Finding 1205058 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-31

AI Summary

  • Core Issue: A student was awarded more need-based aid than allowed, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 673.5, which limits aid to students' calculated financial need.
  • Recommended Follow-Up: Implement a process to ensure accurate cost of attendance calculations to prevent future overawards.

Finding Text

Eligibility Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063 Federal Award Identification Number and Year: N/A Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance; Noncompliance (Other Matters) Criteria or specific requirement: Per the Code of Federal Regulations, 34 CFR 673.5, students may not be awarded need based aid in excess of their calculated need. Condition: Based on our testing, we noted one student who was awarded the wrong amount. Questioned costs: $60 Context: We noted one error in our sample of 40 students tested. Cause: The student’s award was initially miscalculated when the award letter was created. The correction was made during the disbursement process to adjust the Pell amount but a new award letter was never created. Effect: The student’s award exceeded the amount they were eligible for. Repeat Finding: No Recommendation: We recommend that a process be implemented to ensure the proper cost of attendance is used so that amounts awarded do not exceed calculated financial need. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Eligibility Recommendation: We recommend that a process be implemented to ensure the proper cost of attendance is used so that amounts awarded do not exceed calculated financial need. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Actions planned in response to finding: • The Financial Aid Coordinator will ensure that when a correction is made during the disbursement process a new award letter is created • If a change is made, the Financial Aid Coordinator will enter the required information and print out a new award letter and have the student sign the form. After the form is signed by the student, the Financial Aid Coordinator will have an administrator to verify the with signature • One administrator will attend Financial Aid training to one training session to support legal and regulatory compliance Responsible party: Financial Aid Coordinators, Administrators, Workforce Finance Department Planned completion date for corrective action plan: April 30, 2026 Plan to monitor completion of corrective action plan: The Financial Aid Coordinators, Administrators, and Workforce Finance Department will conduct a monthly review to confirm that revised award letters are issued, signed, verified, and properly documented.

Categories

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205057 2025-002
    Material Weakness Repeat
  • 1205059 2025-004
    Material Weakness Repeat
  • 1205060 2025-005
    Material Weakness Repeat
  • 1205061 2025-006
    Material Weakness Repeat
  • 1205062 2025-007
    Material Weakness Repeat
  • 1205063 2025-008
    Material Weakness Repeat
  • 1205064 2025-009
    Material Weakness Repeat
  • 1205065 2025-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $56.56M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $54.79M
84.027 SPECIAL EDUCATION GRANTS TO STATES $32.98M
10.553 SCHOOL BREAKFAST PROGRAM $15.30M
93.600 HEAD START $10.53M
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $5.95M
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $4.40M
84.063 FEDERAL PELL GRANT PROGRAM $3.27M
84.165 MAGNET SCHOOLS ASSISTANCE $2.63M
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $2.01M
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $1.97M
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $1.69M
84.011 MIGRANT EDUCATION STATE GRANT PROGRAM $1.16M
12.U01 ARMY JUNIOR RESERVE OFFICERS TRAINING CORPS $1.14M
10.558 CHILD AND ADULT CARE FOOD PROGRAM $923,921
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $623,396
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $484,444
17.264 NATIONAL FARMWORKER JOBS PROGRAM $311,815
84.425 EDUCATION STABILIZATION FUND $276,635
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $213,228
12.U03 AIR FORCE JUNIOR RESERVE OFFICERS TRAINING CORPS $115,714
21.019 CORONAVIRUS RELIEF FUND $85,491
12.U02 MARINE CORPS JUNIOR RESERVE OFFICERS TRAINING CORPS $81,921
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $74,944
12.U04 NAVY JUNIOR RESERVE OFFICERS TRAINING CORPS $64,147
84.282 CHARTER SCHOOLS $21,752