Finding 36117 (2022-001)

- Repeat Finding
Requirement
EN
Questioned Costs
$1
Year
2022
Accepted
2022-12-22
Audit: 31077
Organization: Mount Mercy University (IA)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: A student received a TEACH grant without meeting the required GPA, leading to improper disbursement.
  • Impacted Requirements: Noncompliance with 34 CFR 686.11, which mandates a minimum GPA of 3.25 for grant eligibility.
  • Recommended Follow-Up: Management should enhance policies and controls to ensure proper verification of student eligibility for TEACH grants.

Finding Text

2022-001 U.S. Department of Education Student Financial Assistance Program Cluster Teacher Education Assistance for College and Higher Education Grants (TEACH Grants) (Federal Assistance Listing Number 84.379) Federal Award Year: 2021-2022 Finding: A student was improperly awarded and disbursed a TEACH grant. This is a repeat finding of 2021-005. Criteria: Per 34 CFR 686.11, (a)(1)(iv)(B), ?If the student is beyond the first year of a program of undergraduate education as determined by the institution, a cumulative undergraduate GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent, through the most-recently completed payment period.? Condition: An undergraduate student was improperly awarded and disbursed a TEACH grant that did not meet the GPA requirements to be eligible. Cause: The student was awarded and disbursed the TEACH grant without verifying that the student had an eligible GPA. Effect: Noncompliance with federal regulations of the TEACH grant program. Context: One of six students that received the TEACH grant. All recipients of grant were tested. Questioned costs: Over award of $3,772 in TEACH grant funds. Recommendation: Management should review its awarding policies and controls to verify eligibility determination for TEACH grants are in compliance with federal regulations.

Corrective Action Plan

Identifying Number: 2022-001 Finding: A student was improperly awarded and disbursed a TEACH grant. Corrective Actions Taken or Planned: In April 2021, Financial Aid Staff collected TEACH Grant counseling for two academic years (20-21 and 21-22) at the same time and awarded the grant for both academic years based on the GPA as of that date. The student was eligible for 20-21, but at the end of the 20-21 academic year, their GPA had dropped below the 3.25 requirement, making them ineligible for the grant in 21-22. The Financial Aid Staff did not double check the GPA after 20-21. The TEACH Grant was refunded to the Department on 6/30/22. An additional step was added to our manual that requires all TEACH Grants set up prior to the first origination will be double-checked to verify eligibility. Persons Responsible and Completion Date: Mark Freed, Director of Financial Aid, June 30, 2022

Categories

Questioned Costs Eligibility

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.76M
84.063 Federal Pell Grant Program $1.92M
84.038 Federal Perkins Loan Program, Beginning Loan Balance $503,126
84.031 Higher Education_institutional Aid $337,614
84.425 Education Stabilization Fund $306,286
84.033 Federal Work-Study Program $171,603
84.007 Federal Supplemental Educational Opportunity Grants $131,144
93.264 Nurse Faculty Loan Program (nflp) $116,351
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,088