Finding 369074 (2022-003)

- Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-02-14
Audit: 290469
Organization: Wheeling Jesuit University INC (WV)

AI Summary

  • Core Issue: The University overawarded Title IV funds, violating federal regulations by exceeding students' cost of attendance.
  • Impacted Requirements: Title IV regulations (34 CFR 685.203) require that loan amounts must not exceed the student's estimated cost of attendance minus financial aid and family contributions.
  • Recommended Follow-Up: Revise financial aid procedures and strengthen controls to prevent future overawards, ensuring accurate calculations and eligibility checks.

Finding Text

Finding 2022-003 - Overaward of Title IV Funds Repeat of Prior Year Finding 2021-008 Federal Program - Federal Direct Loan Program Federal Agency - U.S. Department of Education Assistance Listing Number - 84.268 Federal Award Year - June 30, 2022 Criteria: Title IV regulations (34 CFR 685.203) states in no case may Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan amount exceed the student's estimated cost of attendance for the period of enrollment for which the loans were intended, less (1) the student's estimated financial assistance for that period and (2) the borrower's expected family contribution for that period. Condition: During testing we noted two instances where the University awarded a Direct Unsubsidized loan to a student that caused the student's financial assistance received to be greater than the student's cost of attendance. Cause: Lack of competency and turnover in the financial aid office contributed to the University not being able to correctly calculate the cost of attendance for one student, and erroneously awarding aid to a student who should not have received any aid. Effect: The students received Title IV awards in excess of amounts they were eligible to receive. Questioned Costs: One student was awarded $7,998 in excess of eligible Title IV funds. Context: For 1 of 40 students, the University did not correctly calculate the cost of attendance. For 1 of 40 students the University awarded funds to an ineligible student. The sample was not a statistically valid sample. Recommendation: The University should revise its procedures for awarding Student Financial Aid, including Federal Direct Loans, to ensure that aid is awarded correctly and that controls are in place to prevent overawards of Title IV funds. Management's Response: Management agrees with this finding and has recognized their need for a qualified individual who is knowledgeable about financial aid requirements.

Corrective Action Plan

FINDING 2022 – 003: Repeat of Prior Year Finding 2021-008 Name of Responsible Individual: Joyce Lubeck-Sonenberg, Acting Director of Financial Aid Type of Finding: Overaward of Title IV Funds Criteria: Title IV regulations (34 CFR 685.203) states in no case may Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan amount exceed the student’s estimated cost of attendance for the period of enrollment for which the loans were intended, less (1) the student’s estimated financial assistance for that period and (2) the borrower’s expected family contribution for that period. Condition: During testing the auditors noted two instances where the University awarded a Direct Unsubsidized loan to a student that caused the student’s financial assistance received to be greater than the student’s cost of attendance. Corrective Action: At the time of these findings, all Wheeling University Financial Aid processing operations were being conducted manually. The high level of complexity commonly associated with financial aid processing creates an environment, especially when conducted in a manual format, that is error-intrinsic. Packaging and awarding for each of the federal student aid programs are currently conducted by using the student information system, Colleague, which allows the FA office to perform these processing operations in a fully automated manner. Proper use of the “auto-packaging” feature provides significant assurance that student awards will not exceed financial need based on Cost of Attendance (COA) and Estimated Family Contribution (EFC). Previous audit findings have noted a general lack of accuracy, organization, and documentation regarding the final figure for the COA, which can result in packaging and over-award errors. As such, the Acting Director of Financial Aid has completely extensively researched and input data into the system with an accurate, fair, and equitable formula for arriving at a COA while meeting student need and, consequently, reducing or eliminating the potential for over-awards. This data was obtained from state and local cost of living figures, input from other similar state schools, and by use of the higher education organization, the College Board. This data is available as a reference for future documentation and review in a shared electronic file. Anticipated Completion Date: This process was completed in March of 2023 and is ongoing.

Categories

Questioned Costs Student Financial Aid Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 369070 2022-005
    Material Weakness Repeat
  • 369071 2022-005
    Material Weakness Repeat
  • 369072 2022-006
    Significant Deficiency
  • 369073 2022-002
    Significant Deficiency Repeat
  • 369075 2022-004
    -
  • 369076 2022-006
    Significant Deficiency
  • 369077 2022-007
    Significant Deficiency Repeat
  • 369078 2022-007
    Significant Deficiency Repeat
  • 369079 2022-008
    -
  • 369080 2022-008
    -
  • 369081 2022-009
    - Repeat
  • 369082 2022-009
    - Repeat
  • 945512 2022-005
    Material Weakness Repeat
  • 945513 2022-005
    Material Weakness Repeat
  • 945514 2022-006
    Significant Deficiency
  • 945515 2022-002
    Significant Deficiency Repeat
  • 945516 2022-003
    - Repeat
  • 945517 2022-004
    -
  • 945518 2022-006
    Significant Deficiency
  • 945519 2022-007
    Significant Deficiency Repeat
  • 945520 2022-007
    Significant Deficiency Repeat
  • 945521 2022-008
    -
  • 945522 2022-008
    -
  • 945523 2022-009
    - Repeat
  • 945524 2022-009
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.17M
84.038 Federal Perkins Loan Program $1.27M
84.063 Federal Pell Grant Program $882,038
93.859 Biomedical Research and Research Training $243,170
84.425 Education Stabilization Fund $178,333
84.007 Federal Supplemental Educational Opportunity Grants $118,500
84.033 Federal Work-Study Program $94,730
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,088
93.364 Nursing Student Loans $2,025