Finding 384984 (2023-004)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-03-26
Audit: 298024
Auditor: Blue & CO LLC

AI Summary

  • Core Issue: The Seminary lacks proper documentation for the cost of attendance, affecting financial need calculations for students.
  • Impacted Requirements: Students must meet eligibility criteria, including accurate cost of attendance, to ensure financial aid does not exceed their needs.
  • Recommended Follow-Up: Management should update procedures to ensure cost of attendance for part-time students is documented in the student management software.

Finding Text

MATERIAL WEAKNESS, Documentation of Cost of Attendance, Information on the federal program: U.S. Department of Education, Assistance Listing No. 84.268; Federal Direct Student Loan Program, Criteria: Students awarded financial aid must meet eligibility requirements including having financial need and total awards that do not exceed that need. Condition: The Seminary did not maintain documentation of accurate cost of attendance used to calculate financial need. Context: Out of a population of 50 students who received aid under the student financial aid cluster, we sampled 10. Within this sample, three of these students were less than full-time. Within their student record, their cost of attendance was noted at the full-time student rate. None of these students received aid in excess of need based on a reduced cost of attendance. Questioned Costs: None Cause: Manual calculations of need are being performed but are not documented within the student management software. Effect: Documentation of cost of attendance within student records is not accurate which could lead to incorrect calculation of need and award of funding. Recommendation: We recommend that management adjust its procedures to document within the student management software the cost of attendance for students who attend less than full-time. Views of responsible officials and planned corrective actions: Management acknowledges this finding and is working on documenting the review of students once they change their status. The calculations are occurring but are not being documented in the system of record.

Corrective Action Plan

Planned Corrective Action: The Director of Financial Aid will document the review of students that change academic status (full time vs part time) and determine if any adjustments need to be made to the students Cost of Attendance as a result of the change. The Director of Financial Aid will document this review and note any changes that were made as a result. If no changes are necessary, this will be documented as well Person Responsible for Corrective Action Plan: Sandra Mitchell Holder, Director of Financial Aid Anticipated Completion Date June 2024

Categories

Eligibility Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 384982 2023-002
    Material Weakness
  • 384983 2023-003
    Material Weakness
  • 961424 2023-002
    Material Weakness
  • 961425 2023-003
    Material Weakness
  • 961426 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $802,407
84.425 Education Stabilization Fund $28,283
84.033 Federal Work-Study Program $4,323