Finding 1201476 (2025-006)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396041
Organization: William Peace Universirty (NC)

AI Summary

  • Core Issue: A student received a Direct Subsidized Loan without demonstrating the required financial need.
  • Impacted Requirements: This violates CFR 685.200(2)(i) regarding financial need for Title IV funding.
  • Recommended Follow-Up: The University should create stronger policies to ensure compliance with financial need criteria before awarding Title IV funds.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.268 Federal Award Identification Number: P268K251946 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: In accordance with CFR 685.200(2)(i), a Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act. Condition: A student received a Direct Subsidized Loan that did not demonstrate financial need. Questioned Costs: N/A Context: This condition occurred for one out of forty students. Cause: The University’s controls over the awarding of the appropriate aid based off need were not functioning as designed. Effect: A student received Title IV funding for which they were not eligible. Repeat Finding: Yes, 2024-007 Recommendation: We recommend the University establish additional policies to ensure all students meet the financial need criteria before awarding Title IV funds. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.

Corrective Action Plan

Direct Loan Overaward Recommendation: We recommend the University establish additional policies to ensure all students meet the financial need criteria before awarding Title IV funds. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review existing procedures and modify as needed to ensure compliance with this recommendation.. Name(s) of the contact person(s) responsible for corrective action: Director of Financial Aid Deniesha Newby Planned completion date for corrective action plan: June 30, 2026

Categories

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1201470 2025-004
    Material Weakness Repeat
  • 1201471 2025-004
    Material Weakness Repeat
  • 1201472 2025-004
    Material Weakness Repeat
  • 1201473 2025-004
    Material Weakness Repeat
  • 1201474 2025-005
    Material Weakness Repeat
  • 1201475 2025-005
    Material Weakness Repeat
  • 1201477 2025-007
    Material Weakness Repeat
  • 1201478 2025-007
    Material Weakness Repeat
  • 1201479 2025-008
    Material Weakness Repeat
  • 1201480 2025-009
    Material Weakness Repeat
  • 1201481 2025-009
    Material Weakness Repeat
  • 1201482 2025-009
    Material Weakness Repeat
  • 1201483 2025-009
    Material Weakness Repeat
  • 1201484 2025-010
    Material Weakness Repeat
  • 1201485 2025-010
    Material Weakness Repeat
  • 1201486 2025-010
    Material Weakness Repeat
  • 1201487 2025-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $4.21M
84.063 FEDERAL PELL GRANT PROGRAM $1.80M
84.033 FEDERAL WORK-STUDY PROGRAM $44,956
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $37,339
84.425 EDUCATION STABILIZATION FUND $8,266