Finding 1221730 (2025-005)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-06-30
Audit: 405985
Organization: Newberry College (SC)
Auditor: CAPINCROUSE LLC

AI Summary

  • Core Issue: Students were not awarded the correct amounts for Federal Direct Loans and Pell Grants due to management oversight.
  • Impacted Requirements: Non-compliance with 34 CFR 685.200, leading to questioned costs of $4,916.
  • Recommended Follow-Up: Implement periodic reports in the student information system to monitor for over or under awarding of federal aid.

Finding Text

Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268—Federal Direct Student Loans and 84.063—Federal Pell Grant Program Federal Award Identification #: 2024-2025 Financial Aid Year Condition: Students were not properly awarded Federal Direct Loans and Pell grant amounts based on their eligibility. Criteria: 34 CFR 685.200 Questioned Costs: $4,916 Context: Out of 60 students tested for proper need analysis, 2 students were over awarded Federal Direct Loans by $4,916. One student did not have need for Subsidized Loans and the other student was not registered for a term when they received both Subsidized and Unsubsidized Loans. There were an additional 2 students who were under awarded $4,916 in Pell Grant based on their enrollment intensity. These amounts were corrected during the audit. Cause: Oversight by management. Effect: Students were not disbursed the correct amount of federal aid based on their eligibility. Identification as repeat finding, if applicable: 2024-004 Recommendation: We recommend that the College set up reports in the student information system to periodically check for over or under awarding of need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Need Analysis Planned Corrective Action: Management acknowledges the audit finding related to errors in need analysis, including instances of over-awarded Federal Direct Loans and under-awarded Pell Grants. These errors were the result of deficiencies in oversight and review processes within the Financial Aid Office during the audit period. The identified discrepancies have been corrected. To address this issue, the College has implemented significant changes within the Financial Aid Office, including elevating leadership to the Assistant Vice President (AVP) level and hiring experienced, qualified staff. These changes strengthen both technical expertise and supervisory capacity. Additionally, the College has enhanced review procedures related to awarding, including increased oversight of need analysis calculations and enrollment verification prior to disbursement. These measures are intended to improve accuracy and ensure compliance with Title IV requirements. Management believes these corrective actions have addressed the root causes of the finding and will continue to monitor awarding processes to ensure ongoing compliance. Person Responsible for Corrective Action Plan: Missy Perry, AVP for Financial Aid Anticipated Date of Completion: June 30, 2026

Categories

Student Financial Aid Eligibility Significant Deficiency

Other Findings in this Audit

  • 1221725 2025-003
    Material Weakness Repeat
  • 1221726 2025-003
    Material Weakness Repeat
  • 1221727 2025-004
    Material Weakness Repeat
  • 1221728 2025-004
    Material Weakness Repeat
  • 1221729 2025-005
    Material Weakness Repeat
  • 1221731 2025-006
    Material Weakness Repeat
  • 1221732 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $29.97M
84.268 FEDERAL DIRECT STUDENT LOANS $11.54M
84.063 FEDERAL PELL GRANT PROGRAM $5.60M
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $503,965
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $116,601
84.033 FEDERAL WORK-STUDY PROGRAM $97,788
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $15,088