Finding 521531 (2024-002)

-
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-02-04
Audit: 341204
Organization: Southern Wesleyan University (SC)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Two students were not awarded loans correctly based on their financial need.
  • Impacted Requirements: Violations of 34 CFR 685.200(a) and 34 CFR 685.203 regarding need-based aid.
  • Recommended Follow-Up: Implement regular reports in the student information system to monitor for over or under awarding of federal aid.

Finding Text

Need Analysis DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: Students were not appropriately awarded loans based on need. Criteria: 34 CFR 685.200(a), 34 CFR 685.203 Questioned Costs: $1,237 Context: Out of 60 students tested, 2 students were not awarded aid appropriately based on need analysis. One student who graduated in the Spring term had their loans incorrectly prorated for completing 21 total credit hours out of 24 credit hours for full-time determination; this caused the student to be under awarded $1,563 in FDL. One student was awarded $1,237 in subsidized loans over need. These were not corrected during the audit. Cause: There was transition in the financial aid office in the middle of the 2023-2024 award year. Effect: Students not awarded need based federal aid according to eligibility. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University set up reports in the student information system to periodically check for over or under awarding of need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Need Analysis Planned Corrective Action: A process to periodically review over and under awarding of federal need-based aid will be implemented. This will require IT assistance to create and run lists of students in this situation on a weekly basis. Person Responsible for Corrective Action Plan: Thomas Valles, Director of Financial Aid Anticipated Date of Completion: April 30, 2025

Categories

Questioned Costs Student Financial Aid Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 521529 2024-001
    Significant Deficiency
  • 521530 2024-001
    Significant Deficiency
  • 1097971 2024-001
    Significant Deficiency
  • 1097972 2024-001
    Significant Deficiency
  • 1097973 2024-002
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.54M
84.063 Federal Pell Grant Program $1.88M
84.027 Special Education Grants to States $437,712
84.031 Higher Education Institutional Aid $187,241
84.038 Federal Perkins Loan Program $159,893
84.007 Federal Supplemental Educational Opportunity Grants $94,314
84.033 Federal Work-Study Program $93,965
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $45,264
84.116 Fund for the Improvement of Postsecondary Education $41,282