Finding Text
Finding number: 2023-011
Federal agency: U.S. Department of Education
Programs: Student Financial Assistance Cluster
Assistance listing #: 84.063 & 84.268
Award year: 2023
Compliance requirement: Eligibility
Criteria
According to 34 CFR 668.32:
A student is eligible to receive Title IV, HEA program assistance if the student either meets all of the requirements in paragraphs (a) through (m) of this section or meets the requirement in paragraph (n) of this section as follows:
(e) (1) Has a high school diploma or its recognized equivalent
Condition
The Federal Government requires that evidence of a high school diploma, its recognized equivalent, or an alternative educational requirement be provided by the student prior to their first disbursement. During our testing, we noted the College failed to retain a high school diploma or recognized equivalent for 2 students, out of a sample of 40. As a result, the College was unable to provide the necessary documentation to support the students’ eligibility. Our sample was not, and was not intended to be, statistically valid.
Cause
The College failed to have the proper internal controls in place to validate that students are eligible to receive Title IV prior to their first disbursement.
Effect
The students were awarded and disbursed federal student aid that they may not be eligible to receive.
Questioned Costs
$29,187
Identification as a Repeat Finding, if applicable
See finding 2022-003 included in the summary schedule of prior year findings.
Recommendation
The College should implement internal control procedures to ensure all students are eligible to receive federal student aid before their first disbursement.
View of Responsible Officials
The College agrees with the finding.