Finding Text
Audit Finding Reference Number Questioned Costs
2023 – 006 – Ineligible Aid Recipients $ 31,666
Federal Program and Specific Federal Award Identification
CFDA Title and Number
84.268 Federal Direct Student Loans (Direct)
Federal Award Number
June 30, 2023
Federal Agencies
U.S. Department of Education
Pass-Through Entity
Not applicable
Criteria
Title IV regulations 34 CFR 668.32 (a)(2) stipulates that a student is eligible to receive Title IV Direct Loans if the student is enrolled at least half-time at an eligible institution.
Conditions and Contexts
I noted during my testing nine (9) students out of seventy-one (71) students tested who was not enrolled at least half-time and received Direct loans.
Cause
It appears that ABC did not property administer and disburse Title IV aid to eligible recipients.
Questioned Costs
For purposes of this condition, I have questioned costs totaling $31,666 related to the Direct loan program.
Effect
ABC disbursed financial aid to an ineligible student.
Repeat Finding
Yes. See Schedule of Prior Year Audit Finding 2022-006.
Recommendation
I recommend that management of ABC adhere to established procedures to ensure that all federal funds are disbursed to eligible students.
Management’s Response
Management concurs with this finding. The College will review and adhere to its practices, policies, and procedures along with federal guidelines as it relates to disbursing and administering federal aid. The College will return any ineligible funds accordingly.
Responsible Administrators: Director of Financial Aid, Chief Financial Officer & V.P. of Academic Affairs
Effective: Immediately and ongoing.