Finding 24049 (2022-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: A student received more aid than allowed, violating federal loan limits.
  • Impacted Requirements: Compliance with 34 CFR 685.203(a) regarding loan amounts based on dependency and education status.
  • Recommended Follow-Up: Implement stronger policies and procedures to ensure accurate loan eligibility determinations.

Finding Text

2022-001 Federal Agency: Department of Education Federal Program Title: Federal Direct Loan Program Assistance Listing Number: 84.268 Award Period: July 1, 2021, through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.203(a) outlines the maximum subsidized and unsubsidized loan amounts for students based on their dependency status, year of education, and other factors. Condition: We identified 1 student that received aid more than their respective cost of attendance. Questioned costs: Known costs of approximately $7,312. Context: Instances of noncompliance noted above in our sample of 60 students tested. Cause: Consistent turnover in the financial aid office within recent years had likely led to a disconnect with regard to controls in place to appropriately package and review students' financial aid during this period. Effect: Potential incorrect awarding and unfulfilled financial need of students in similar circumstances. Repeat Finding: Yes ? 2021-002. Recommendation: We recommend that the University ensures they have appropriate policies and procedures, as well as safeguards in place to ensure loan eligibility is correctly determined. Views of responsible officials: There is no disagreement with the audit finding. Management has addressed their corrective action plan in a separately issued letter.

Corrective Action Plan

2022?001 Direct Loan Awarding Federal Direct Student Loans ? Assistance Listing No. 84.268 Auditors? Recommendation: We recommend that the University ensures they have appropriate policies and procedures, as well as safeguards in place to ensure loan eligibility is correctly determined. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Point has completed the following: 1. Extensive training delivered by external vendor, Enrollment Fuel, in October 2022 focusing on financial aid awarding and cost of attendance. 2. Point University has contracted with Financial Aid Services, Inc. (FAS), whose services begin in April 2023. As an approved third-party financial servicing vendor, FAS will conduct student packaging and review to determine appropriate loan amounts are awarded for all degree-seeking students. 3. The institution will be is changing from BBAY to SAY packaging beginning in Fall 2023 for all students. Uniform packaging procedures for all students which will improve accuracy. 4. The institution is transitioning student information system to Ellucian Colleague, which is being configured for more automated packaging, which will reduce manual errors. Name(s) of the contact person(s) responsible for corrective action: Rusty Hassell, Chief Enrollment Officer; Rachal Wortham, Director of Financial Aid Quality and Compliance; Holly Hardnett, Director of Financial Aid Planned completion date for corrective action plan: 1. October 2022 ? training complete 2. April 2023 ? FAS implementation complete 3. August 2023 4. August 2023

Categories

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Eligibility Significant Deficiency

Other Findings in this Audit

  • 24050 2022-002
    Material Weakness Repeat
  • 24051 2022-003
    Material Weakness Repeat
  • 24052 2022-004
    Material Weakness Repeat
  • 24053 2022-002
    Material Weakness Repeat
  • 24054 2022-003
    Material Weakness Repeat
  • 24055 2022-004
    Material Weakness Repeat
  • 24056 2022-002
    Material Weakness Repeat
  • 24057 2022-003
    Material Weakness Repeat
  • 24058 2022-004
    Material Weakness Repeat
  • 24059 2022-002
    Material Weakness Repeat
  • 24060 2022-003
    Material Weakness Repeat
  • 24061 2022-004
    Material Weakness Repeat
  • 600491 2022-001
    Significant Deficiency Repeat
  • 600492 2022-002
    Material Weakness Repeat
  • 600493 2022-003
    Material Weakness Repeat
  • 600494 2022-004
    Material Weakness Repeat
  • 600495 2022-002
    Material Weakness Repeat
  • 600496 2022-003
    Material Weakness Repeat
  • 600497 2022-004
    Material Weakness Repeat
  • 600498 2022-002
    Material Weakness Repeat
  • 600499 2022-003
    Material Weakness Repeat
  • 600500 2022-004
    Material Weakness Repeat
  • 600501 2022-002
    Material Weakness Repeat
  • 600502 2022-003
    Material Weakness Repeat
  • 600503 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.61M
84.063 Federal Pell Grant Program $2.25M
84.425 Education Stabilization Fund $1.95M
84.007 Federal Supplemental Educational Opportunity Grants $138,638
84.033 Federal Work-Study Program $18,144