Finding 3719 (2023-002)

- Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2023-12-08

AI Summary

  • Core Issue: A student received federal loans exceeding the undergraduate aggregate limit due to a staffing turnover.
  • Impacted Requirements: This violates 34 CFR 685.203 (d),(e) regarding eligibility for federal loans.
  • Recommended Follow-Up: Review all students flagged on ISIRs for aggregate loan limits before disbursing loans to ensure eligibility.

Finding Text

Aggregate Loan Limits Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 22-23 Financial Aid Year Condition: A student had received federal direct loans in excess of the undergraduate level aggregate limit and was disbursed graduate level federal direct loans by the University. Criteria: 34 CFR 685.203 (d),(e) Questioned Costs: $166 Context: Out of 60 tested for eligibility and disbursement, 1 student had been flagged on their ISIR for exceeding the subsidized loan limit but the student was still awarded subsidized loans in excess of $23,000. This has been corrected in August 2023 during the audit. Cause: Turnover in staffing. The University failed to resolve the ISIR aggregate loan limit eligibility code prior to disbursing aid. Effect: The student received $166 in subsidized loans that they were not eligible to receive. Identification as repeat finding, if applicable 2022-002 Recommendation: We recommend that the University review all students flagged on their ISIR’s for being close to aggregate loan limits before disbursing federal loans to ensure the student is eligible. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Aggregate Loan Limits Planned Corrective Action: ·The financial aid leadership team (Director and Associate Director) will review the current awarding loan processes to determine where the deficiencies are to ensure this issue does not reoccur next year. ·The financial aid leadership team will review the setup to configure automation and minimize manual processes to catch student approach loan limits ·The financial aid team will review NSLDS when students are flagged for approaching loan limits to verify remaining eligibility. Person Responsible for Corrective Action Plan: Kary Tejeda-Executive Director of Financial Aid and Veteran Services, Elisa Fisher-Associate Director of Financial Aid Operations and Dr. Anthony Turner-Vice President of Enrollment and Marketing Anticipated Date of Completion: March 15, 2024

Categories

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

Other Findings in this Audit

  • 3717 2023-001
    Material Weakness
  • 3718 2023-001
    Material Weakness
  • 580159 2023-001
    Material Weakness
  • 580160 2023-001
    Material Weakness
  • 580161 2023-002
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $22.74M
84.063 Federal Pell Grant Program $5.04M
84.038 Federal Perkins Loan Program $1.25M
84.033 Federal Work-Study Program $371,157
84.007 Federal Supplemental Educational Opportunity Grants $271,919
84.425 Covid - 19 Education Stabilization Fund Heerf - Student Aid Portion $23,903