Finding Text
Finding 2022-013 ? Significant Deficiency: Eligibility ? Compliance and Control Finding ALN 84.063 ? Federal Pell Grant Program and 84.268 ? Federal Direct Student Loan Program ? Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: Per the Student Financial Aid Handbook, Volume 3, the University must follow the eligibility guidelines and limits set by the Department of Education guidelines for awarding Pell Grants and Federal Direct Students Loans. Condition: The University did not properly award students in accordance with the guidelines set by the Department of Education. Cause: Controls over compliance put in place by management were not operating effectively as it relates to awarding and disbursement of Title IV funds. Effect: The University?s controls did not prevent the errors noting during the awarding and disbursement of Title IV funds. Questioned Costs: Known and likely questioned costs did not exceed $25,000. Context: Based on a sample of 40 students, the University incorrectly under awarded Pell grants for 3 students in the amount of $300 and over awarded Federal Direct Loans for 2 students in the amount of $4,500. Identification As A Repeat Finding: 2021-019. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The Financial Aid staff will ensure systems are setup to prevent the over award of federal financial aid. The financial aid counselor will prepare and award the student. Upon completion, the financial aid counselor will submit the file to the Director of Financial Aid for the 2nd review. The University Financial Aid officers will undergo a series of trainings and certifications through the National Association of Student Financial Aid Administrators to assist with understanding aggregate limits for federal student aid.