Finding 37642 (2022-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-01-22

AI Summary

  • Core Issue: Two students received FSEOG funding despite having an expected family contribution greater than $0, indicating potential noncompliance with eligibility criteria.
  • Impacted Requirements: The College failed to award FSEOG funds according to the Uniform Guidance, which prioritizes aid for students with the lowest expected family contributions.
  • Recommended Follow-Up: Continue updating documentation procedures in the Student Financial Aid Department to ensure compliance and prevent future issues.

Finding Text

FINDING 2022-002 ? CONTROLS AND NONCOMPLIANCE OVER ELIGIBILITY AND DISBURSEMENT Federal Department: Department of Education Assistance Listing Number(s):84.063 Program Name(s): Student Financial Aid Cluster Questioned Costs: $500 Criteria Per the Uniform Guidance Compliance Supplement, Federal Suppleental Educational Opportunity Grants (FSEOG) are awarded first to Pell receipts who have the lowest expected family contributions. If an institution has FSEOG funds remaining after giving FSEOG awards to all the Federal Pell Grant recipients at the institution, the institution shall award the remaining FSEOG funds to those eligible students with the lowest expected family contributions who will not receive Federal Pell Grants. Condition During our compliance testing two students received FSEOG funding while having an expected family contribution greather than $0, which would indicate that other Pell receipients had potential need but were not awarded aid. Questioned Costs The known questioned costs were determined by obtaining the amount of FSEOG financial aid that the students were awarded per the College?s student financial aid population. Context The College could not locate documentation to support the reason these students were judgementally awarded the FSEOG funds. Effect There is a possibility that the students who received financial aid were not actually eligible for the amounts received. Cause The cause appears to be an error in the processing of the file documentation would include support for why the FSEOG award was granted even though the student did not have the lowest possible expected family contribution. Identification as a Repeat Finding, if Applicable This is a partial repeat finding. This was reported in the prior year as finding 2021-002. Recommendation We are aware that the Student Financial Aid Department is undergoing updates to its procedures regarding documentation retention. We recommend that the College continue these efforts to ensure future compliance with all applicable documentation requirements. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.

Corrective Action Plan

SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONS COSTS FINDING 2022-002 ? CONTROLS AND NONCOMPLIANCE OVER ELIGIBILITY AND DISBURSEMENT Management?s Response The College accepts this finding and will continue to undergo updates in procedures regarding documentation retention. Plan SSC Student Financial Aid is in the process of developing an electronic document retention system. In the meantime, all documents are being retained in student files via hardcopy format under the supervision of the Manager. Each Friday the Manager (Coordinator in the absence of Manager) and Director audit files of students receiving FSEOG to verify document retention. Additionally, the College is implementing a Colleague rule to prevent disbursement of FSEOG to any student who does not have a $0 EFC. This is in addition to the existing rule that requires a student to be receiving a Federal Pell Grant in order to have a Federal SEOG disbursement paid to their College account. Anticipated Date of Completion 1/1/2023 Name of Contact Person Avianca Taylor

Categories

Questioned Costs Student Financial Aid Eligibility

Other Findings in this Audit

  • 37643 2022-001
    Material Weakness Repeat
  • 37644 2022-001
    Material Weakness Repeat
  • 37645 2022-001
    Material Weakness Repeat
  • 614084 2022-002
    Material Weakness Repeat
  • 614085 2022-001
    Material Weakness Repeat
  • 614086 2022-001
    Material Weakness Repeat
  • 614087 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $615,346
84.048 Career and Technical Education -- Basic Grants to States $485,036
84.002 Adult Education - Basic Grants to States $375,280
17.259 Wia Youth Activities $208,431
84.007 Federal Supplemental Educational Opportunity Grants $148,225
84.382 Strengthening Minority-Serving Institutions $137,181
93.093 Affordable Care Act (aca) Health Profession Opportunity Grants $113,017
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $81,872
20.205 Highway Planning and Construction $70,867
17.258 Wia Adult Program $70,373
17.278 Wia Dislocated Worker Formula Grants $56,768
84.033 Federal Work-Study Program $50,543
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $18,992
84.063 Federal Pell Grant Program $6,035
93.495 Community Health Workers for Public Health Response and Resilient $2,103