Finding 52384 (2022-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2022-11-02

AI Summary

  • Core Issue: Two students were incorrectly awarded financial aid due to improper loan proration and failure to update Pell Grant amounts.
  • Impacted Requirements: Aid must be adjusted based on enrollment duration and updated information, as outlined in federal regulations.
  • Recommended Follow-Up: Implement regular quality control checks to improve accuracy in financial aid awards.

Finding Text

Finding ? Eligibility - Student Financial Assistance Cluster, all CFDA #'s included on Schedule of Expenditures of Federal Awards, June 30, 2022 Award Year; U.S. Department of Education Criteria or Specific Requirement The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. (2021 - 2022 Student Financial Aid Bank Book, Volume 3, Chapter 5, Page 3-160, 34 CFR 685.203(a),(b),(c)) The amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. (2021 - 2022 Student Financial Aid Handbook, Volume 3, Chapter 3, Page 3-68, 34 CFR 690.62) Condition Of the 40 students selected for eligibility testing, two students within the sample were incorrectly awarded aid based upon their specific circumstances. This was not a statistically valid sample. Cause In one instance, a student was over awarded Direct Loans. The student's remaining period of study was less than one full academic year, as they graduated at the completion of the fall semester. As such, loan proration is required. The student received a full year's worth of Direct Loans. In one instance, a student was under awarded Pell Grant funds. An updated ISIR was issued following the award packaging process. The University did not correct the Pell Grant award following this correction. Effect The University's system of internal control did not prevent or detect these instances, thus, these students were either over or under awarded Title IV aid. Questioned Costs $3,324 Identification as a Repeat Finding This is not a repeat finding. Recommendation The University should implement periodic quality control reports to allow for further accuracy checks. Views of Responsible Officials and Corrective Actions See corrective action plan.

Corrective Action Plan

Finding ? Eligibility ? Federal Direct Student Loan Program Assistance Listing Number 84.268 and Federal Pell Grant Program Assistance Listing Number 84.063; June 30, 2022 Award Year; U.S. Department of Education Criteria or Specific Requirement The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length but is in a remaining period of study that is shorter than a full academic year. (2021 - 2022 Student Financial Aid Bank Book, Volume 3, Chapter 5, Page 3-160, 34 CFR 685.203(a),(b),(c)) The amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. (2021 - 2022 Student Financial Aid Handbook, Volume 3, Chapter 3, Page 3-68, 34 CFR 690.62) Condition Of the 40 students selected for eligibility testing, two students within the sample were incorrectly awarded aid based upon their specific circumstances. This was not a statistically valid sample. Views of Responsible Officials and Planned Corrective Actions The University concurs with the finding. The University will implement periodic quality control checks to ensure student aid is being appropriately calculated and awarded based upon relevant student enrollment and financial information. Names of Contact Persons Responsible for Corrective Action: Joan Romano, Registrar and Anne-Marie Caruso, Assistant Vice President/Director of Financial Aid Anticipated Completion Date: October 24, 2022

Categories

Student Financial Aid Eligibility Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 52383 2022-002
    Significant Deficiency Repeat
  • 52385 2022-001
    Significant Deficiency
  • 628825 2022-002
    Significant Deficiency Repeat
  • 628826 2022-001
    Significant Deficiency
  • 628827 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loan Program $26.01M
84.063 Federal Pell Grant Program $4.79M
84.425 Covid-19 - Higher Education Emergency Relief Fund Student Portion $4.77M
84.038 Federal Perkins Loan Program $2.44M
84.033 Federal Work-Study Program $510,059
84.007 Federal Supplemental Educational Opportunity Grant (fseog) Program $304,269
17.268 H-1b Job Training Grants $124,128
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Speed Spin Testing $117,807
47.076 Urban Massachusetts Lsamp $11,781