compliance which allowed aid for students who were not enrolled to post without warning. The issue was found by the financial aid administrators and corrected as soon as it was discovered. Upon finding the issues, the financial aid administrators reached out to the IT department for more training on the compliance portion of the software and have worked diligently to update the system and put in place processes that will ensure that aid is canceled for students that are not enrolled. The system also has compliance setup to ensure checks and balances are in place to look for students who are eligible to receive aid and will not post aid for students who are not enrolled even if the aid has not been canceled before the official disbursement date.

Categories

Student Financial Aid Eligibility Significant Deficiency

Other Findings in this Audit

  • 1186642 2025-002
    Material Weakness Repeat
  • 1186643 2025-003
    Material Weakness Repeat
  • 1186644 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $4.01M
84.063 FEDERAL PELL GRANT PROGRAM $1.64M
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $115,215
84.033 FEDERAL WORK-STUDY PROGRAM $57,976
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $50,818
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $19,803