Finding 388294 (2023-001)

-
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-03-28
Audit: 300086
Organization: Georgetown College (KY)

AI Summary

  • Core Issue: Two students were over awarded TEACH Grant funds due to human error, violating federal regulations.
  • Impacted Requirements: Compliance with 36 CFR Section 686.21(a)(2)(ii) regarding aggregate TEACH Grant limits.
  • Recommended Follow-Up: Implement procedures to regularly review TEACH Grant disbursements to prevent future overawards.

Finding Text

Federal Program: U.S. Department of Education: TEACH Grant Criteria: The University must comply with 36 CFR Section 686.21(a)(2)(ii). Condition: We tested five TEACH Grant recipients for eligibility, and noted that one sample received over the aggregate amount of TEACH allowed over the student's academic career. The College performed additional analysis and noted that one other TEACH recipient had been over awarded. Cause: Two students were over disbursed the amount of TEACH Grant they were allowed to receive over their graduate academic career due to human error. Effect: The provisions of 36 CFR Section 686.21(a)(2)(ii) was not followed and thus two students were over disbursed the amount of TEACH Grant they were allowed to receive over their graduate academic career. Questioned Costs: The aggregate limit of TEACH grant allowed for the student selected was $8,000 and the student had received $8,464 of TEACH grant funds throughout their academic career, resulting in $464 of questioned costs. The College identified one additional student resulting in an additional $700 of questioned costs. Recommendation: We recommend the College implement procedures and review the aggregate amount of TEACH Grant disbursed to all students to verify the student is not over disbursed. View of Responsible Officials:

Corrective Action Plan

A. Comments on the Finding and Recommendations: The College concurs with this isolated finding for two students in the sample. Auditor recommendation: We recommend the College implement procedures and review the aggregate amount of TEACH Grant disbursed to all students to verify the student is not over disbursed. B. Actions Taken or Planned: The College will follow the auditor's recommendation and review the current procedures to reduce the risk of human error. The College will implement a tracking mechanism for TEACH Grant awards to monitor the award limit statuses for students throughout their enrollment period. Training will be provided to the financial planning staff regarding the awarding and maximum eligibility for TEACH Grants. Additionally, the third-party servicer will perform internal control reviews during each pay period to verify accurate awarding of the TEACH Grant.

Categories

Questioned Costs Eligibility Special Tests & Provisions

Other Findings in this Audit

  • 388295 2023-002
    Significant Deficiency
  • 388296 2023-003
    Significant Deficiency
  • 388297 2023-003
    Significant Deficiency
  • 964736 2023-001
    -
  • 964737 2023-002
    Significant Deficiency
  • 964738 2023-003
    Significant Deficiency
  • 964739 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.91M
84.063 Federal Pell Grant Program $2.07M
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $307,910
84.038 Federal Perkins Loan Program $303,861
84.425 Education Stabilization Fund $233,207
84.007 Federal Supplemental Educational Opportunity Grants $136,800
84.033 Federal Work-Study Program $123,505