Finding Text
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program and Federal Work Study Program ALN and Program Expenditures: 84.268 ($6,424,016) and 84.033 ($ 138,030) Award Number: P268K232030 and P033A223400 Federal Award Year: July 1, 2022 to June 30, 2023 Questioned Costs: $1,145 (ALN 84.033) Condition Found: Need-based Title IV financial aid exceeded students’ eligibility for four of the sixty students in our sample. Criteria: Need-based Title IV financial aid is limited to a student’s cost of attendance less their expected family contribution and other Non-title IV financial aid received. Cause: Need-based Title IV financial aid was not limited to the calculation listed in the criteria section. Possible Asserted Effect: The effect for each student was as follows: The first student received $2,000 of subsidized federal direct loans that the student was ineligible to receive. The second student received $382 of subsidized federal direct loans that the student was ineligible to receive. The third student received $1,649 of subsidized federal direct loans that the student was ineligible to receive. The fourth student received $1,145 of federal work study that the student was ineligible to receive. Repeat Finding: There was not a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The recommendation for each student is as follows: For the first student, $2,000 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the second student, $382 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the third student, $1,649 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the fourth student, $1,145 of federal work study funds should be returned to the Department of Education. The funds should be replaced with institutional funds. Management Response: The Financial Aid Director recalculated the “need” for each student in question. The Financial Aid Director agreed with the auditor’s calculations. The following corrections were made on August 8, 2023: For the first student, $2,000 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the second student, $382 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the third student, $1,649 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the fourth student, $1,145 of federal work study funds were returned to the Department of Education. The student had already worked for the University and earned the funds in question. He was treated as a regular employee of the University and paid with institutional funds instead of federal work study funds.