Finding Text
Eligibility U.S. Department of Education Student Financial Aid Cluster: ALN: 84.063 Pell Grant ALN: 84.007 Supplemental Educational Opportunity Grant ALN 84.033 Federal Work Study ALN 84.038 Federal Perkins Loan Program ALN 84.268 Federal Direct Student Loans Criteria: The 2024-2025 Federal Student Aid Handbook, Vol 2, Chapter 3, states that the Financial Aid Administrator must be supported by an adequate number of professional and clerical personnel. The number of staff that is adequate depends on the number of students aided, the number and types of programs in which the school participates, the number of applicants evaluated and processed, the number of funds administered, and the type of financial data delivery system the school uses. Internal controls that pertain to Eligibility include the accuracy and completeness of data used to determine eligibility requirements, which are reviewed and agreed to support as necessary by staff and reviewed by a knowledgeable supervisor. Manual checklists or automated processes used when making eligibility determinations are reviewed and approved by a knowledgeable supervisor. Calculations of amounts to be received for or on behalf of participants are reperformed by a knowledgeable supervisor. Segregation of duties exists between those determining a participant’s eligibility and those reviewing/approving eligibility. Condition: During the audit period, an additional staff member was hired to assist the Financial Aid Director. However, the awarding of financial aid award packages completed by the Financial Aid Director were not reviewed. Context: The University did hire a financial aid staff member to assist with packaging; however, the Financial Aid Director continued to handle the majority of the workload. The staff member subsequently left the University following the June 20, 2025 year-end. Effect: With only one staff member performing the packaging process, this does not provide adequate internal controls over the Eligibility requirement. Questioned Costs: None. Cause: The University has made efforts to hire and train support staff for the Financial Aid Director. However, no alternative control procedures were implemented to address the issue of having only one person involved with the awarding process. Auditor Recommendation: We recommend the University enhance the system of internal control for Eligibility and award packaging determinations. University Response: The University understands the need to have adequate staffing in financial aid that allows for a separate review of financial aid packaging. The University is looking at the options of both hiring staff and working with a firm that provides financial aid assistance in order to enhance the system of internal controls for determination of financial aid eligibility and to review financial aid packaging prepared by staff.