Finding Text
Finding 2025-007 - U.S. Department of Education (ED), Student Financial Assistance Programs – Policy & Procedures Manual (material weakness): Information on the federal program – Major Programs: 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 – Institutions are required to have a current Financial Aid Policy & Procedures Manual to ensure that staff are processing financial aid correctly and in a manner that complies with the Department of Education. CFR 668.34. Condition – We received a 2018-19 copy of the Policy and Procedure Manual, but it was outdated. Cause – This manual has not been updated in over five years. Effect – Not having an updated manual could lead to incorrect processing to student financial assistance funding and not in compliance with transparency requirement. Questioned Costs – $0 Perspective – This is considered a systemic problem given this document is very outdated. Repeat Finding – No. Auditor's Recommendation – The Student Financial Aid Office should update the Policy & Procedures Manual to ensure it meets the current requirements of the Department of Education. Management’s Response – The Office of the Vice President for Enrollment Management and Student Services concurs with this finding. We recognize that the maintenance of a current and comprehensive Policy & Procedures Manual is a fundamental requirement under 34 CFR 668.16 and 34 CFR 668.34 to ensure the consistent and accurate administration of Title IV federal student aid. While the institution maintained operational compliance with Department of Education regulations throughout the audit period, we acknowledge that the formal documentation had not been updated since the 2018-2019 academic year. To address this finding and mitigate any risk of systemic processing errors, the Student Financial Aid Office has completed a comprehensive revision of the Financial Aid Policy & Procedures Manual. • Completion Status: The manual has been fully updated to reflect the 2024- 2026 academic cycles. • Scope: The updated manual incorporates current federal regulations for all major programs, including the Federal Pell Grant, FSEOG, Federal Work-Study, Federal Direct Student Loans, and TEACH Grant programs. • Compliance: The new documentation aligns with the latest Federal Student Aid Handbook guidance and ensures that all institutional policies meet current USDE requirements. To ensure this remains a "one-time" finding rather than a recurring issue, the Financial Aid Director has implemented an Annual Review Protocol. Beginning in June of each year, the manual will undergo a formal review and update cycle to coincide with the release of the new award year’s federal guidelines. View of Responsible Officials – The College agrees with the finding.