Finding Text
2022 ? 005: Over Awarding of Need Based Aid Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.268 Federal Award Identification Number and Year: P268K222439-2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: In determining loan amounts for Direct Subsidized Loans, the financial aid administrator subtracts from the COA, the EFC, and the estimated financial assistance for the period of enrollment that the student (or parent on behalf of the student) will receive from federal, state, institutional or other sources. Condition: The University provided Direct Subsidized loans in excess of the allowable amount to students who had scholarships from eligible local sources that should have reduced the amount awarded. Questioned costs: The finding resulted in known questioned costs of $6,537. Context: We noted two (2) out of forty (40) students selected for testing where the individuals were over awarded Direct Subsidized Loans due to the exclusion of scholarships from local sources as identified in the stated criteria. Cause: The University?s internal controls failed to detect the exclusion of scholarships from local sources in the calculation of the Direct Subsidized Loan amount awarded to eligible students. Effect: The University over awarded students who received Direct Subsidized Loans based on the stated criteria. Repeat Finding: No Recommendation: We recommend the University update its awarding process for Direct Subsidized Loans. Views of responsible officials: There is no disagreement with the audit finding.