Finding 387355 (2023-003)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299541
Organization: Georgian Court University (NJ)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University failed to accurately calculate the Cost of Attendance (COA) for some students, impacting their eligibility for Title IV aid.
  • Impacted Requirements: This oversight violates federal regulations regarding the coordination of aid to ensure it does not exceed a student’s financial need or COA.
  • Recommended Follow-Up: Enhance internal controls and policies to ensure accurate COA calculations and provide staff retraining on updated processes for awarding Title IV aid.

Finding Text

Federal Program Information: Federal Supplemental Educational Opportunity Grants (ALN: 84.007), Federal Work-Study Program (ALN: 84.033), Federal Pell Grant Program (ALN: 84.063), Federal Direct Student Loans (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): E. Eligibility – Calculation of Benefits – Awards must be coordinated among the various programs and with other federal and nonfederal aid (need and non-need based aid) to ensure that total aid is not awarded in excess of the student’s financial need or cost of attendance (“COA”) (34 CFR 668.42, FWS, and FSEOG, 34 CFR 673.5 and 673.6; Direct Loan, 34 CFR 685.301). For Title IV programs, the COA is generally the sum of the following: tuition and fees; an allowance for books, supplies, transportation, and miscellaneous personal expenses; an allowance for room and board; when applicable, allowances for costs for dependent care; costs associated with study abroad and cooperative education; costs related to disabilities; and fees charged for student loans. Condition: For certain students identified through our testing, the University did not properly calculate the student’s COA. Cause: Administrative oversight and lack of sufficient internal controls with respect to Title IV aid award eligibility. Effect or Potential Effect: The University is not in compliance with aid awarding criteria under the eligibility requirements. Failure to properly determine students’ COAs and calculate eligible award amounts could result in improper disbursements of Title IV funds. Questioned Costs: None. Context: For 16 of 25 students selected for testing, the University either did not properly calculate the student’s COA or was unable to support the components of the student’s COA that was used for awarding and disbursing Title IV aid. For all students noted with COA issues, we determined that there were no overawards of federal and nonfederal aid. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the University enhance its policies, procedures and internal controls to ensure that Title IV aid is properly calculated, awarded and disbursed, consistent with federal regulations. Views of Responsible Officials and Planned Corrective Actions: For the 2023-2024 academic year Cost of Attendance Budgets were reviewed and tested to correct any miscalculations and omissions. Pell Budgets were updated to correctly differentiate program tuition and fees. Testing for 2024-2025 academic year has been updated and reviewed to accurately calculate Cost of Attendance Budgets. In some of the findings it was later found that due to changes made in the student’s record, the record should have run through the dynamic redetermination process to update the budget. The staff has been retrained in this process. The process for summer periods of enrollment has been reviewed and revised to flag students who initially applied and or registered for summer classes and subsequently did not register or dropped the classes during the add/drop period and the summer period of enrollment remained, thereby calculating a Cost of Attendance for summer.

Corrective Action Plan

Contact Person: Cynthia McCarthy, Director of Financial Aid Corrective Action: For the 2023-2024 academic year Cost of Attendance Budgets were reviewed and tested to correct any miscalculations and omissions. Pell Budgets were updated to correctly differentiate program tuition and fees. Testing for 2024-2025 academic year has been updated and reviewed to accurately calculate Cost of Attendance Budgets. In some of the findings it was later found that due to changes made in the student’s record, the record should have run through the dynamic redetermination process to update the budget. The staff has been retrained in this process. The process for summer periods of enrollment has been reviewed and revised to flag students who initially applied and or registered for summer classes and subsequently did not register or dropped the classes during the add/drop period and the summer period of enrollment remained thereby calculating a Cost of Attendance for summer. Anticipated Completion Date: January 3, 2024

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.66M
84.063 Federal Pell Grant Program $2.50M
84.407 Transition Programs for Students with Intellectual Disabilities Into Higher Education $500,723
84.042 Trio_student Support Services $317,464
84.033 Federal Work-Study Program $163,042
84.007 Federal Supplemental Educational Opportunity Grants $125,816
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $66,936
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $19,331