Finding 36548 (2022-002)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-03-30
Audit: 27232
Organization: Woodbury University (CA)
Auditor: Moss Adams LLP

AI Summary

  • Core Issue: A student received $5,550 in federal aid exceeding their cost of attendance due to a manual packaging error.
  • Impacted Requirements: Compliance with federal guidelines on need-based and total aid limits was not met, as outlined in the Federal Student Aid Handbook.
  • Recommended Follow-Up: Implement additional reviews for manually packaged aid to ensure compliance and prevent future overawards.

Finding Text

Finding: 2022-002 - Eligibility - Significant Deficiency in the Internal Control Over Compliance: SEE SCHEDULE OF FINDINGS AND QUESTION COSTS FOR CHART/TABLE - Criteria: 2021-2022 Federal Student Aid Handbook, volume 3, chapter7: Depending on individual circumstance, students may receive only need-based aid, non-need-based aid, or a combination of need-based and non-need-based aid. The total amount of need-based aid cannot exceed the student's financial need and the total amount of all aid cannot exceed the student's cost of attendance. - Condition/context: A sample of 48 federal aid recipient students were selected from system generated reports of 790 students who were disbursed federal student aid during the 2021-2022 academic year. The student's records were inspected. - Effect: An exception was noted whereby one student was awarded aid in excess of their cost of attendance which resulted in an over award of $5,550 of federal direct subsidized loans. - Cause: The student was over awarded due to a weakness in the University's manual packaging process. The standard packaging process is done automatically. When the packaging is performed automatically there are triggers in the process that prevent over awarding. In the case of this student, it was done manually, and those checks and balances were never activated, because of this there was not flag to stop the awarding. - Repeat finding: This is not a repeat finding. - Recommendation: We recommend the University amend procedures so in teh event that packaging is done manually, there are added reviews over the student's aid awarded. - View of responsible officials and planned corrective actions: We accept Moss Adams' recommendation and if a situation arises where we must manually package a student, the procedure will include an additional review by another individual, either the Director or a Counselor, to review the package for accuracy.

Corrective Action Plan

Finding 2022-002 - Eligibility - Significant Deficiency in Internal Control Over Compliance - Recommendation: We recommend the University amend procedures so in the event that packaging is done manually, there are added reviews over the student's aid awarded. - Corrective Action Plan: We accept Moss Adams' recommendation and if a situation arises where we must manually package a student, the procedure will include an additional review by another individual, either the Director or a Counselor, to review the package for accuracy. An internal review of FY22 indicated this was an isolated incident. - Anticipated Completion Date: Management will complete the Corrective Action Plan by June 30, 2023. - Individual Responsible: Oscar Jones, Director of Financial Aid.

Categories

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

Other Findings in this Audit

  • 612990 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.84M
84.063 Federal Pell Grant Program $2.45M
84.425 Education Stabilization Fund Covid-19 Higher Education Emergency Relief Fund (institutional Portion) $2.18M
84.425 Education Stabilization Fund Covid-19 Higher Education Emergency Relief Fund (student Portion) $1.60M
84.031 Higher Education Institutional Aid $1.42M
84.038 Federal Perkins Loan Program (beginning of the Year) $1.05M
84.425 Education Stabilization Fund Covid-19 Higher Education Emergency Relief Fund (minority Serving Institutions) $232,186
84.007 Federal Supplemental Educational Opportunity Grants $221,261
84.033 Federal Work-Study Program $146,543
84.038 Federal Perkins Loan Program (current Year Distributions) $0