Finding 1312 (2023-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2023-11-07

Audit: 2445

Organization: Union College (NE)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: A student received $817 more in financial aid than allowed, violating federal regulations.
Impacted Requirements: Aid must not exceed calculated need or estimated costs as per 34 CFR 673.5 and 34 CFR 685.203(j).
Recommended Follow-Up: The College should establish a review process for student awards at the start of each academic year to prevent overawards.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid ALN Number: Student Financial Aid Cluster Award Period: June 01, 2022 through May 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Per the Code of Federal Regulations, 34 CFR 673.5, students may not be awarded need based aid in excess of their calculated need. In addition, 34 CFR 685.203(j) states that in no case may a loan amount exceed the student’s estimated cost of attendance for the period of enrollment for which the loan is intended less the student’s estimated financial assistance for that period and in the case of Direct Subsidized Loans, the borrower’s expected family contribution for that period. Condition: Based on our testing, we noted one student who was disbursed $817 more than they were awarded. Questioned Costs: $817 Context: One student was disbursed more Title IV aid than they were awarded. Cause: The College disbursed one students Title IV aid that was greater than their awarded amount. Effect: Students may be awarded need based aid in excess of their calculated need. Repeat finding: No Recommendation: We recommend the College implement policies to review all student award packages at the start of the academic year to ensure no overawards exist. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

College Work Study – Assistance Listing No. 84.033 Recommendation: We recommend the College implement policies to review all student award packages at the start of the academic year to ensure no overawards exist. View of responsible officials: There is no disagreement with the audit finding. Action taken in response to finding: The Federal Work Study (FWS) earnings are tracked in the payroll department and reported to Student Financial Services (SFS) on a monthly basis. In November 2022, Union College hired a new Payroll Accountant who failed to provide FWS earnings to SFS after her hire date. Had SFS been notified of the actual amount the student earned, the department would have increased the award. The Controller in the Accounting office is aware of the lack of competence in this position, and took steps to ensure this finding does not come up in future years. A new Payroll Accountant was hired in October 2023. The new employee has many years of higher-education experience, including work with financial award packages. The Controller believes this will be a positive change for the Accounting office, and believes this finding will be eliminated in FY24. Name(s) of the contact person(s) responsible for corrective action: Steve Trana, VP for Financial Administration Planned completion date for corrective action plan: October 31, 2023

Other Findings in this Audit

1310 2023-002

Significant Deficiency
1311 2023-002

Significant Deficiency
577752 2023-002

Significant Deficiency
577753 2023-002

Significant Deficiency
577754 2023-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.268	Federal Direct Student Loans	$6.44M
84.063	Federal Pell Grant Program	$1.07M
84.038	Federal Perkins Loan Program - Beginning Balance	$909,201
93.364	Nursing Student Loans	$263,182
84.033	Federal Work-Study Program	$145,190
84.007	Federal Supplemental Educational Opportunity Grants	$138,396
84.038	Federal Perkins Loan Program - Loans Issued	$0