Finding Text
2023-005 Eligibility
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Assistance Listing No. 84.063, 84.268
Federal Award Identification Number and Year: P063P218567-2023, P268K228567-2023
Award Periods: 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 Regulations (34 CFR 668.34) Satisfactory academic progress. An institution must establish a reasonable satisfactory academic progress policy for determining whether an otherwise eligible student is making satisfactory academic progress in his or her educational program and may receive assistance under the title IV, HEA programs. The Secretary considers the institution's policy to be reasonable if:
(1) Provide a policy that, if at the time of each evaluation, the student has not achieved the required GPA, is not successfully completing their program of study at the required pace (if required), or has not completed the program within the maximum time frame, they no longer are eligible for Title IV aid;
(2) Provides specific procedures for disbursements to students on financial aid warning status or financial aid probation status;
(3) If the institution permits the student to appeal a determination, provides specific procedures how the student may reestablish eligibility to receive Title IV; basis on which a student may file an appeal; and information that the student must submit regarding why they failed satisfactory academic progress and how they have changed that will now allow the student to make satisfactory academic progress at the
next evaluation;
(4) If the institution does not permit the student to appeal a determination, describes how a student may reestablish their eligibility to receive Title IV assistance; and
(5) Provides for notification to the students of their results of an evaluation that impacts their eligibility for Title IV.
Condition: Of the sixty (60) students tested for eligibility, one (1) student was on suspension status after the Spring 2022 semester due to not meeting the 67% completion rate and continued to fall below the completion rate in Fall 2022 and Spring 2023 semesters. Student did not receive a letter of suspension because they were meeting the GPA requirement and the Financial Aid office was not assessing completion status. The student's account showed a SAP status of Suspension for the 3 semesters; however, the student did not receive a letter of suspension or submit an appeal to continue to receive Aid.
Questioned Costs: None.
Context: Of the sixty (60) students tested for eligibility, one (1) student was on suspension status after the Spring 2022 semester due to not meeting the 67% completion rate and continued to fall below the completion rate in Fall 2022 and Spring 2023 semesters. Student did not receive a letter of suspension because they were meeting the GPA requirement and the Financial Aid office was not assessing completion status. The student's account showed a SAP status of Suspension for the 3 semesters; however, the student did not receive a letter of suspension or submit an appeal to continue to receive Aid.
Cause: The College did not have the appropriate resources and staffing in place to verify they were in compliance with all requirements.
Effect: Failure to properly assess student's SAP status based on the policy may result in students receiving funds they are no longer qualified for.
Repeat findings: N/A
Recommendation: We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements.
Views of Responsible Officials: There is no disagreement with the audit finding.