FAC Explorer

Finding 391390 (2023-003)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-04-01
Audit: 301916
Organization: Bethany Lutheran College, Inc. (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The College under awarded need-based aid to 2 students, resulting in a total under award of $2,062.
  • Impacted Requirements: This finding violates federal regulations regarding the proper calculation of student financial aid based on need and attendance costs.
  • Recommended Follow-Up: Implement a review process for all student award packages at the beginning of each academic year to prevent future over awards.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007 – Federal Supplemental Educational Opportunity Grants 84.033 – Federal Work-Study Program 84.038 – Federal Perkins Loan Program 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2022 to June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: Per the Code of Federal Regulations, 34 CFR 673.5, students may not be under awarded need-based aid in excess of their calculated need. In addition, 34 CFR 685.203(j) states that in no case may a loan amount exceed the student’s estimated cost of attendance for the period of enrollment for which the loan is intended less the student’s estimated financial assistance for that period and in the case of Direct Subsidized Loans, the borrower’s expected family contribution for that period. Condition: During our testing, we noted for 2 out of 40 students tested, there was an under award of need-based aid in the amount of $2,062 as total aid paid was lower than it should have been relating to the student's total need in the 2022-23 academic year. Questioned Costs: $2,062 Context: Two students aid should have been repackaged after the College accepted their transfer credits, thus causing an under award in need-based aid. Cause: Management incorrectly awarded these students based on their transfer credits and financial need. Effect: The College is not in compliance with Department of Education requirements. Repeat Finding: No Auditor’s Recommendation: We recommend the College implements policies to review all student award packages at the start of the academic year to ensure no over awards exist. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Corrective Action Plan

Title: Student Financial Assistance Cluster – Assistance Listing Nos. 84.038, 84.268, 84.033, 84.007, 84.063 Recommendation: We recommend the College implements policies to review all student award packages at the start of the academic year to ensure no over awards exist. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid Office looks for over award situations throughout the academic year, as changes to Cost of Attendance and financial aid (Scholarships/Grants, Loans, and Work- Study earnings) can change throughout the year. That said, Financial Aid Staff (Jeff Younge and/or Sally Sorensen) will review every student for potential over awards during the 1st two weeks of fall semester (beginning August 20, 2024), to catch any over awards that may have been created between the time of packaging, and beginning of the academic year. Name of the contact person responsible for corrective action: Jeff Younge, Director of Financial Aid Planned completion date for corrective action plan: 3/26/2024

Categories

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

Other Findings in this Audit

  • 391385 2023-002
    Significant Deficiency
  • 391386 2023-002
    Significant Deficiency
  • 391387 2023-002
    Significant Deficiency
  • 391388 2023-002
    Significant Deficiency
  • 391389 2023-002
    Significant Deficiency
  • 391391 2023-003
    Significant Deficiency
  • 391392 2023-003
    Significant Deficiency
  • 391393 2023-003
    Significant Deficiency
  • 391394 2023-003
    Significant Deficiency
  • 391395 2023-004
    Significant Deficiency
  • 391396 2023-004
    Significant Deficiency
  • 391397 2023-004
    Significant Deficiency
  • 391398 2023-005
    Significant Deficiency
  • 391399 2023-005
    Significant Deficiency
  • 391400 2023-005
    Significant Deficiency
  • 391401 2023-005
    Significant Deficiency
  • 391402 2023-005
    Significant Deficiency
  • 967827 2023-002
    Significant Deficiency
  • 967828 2023-002
    Significant Deficiency
  • 967829 2023-002
    Significant Deficiency
  • 967830 2023-002
    Significant Deficiency
  • 967831 2023-002
    Significant Deficiency
  • 967832 2023-003
    Significant Deficiency
  • 967833 2023-003
    Significant Deficiency
  • 967834 2023-003
    Significant Deficiency
  • 967835 2023-003
    Significant Deficiency
  • 967836 2023-003
    Significant Deficiency
  • 967837 2023-004
    Significant Deficiency
  • 967838 2023-004
    Significant Deficiency
  • 967839 2023-004
    Significant Deficiency
  • 967840 2023-005
    Significant Deficiency
  • 967841 2023-005
    Significant Deficiency
  • 967842 2023-005
    Significant Deficiency
  • 967843 2023-005
    Significant Deficiency
  • 967844 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.50M
84.063 Federal Pell Grant Program $811,317
84.038 Federal Perkins Loan Program $164,622
84.033 Federal Work-Study Program $36,806
84.007 Federal Supplemental Educational Opportunity Grants $32,667