Finding Text
Finding 2025-001 - U.S. Department of Education (ED), Student Financial Assistance Programs – Satisfactory Academic Progress (material weakness): Information on the federal program – Federal Pell Grant Program, FAL No. 84.063, June 30, 2025; Federal Supplemental Opportunity Grant Program, FAL No. 84.007, June 30, 2025; Federal Work-Study Program, FAL No. 84.033, June 30, 2025; Federal Direct Student Loan Program, FAL No. 84.268, June 30, 2025; Federal Teacher Education Assistance for College (TEACH), FAL No. 84.379, June 30, 2025 Criteria – An institution must establish a reasonable satisfactory academic progress policy for determining whether an otherwise eligible student is making satisfactory academic progress in his or her educational program and may receive assistance under the Title IV, HEA programs. 34 CFR 668.34. Condition – We observed that 16 out of 60 students did not meet Satisfactory Academic Progress (SAP) for the Fall and Spring semesters. The College did not provide supporting documentation for successful appeals and allowed the students to receive Title IV student financial assistance funding. Cause – SAP was not properly monitored during the semester by responsible persons. This appears to have been an oversight. Effect – Ineligible students may have received Title IV federal student financial assistance funds. Questioned Costs – $346,764. Perspective – This is considered a systemic problem given the 16 exceptions noted from the sample of 60 students. Repeat Finding – Yes. Auditor's Recommendation – The College should evaluate all students at least annually to ensure they meet satisfactory academic progress. The frequency of the evaluation should be consistent with approved policies and procedures. This prevents ineligible students from possibly receiving Title IV federal student financial aid. Management’s Response – Tougaloo College acknowledges the findings identified in the audit for the fiscal year ending June 30, 2025, regarding Finding 2025-001 (Material Weakness). We recognize the gravity of the systemic issues related to the monitoring of Satisfactory Academic Progress (SAP) and the associated questioned costs of $346,764.00. The College is committed to full compliance with 34 CFR 668.34 and is implementing the following corrective actions to ensure the integrity of our Title IV Student Financial Aid Programs. • Automation and System Integration: The College is transitioning from manual SAP monitoring to an automated tracking system within our Student Information System (SIS). This will ensure that academic standing—specifically GPA and completion rates are calculated systematically at the end of each payment period. • Audit of Appeal Documentation: We are establishing a centralized digital repository for all SAP appeals. Effective immediately, no Title IV funds will be disbursed to students on financial aid probation without a documented, approved appeal and a corresponding academic plan on file. • Staff Training and Accountability: The Office of Financial Aid will undergo mandatory training focused specifically on federal SAP criteria. We have revised our internal "Check and Balance" protocol, requiring a secondary review by the Director of Financial Aid before any student failing SAP is cleared for disbursement. • Annual Policy Review: In alignment with the Auditor’s Recommendation, Tougaloo College will conduct a comprehensive annual evaluation of all students. This evaluation will be reconciled against the Registrar’s records to ensure data consistency. • We have updated our SAP policy to allow us to review at end of each Spring . The College has already begun the look-back process to review the eligibility of the 16 students identified in the sample. We anticipate that the new automated monitoring and revised internal controls will be fully operational by the start of the Spring 2026 semester to prevent any further repeat findings. View of Responsible Officials – The College agrees with the finding.