Finding 46682 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-12-19

AI Summary

  • Core Issue: A student was over awarded by $679 in Direct Loans, exceeding the allowable tolerance for financial aid adjustments.
  • Impacted Requirements: Loans must not exceed the student's estimated cost of attendance, which was violated due to a lack of adjustments after the student accepted Federal Work Study.
  • Recommended Follow-Up: Implement a process for the Financial Aid Department to review all Federal Work Study applications to ensure proper adjustments to financial aid awards.

Finding Text

Criteria: 34 CFR 685.203(j) Maximum loan amounts. In no case may a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan amount exceed the student's estimated cost of attendance for the period of enrollment for which the loan is intended. Condition: A sample of 40 students were selected for student file testing. Of those tested, one student was over awarded for the period of enrollment by $679. The University is allowed a tolerance of $300 in over awarded aid, but that was exceeded in this case. This student was initially packaged with Federal Work Study funds, but declined them. The student later changed their mind and ended up earning Federal Work Study during the enrollment period. The direct loans for the student were never adjusted accordingly. Context: The deficiency was discovered during the audit testing of student files and Federal Work Study. Effect: The University should have reduced the amount of direct loans for this student by $679 to accommodate the Federal Work Study award so the student was within the cost of attendance budget. Cause: This appeared to be an isolated incident where the initial packaging of the student with Federal Work Study allowed them to later apply for and earn Federal Work Study wages. The University?s systems prevent students who are not packaged to receive Federal Work Study from applying for those positions without approval from the Financial Aid Department first. The student?s declining of the initial award did not result in an update in the software to prevent them working a Federal Work Study position without notifying the Financial Aid Department. Recommendation: We recommend the University require that all applications for Federal Work Study positions be reviewed by the Financial Aid Department prior to the student obtaining a position to ensure any awards are adjusted if needed.

Corrective Action Plan

Finding: 2022-001 Student Financial Assistance Cluster Special Tests and Provisions 84.033 Department?s Response: We concur Corrective Action: This finding was an error. To prevent this type of error from occurring in the future the Director of Financial Aid has created a list of checks and balances that must be made before a student may obtain a work-study job. Contact: Sally Kalstrom Anticipated Completion Date: Immediately

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $16.79M
84.425 Education Stabilization Fund $359,932
84.033 Federal Work-Study Program $126,128
84.063 Federal Pell Grant Program $98,495
84.007 Federal Supplemental Educational Opportunity Grants $72,000
93.213 Research and Training in Complementary and Integrative Health $21,791