Finding Text
Audit Finding Reference Number Questioned Cost
2022 – 008 – Aid in Excess of Documented Need $47,586
Federal Program and Specific Federal Award Identification
CFDA Title and Number
84.063 Federal PELL Grant Program (PELL)
84.268 Federal Direct Student Loans (Direct)
84.007 Federal Supplemental Educational Opportunity Grant (FSEOG)
84.033 Federal Work-Study (FWS)
Federal Award Number
June 30, 2022
Federal Agencies
U.S. Department of Education
Pass-Through Entity
Not applicable
Criteria
Uniform Guidance Compliance Supplement, Part 5 Section E (Eligibility) specified that the annual award should be calculated based upon certain factors and coordinated among all programs to ensure that the total aid is not awarded in excess of the student’s financial need.
Title IV regulations, Section(s) 673.5, 682.603, and 685.301 state that an institution may not award financial aid to a student if the aid, when combined with other resources, exceeds the student’s financial need.
Conditions and Contexts
During my audit I noted eleven (11) students out of seventy-one (71) tested received financial aid in excess of their documented need.
Cause
It appears that ABC did not properly monitor the awarding and disbursing of financial aid to certain students.
Questioned Costs
For purposes of this condition, I have questioned costs totaling $47,586 relating to the Direct loan program.
Effect
The failure of ABC to consider all available resources resulted in the over awarding of financial aid.
Repeat Finding
No.
Recommendation
I recommend that ABC adhere to established procedures and ensure that the total financial aid received by students does not exceed their documented need.