Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
ALN Numbers: Various
Award Period: July 1, 2023 through June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control Over Compliance
Criteria or specific requirement: Per the Code of Federal Regulations, 34 CFR 673.5, students may not be 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 1 out of 40 students tested, they were awarded and disbursed subsidized loans over their need by $1,000.
Questioned costs: $1,000
Context: During our testing, it was noted the student received an additional scholarship and their aid package was calculated correctly within their physical file; however, it did not get updated in the system causing an over award in need-based aid.
Cause: The College's current processes and controls did not ensure updates in the student’s physical file were updated into the student information system.
Effect: The College is not in compliance with Department of Education requirements.
Repeat Finding: No
Recommendation: We recommend that the College review their awarding procedures and implement procedures to ensure the subsidized direct loans are awarded within a students’ need.
Views of responsible officials: There is no disagreement with the audit finding.