FAC Explorer

Finding 385627 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-27
Audit: 298342
Organization: Missouri Valley College (MO)
Auditor: Williams-Keepers LLC

AI Summary

  • Core Issue: Four students received incorrect financial aid packages, specifically being under-awarded federal direct subsidized loans.
  • Impacted Requirements: The College failed to comply with federal guidelines for disbursing loans and recalculating aid based on FAFSA changes.
  • Recommended Follow-Up: Ensure adherence to policies and procedures for financial aid packaging and implement a Corrective Action Plan promptly.

Finding Text

Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.

Corrective Action Plan

Corrective Actions: *Conduct a comprehensive review of the policies and procedures related to packaging student financial aid. Ensure that the guidelines for awarding federal direct loans align with the Federal Student Aid Handbook, Volume 3. *Utilize the newly implemented Ellucian Colleague software that is integrated with all offices directly involved with any facet of Title IV (registrar and billing) to follow a systematic process to review and verify student financial aid packages for accuracy. Establish protocols for identifying and rectifying instances of under-awarding federal direct subsidized loans. *Utilize Federal Student Aid training programs and other options for financial aid staff to enhance their understanding of federal regulations governing financial aid packaging. Emphasize the significance of recalculating aid packages when there are changes in FAFSA information to prevent under-awarding situations. *Create a standardized procedure for tracking and documenting FAFSA information changes and the subsequent adjustments made to financial aid packages. This will ensure transparency and accountability in the repackaging process. *Address the issue of turnover within the Financial Aid Department by implementing measures to enhance continuity and knowledge transfer. Document key processes and responsibilities to mitigate the impact of staff changes on financial aid operations. *Conduct regular internal training to ensure compliance with federal regulations and the effectiveness of the revised policies and procedures. Make adjustments as needed based on audit findings to maintain accuracy in financial aid packaging. By following these corrective actions, the College can mitigate the identified deficiencies in financial aid packaging and improve overall compliance with federal regulations. Completion Date: All actions listed above have been completed as of 03/01/2024.

Categories

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 385628 2023-002
    Significant Deficiency
  • 385629 2023-001
    Significant Deficiency
  • 385630 2023-002
    Significant Deficiency
  • 385631 2023-001
    Significant Deficiency
  • 385632 2023-002
    Significant Deficiency
  • 385633 2023-001
    Significant Deficiency
  • 385634 2023-002
    Significant Deficiency
  • 385635 2023-001
    Significant Deficiency
  • 385636 2023-002
    Significant Deficiency
  • 962069 2023-001
    Significant Deficiency
  • 962070 2023-002
    Significant Deficiency
  • 962071 2023-001
    Significant Deficiency
  • 962072 2023-002
    Significant Deficiency
  • 962073 2023-001
    Significant Deficiency
  • 962074 2023-002
    Significant Deficiency
  • 962075 2023-001
    Significant Deficiency
  • 962076 2023-002
    Significant Deficiency
  • 962077 2023-001
    Significant Deficiency
  • 962078 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.53M
84.063 Federal Pell Grant Program $2.48M
93.493 Community Services Block Grant $623,395
21.027 Coronavirus State and Local Fiscal Recovery Funds $578,839
84.116 Fund for the Improvement of Postsecondary Education $172,960
84.007 Federal Supplemental Educational Opportunity Grants $141,410
84.033 Federal Work-Study Program $91,008
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $5,772