Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.007 – Federal Supplemental Education Opportunity Grants
84.033 – Federal Work Study Program
84.038 – Federal Perkins Loans
84.063 – Federal Pell Grant Program
84.268 – Federal Direct Student Loans
84.379 – Teacher Education Assistance for College and Higher Education Grants
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2022 to June 30, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.203(a) outline the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors. In addition, the Code of Federal Regulations, 34 CFR 673.5, states students may not be awarded need based aid in excess of their calculated need.
Condition: During our testing, we noted that one of 40 students tested was over awarded subsidized direct loan funds and one of 40 students tested was under awarded subsidized direct loan funds.
Questioned Costs: $1,321
Context: The University had instances where they over and under awarded there students due to not evaluating the status of the students each semester.
Cause: Lack of controls around awarding with in SFA.
Effect: There are questioned costs of $1,321.
Repeat Finding: No
Auditor’s Recommendation: We recommend the University evaluate the students’ status each semester.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.