FAC Explorer

Finding 1214765 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-05-15
Audit: 401488
Organization: Carolina University (NC)
Auditor: HAYNES DOWNARD LLP

AI Summary

  • Answer: The University needs to improve controls on aggregate loan limits to prevent issues with student disbursements.
  • Trend: Current system controls and NSLDS integrations may not be adequately validated after updates, increasing risk.
  • List: Recommended actions include validating system controls, documenting reviews of aggregate balances, enhancing monitoring procedures, and providing additional staff training.

Finding Text

The University should strengthen controls over aggregate loan limits by ensuring system controls and NSLDS integrations are validated after updates and by implementing a documented review of aggregate balances prior to disbursement for students nearing limits. Management should also consider enhanced monitoring procedures, including supervisory review for higher-risk disbursements and additional staff training.

Corrective Action Plan

Management acknowledges the finding related to student eligibility and internal controls over Direct Loan aggregate limits and agrees that enhancements are necessary to ensure full compliance with federal requirements.

Categories

Student Financial Aid Subrecipient Monitoring Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $2.76M
84.063 FEDERAL PELL GRANT PROGRAM $1.21M
84.033 FEDERAL WORK-STUDY PROGRAM $66,702
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $49,740