FAC Explorer

Finding 35905 (2022-003)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-13
Audit: 38070
Organization: Lyon College (AR)
Auditor: Williams-Keepers LLC

AI Summary

  • Core Issue: Two students received incorrect financial aid packages, leading to over-awards of federal loans.
  • Impacted Requirements: Compliance with the Federal Student Aid Handbook and 34 CFR 668.59 regarding FAFSA changes was not met.
  • Recommended Follow-Up: Develop and implement policies to ensure proper review and packaging of student financial aid.

Finding Text

Finding 2022-003: Policies and Procedures Related to Packaging Student Financial Aid ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant?s FAFSA Information, if an applicant?s FAFSA information changes, the student?s financial aid package should be recalculated. Effect of Condition: We found two (2) instances where students financial aid was incorrectly packaged. One (1) student was over-awarded a federal direct subsidized loan and one (1) student was over-awarded a federal direct subsidized loan. Cause of Condition: The College does not have a policy in place to review the packaging of student financial aid. The College also does not have a policy in place to review FAFSA information changes for the repackaging of student financial aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.

Categories

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 35902 2022-002
    Significant Deficiency
  • 35903 2022-003
    Significant Deficiency
  • 35904 2022-002
    Significant Deficiency
  • 35906 2022-002
    Significant Deficiency
  • 35907 2022-003
    Significant Deficiency
  • 35908 2022-002
    Significant Deficiency
  • 35909 2022-003
    Significant Deficiency
  • 35910 2022-002
    Significant Deficiency
  • 35911 2022-003
    Significant Deficiency
  • 612344 2022-002
    Significant Deficiency
  • 612345 2022-003
    Significant Deficiency
  • 612346 2022-002
    Significant Deficiency
  • 612347 2022-003
    Significant Deficiency
  • 612348 2022-002
    Significant Deficiency
  • 612349 2022-003
    Significant Deficiency
  • 612350 2022-002
    Significant Deficiency
  • 612351 2022-003
    Significant Deficiency
  • 612352 2022-002
    Significant Deficiency
  • 612353 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.07M
84.063 Federal Pell Grant Program $1.05M
84.047 Trio_upward Bound $464,403
84.033 Federal Work-Study Program $102,778
84.425 Education Stabilization Fund $84,702
93.859 Biomedical Research and Research Training $79,607
84.007 Federal Supplemental Educational Opportunity Grants $57,712
43.008 Education $14,706
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $7,544
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $5,057
15.808 U.s. Geological Survey_ Research and Data Collection $800