Finding Text
2022-003 ? Subsidized Loans Awarded to Student without Financial Need Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Eligibility). Program. Student Financial Aid Cluster; CFDA Numbers 84.007, 84.033, 84.063, 84.268. Criteria. The University is responsible for ensuring only students with financial need receive direct subsidized loans. Condition. The University provided a direct subsidized loan to a student without financial need. Cause. This condition appears to have been caused by management not reviewing the student's information prior to processing financial aid. Effect. As a result of this condition, the University did not fully comply with student financial aid eligibility requirements. Questioned Costs. The amount of known questioned costs identified is below the required reporting threshold of $25,000. Recommendation. We recommend that management review their current practices and policies for reviewing student information to provide the correct type of financial aid to students. View of Responsible Officials. Management agrees with the finding. See corrective action plan.