Finding 386309 (2023-005)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-03-27
Audit: 298705
Organization: Marymount University (VA)

AI Summary

  • Core Issue: A student was awarded a subsidized Stafford loan exceeding the maximum allowable amount.
  • Impacted Requirements: This finding violates federal regulations on loan limits as outlined in 34 CFR 685.203(a).
  • Recommended Follow-Up: The University should review and improve its procedures for determining students' education levels when awarding financial aid.

Finding Text

2023–005: Over-Award of Financial Aid Federal agency: U.S. Department of Education Federal program title: Student Financial Aid Cluster Assistance Listing Number: 84.268 Award Period: July 1, 2022 through 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. Condition/Context: During our testing, we noted 1 instance out of 25 students tested where the subsidized Stafford loan awarded to the student was over the maximum amount they were eligible for. Questioned Costs: $1,000 Cause: The University did not appropriately determine the student's level of education when awarding the Subsidized Stafford Loan. Effect: Those students that were over-awarded subsidized loans were awarded incorrectly as they were not eligible for the specific awarded amount. Repeat Finding: No Recommendation: We recommend the University evaluate its procedures and a policy around how level of education is determined and verified when packaging and awarding students. Views of responsible officials: Please refer to the attached corrective action plan.

Corrective Action Plan

Recommendation: We recommend the University evaluate its procedures and a policy around how level of education is determined and verified when packaging and awarding students. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Marymount University experienced high turnover in the Office of Financial Aid from the Director down to the counselor position in the 22-23 academic year. In that transition, Attain partners was contracted in late 2022 as interim staffing. For the one student in the finding that was found to have received a grade level 3 loan instead of level 2 based on the number of credits completed, research found that a rule setting in Ellucian Colleague caused the student to be auto-packaged at level 3 and it was accepted and disbursed in COD (Common Origination & Disbursement). Moving forward, Attain Partners will work with Marymount IT to update any rule settings to catch this issue and provide the Marymount Financial Aid office with internal controls that will catch any issues for the current aid year. Management notes that this issue arose due to a software programming error tied to an updated rule setting in Ellucian Colleague. Moving forward staff in Financial Aid will work in tandem with colleagues in Information Technology to review all updated rule setting in order to catch and address potential miscalculations. Name(s) of the contact person(s) responsible for corrective action: Meghan Sutton, Interim Director of Financial Aid, 703.284.1532 Planned completion date for corrective action plan: May 2024

Categories

Questioned Costs Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 386303 2023-002
    Significant Deficiency
  • 386304 2023-003
    Significant Deficiency
  • 386305 2023-004
    Significant Deficiency
  • 386306 2023-002
    Significant Deficiency
  • 386307 2023-003
    Significant Deficiency
  • 386308 2023-004
    Significant Deficiency
  • 386310 2023-002
    Significant Deficiency
  • 386311 2023-003
    Significant Deficiency
  • 386312 2023-004
    Significant Deficiency
  • 386313 2023-002
    Significant Deficiency
  • 386314 2023-003
    Significant Deficiency
  • 386315 2023-004
    Significant Deficiency
  • 386316 2023-002
    Significant Deficiency
  • 386317 2023-003
    Significant Deficiency
  • 386318 2023-004
    Significant Deficiency
  • 962745 2023-002
    Significant Deficiency
  • 962746 2023-003
    Significant Deficiency
  • 962747 2023-004
    Significant Deficiency
  • 962748 2023-002
    Significant Deficiency
  • 962749 2023-003
    Significant Deficiency
  • 962750 2023-004
    Significant Deficiency
  • 962751 2023-005
    Significant Deficiency
  • 962752 2023-002
    Significant Deficiency
  • 962753 2023-003
    Significant Deficiency
  • 962754 2023-004
    Significant Deficiency
  • 962755 2023-002
    Significant Deficiency
  • 962756 2023-003
    Significant Deficiency
  • 962757 2023-004
    Significant Deficiency
  • 962758 2023-002
    Significant Deficiency
  • 962759 2023-003
    Significant Deficiency
  • 962760 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $34.99M
84.063 Federal Pell Grant Program $2.70M
84.038 Federal Perkins Loan Program $413,760
93.732 Mental and Behavioral Health Education and Training Grants $308,023
47.076 Education and Human Resources $258,860
84.007 Federal Supplemental Educational Opportunity Grants $171,065
84.031 Higher Education_institutional Aid $98,981
84.033 Federal Work-Study Program $83,742
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $20,971
12.903 Gencyber Grants Program $19,684
93.761 Evidence-Based Falls Prevention Programs Financed Solely by Prevention and Public Health Funds (pphf) $668
93.866 Aging Research $376