FAC Explorer

Finding 391126 (2023-003)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-04-01
Audit: 301715
Organization: Sioux Falls School District 49-5 (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: A student was overawarded loans due to not considering the Build Dakota Scholarship in the eligibility calculation.
  • Impacted Requirements: Compliance with 34 CFR section 685 regarding accurate loan award calculations.
  • Recommended Follow-Up: Review eligibility for the Build Dakota Scholarship to ensure accurate determination of loan assistance.

Finding Text

2023-003 Department of Education Student Financial Aid Cluster CFDA # 84.268 – Federal Direct Student Loans 2022-2023 Award Year Eligibility – Calculation of the Amount of Subsidized and Unsubsidized Direct Loan Assistance Awarded Significant Deficiency in Internal Controls over Compliance and Noncompliance Criteria: 34 CFR section 685 provides the applicable criteria and guidance on awards under the Federal Direct Student Loans Program. Condition: During testing over the eligibility requirements, the following deficiency was noted: • 1 student of 61 students tested was not awarded the correct amount of subsidized loan and unsubsidized loan. Cause: The School District did not factor in the Build Dakota Scholarship in the assistance calculation to determine the amount of loans the student was eligible for. Effect: Student was overawarded the amount of aid they were eligible for. Questioned Costs: Direct Subsidized Loans: $2,233 over-awarded; Direct Unsubsidized Loans: $1,980 overawarded. Context/Sampling: A nonstatistical sample of 61 students who received Title IV disbursements out of 1,496 students who received aid. The total aid tested in sample was Direct Loans of $255,578. Repeat Finding from Prior Year(s): No. Recommendation: We recommend a review be completed when students are eligible for the Build Dakota Scholarship to determine if the student will be eligible for need and non-need based assistance. Views of Responsible Officials: Management agrees with the finding. Build Dakota funding is processed outside of the Financial Aid Office and over-award was missed in timing of loan awarding. Estimated funds will be added to and monitored in the PowerFAIDS system for additional compliance monitoring.

Corrective Action Plan

Identifying Number: 2023-003: U.S. Department of Education: Student Financial Aid Cluster – 84.268, Federal Direct Student Loans Finding: For one student out of 61 students tested, an incorrect amount of subsidized and unsubsidized loan was awarded. Corrective Action Taken or Planned: STC Financial Aid Office will request a list of Build Dakota students and estimated scholarship amounts at the beginning of the academic year. This information will be added into the student’s financial aid packaging formula to review for potential changes needed in federal aid awards. Once the Business Office has completed applying Build Dakota funds for the term, the information will be shared with the Financial Aid Office to make adjustments to the original estimates used. Contact person: Micah Hansen, Director of Financial Aid, Southeast Technical College Status of finding – The above corrective actions will be implemented beginning July 1, 2024.

Categories

Questioned Costs Student Financial Aid Subrecipient Monitoring Eligibility Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 391127 2023-004
    Significant Deficiency
  • 391128 2023-005
    Material Weakness
  • 391129 2023-002
    Material Weakness Repeat
  • 967568 2023-003
    Significant Deficiency
  • 967569 2023-004
    Significant Deficiency
  • 967570 2023-005
    Material Weakness
  • 967571 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.72M
10.555 National School Lunch Program $6.50M
84.010 Title I Grants to Local Educational Agencies $6.28M
93.600 Head Start $3.51M
84.063 Federal Pell Grant Program $3.06M
10.553 School Breakfast Program $1.54M
84.367 Improving Teacher Quality State Grants $1.16M
84.048 Career and Technical Education -- Basic Grants to States $1.08M
10.582 Fresh Fruit and Vegetable Program $548,841
84.011 Migrant Education_state Grant Program $535,990
84.424 Student Support and Academic Enrichment Program $483,876
84.060 Indian Education_grants to Local Educational Agencies $348,924
84.365 English Language Acquisition State Grants $335,584
84.425 Education Stabilization Fund $263,217
84.196 Education for Homeless Children and Youth $184,769
93.576 Refugee and Entrant Assistance_discretionary Grants $153,934
84.287 Twenty-First Century Community Learning Centers $137,525
10.559 Summer Food Service Program for Children $131,057
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $116,133
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $114,637
84.002 Adult Education - Basic Grants to States $110,548
84.007 Federal Supplemental Educational Opportunity Grants $92,010
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $57,220
93.575 Child Care and Development Block Grant $51,913
84.173 Special Education_preschool Grants $36,318
84.033 Federal Work-Study Program $30,646
10.558 Child and Adult Care Food Program $14,225
12.404 National Guard Challenge Program $13,246
15.130 Indian Education_assistance to Schools $12,197
84.027 Special Education_grants to States $9,457
93.913 Grants to States for Operation of Offices of Rural Health $6,000
45.025 Promotion of the Arts_partnership Agreements $3,851
84.181 Special Education-Grants for Infants and Families $3,361
64.028 Post-9/11 Veterans Educational Assistance $2,704