Finding Text
Criteria: The Institution must verify that the student remains eligible to receive financial aid prior to disbursement of funds. From appendix A of the compliance supplement: Student must maintain good standing, or satisfactory academic progress (SAP) (34 CFRs 668.16, 668.32(f), 668.34, 690.75, 675.9, 676.9, 685.200, 686.11, 20 USC 1070h; 42 CFR 57.306; 42 USC 293a(d)(2)). Satisfactory academic progress (SAP) is defined as Maintenance of satisfactory progress (2.0 GPA). Condition: For 12 students with GPA?s under 2.0 of the 43 student files tested receiving financial aid during FY22 selected for testing, there was no evidence of a grant of appeal from SAP requirements prior to disbursement of funds to these students for five of these students. Cause: Weak internal control processes over SAP for students as well as the student appeal process. Effect: For students with a GPA < 2, the University failed to meet its obligation to assist the students with the appeals process. Questioned costs: $38,337 Perspective information: The population was eligibility for Title IV Funds - students must maintain a GPA > 2. The total population (in students) was 1,018. The sample size was 43. The number in sample size with GPA < 2 was 12. The number of exceptions found in the preceding column was 5. Identification of repeat findings: Not a repeat finding. Recommendation: The University should work with the Financial Aid Director to determine the root cause of why students with unsatisfactory academic performance students had no documented appeal process for students to continue to receive aid and develop corrective action as soon as possible to avoid future issues. Views of responsible officials: See Client?s Corrective Action Plan.