Finding Text
2022 ? 007: Students Not Properly Classified by Grade Level 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: Direct Subsidized Loans and Direct Unsubsidized Loans have annual loan limits that vary based on the student's grade level and (for Direct Unsubsidized Loans) dependency status (34 CFR 685.203). The annual loan limit is the maximum amount that a student may receive for an academic year. Condition: The University misclassified the students grade level resulting in the maximum annual loan limit being incorrectly applied. Questioned costs: There are no questioned costs. Context: We noted four (4) out of forty (40) students selected for testing where the inappropriate grade level was used to determine the maximum annual loan limit in accordance with the stated criteria. Cause: The University?s internal controls failed to detect the misclassification of students in the appropriate grade level in accordance with the stated criteria. Effect: The University failed to comply with the stated criteria. Repeat Finding: No Recommendation: We recommend that the University review its processes and procedures related to determining the grade level of the student for determining the Subsidized Direct Loans and Unsubsidized Direct Loan amounts. Views of responsible officials: There is no disagreement with the audit finding..