Finding 524639 (2024-003)

- Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-02-27
Audit: 344088
Organization: Eureka College (IL)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: Three out of 40 student files (7.5%) were improperly awarded Direct loans, indicating noncompliance with eligibility requirements.
  • Impacted Requirements: Failure to follow 34 CFR 682.201, which mandates proper loan origination and eligibility verification processes.
  • Recommended Follow-Up: The College should review and improve policies to ensure accurate awarding of Title IV aid to students.

Finding Text

2024-003 - Student Financial Aid Cluster - (a) Federal Pell Grant (b) Federal Supplemental Educational Opportunity Grant (c) Federal Work Study Grant (d) Federal Perkins Loan Program (e) Federal Direct Student Loans (f) Teacher education Assistance for College and Higher Education ALN No. (a) 84.063 (b) 84.007 (c) 84.033 (d) 84.038 (e) 84.268 (f) 84.379 - Year Ended June 30, 2024. Criteria: 34 CFR 682.201 (a) (1-2) notes, “(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.” Condition: Three of the 40 student files (7.5%) we examined, we noted the students were not properly awarded Direct loans. We consider this condition to be an instance of noncompliance relating to the Eligibility compliance requirement and is part a repeat finding shown in Section IV of this report as prior year finding 2023-003. Statistical sampling was not used in making sample selections. Questioned Costs: $809 Cause and Effect: For the awards, without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

2024-003 - Student Financial Aid Cluster - (a) Federal Pell Grant (b) Federal Supplemental Educational Opportunity Grant (c) Federal Work Study Grant (d) Federal Perkins Loan Program (e) Federal Direct Student Loans (f) Teacher education Assistance for College and Higher Education ALN No. (a) 84.063 (b) 84.007 (c) 84.033 (d) 84.038 (e) 84.268 (f) 84.379 - Year Ended June 30, 2024. Condition: Three of the 40 student files (7.5%) we examined, we noted the students were not properly awarded Direct loans. We consider this condition to be an instance of noncompliance relating to the Eligibility compliance and is part a repeat finding shown in Section IV of this report as prior year finding 2023-003. Management Response: Management agrees with the finding Corrective Action Plan: Loan calculations are automatic as part of JFA. Any manual changes to these loan amounts will be documented on the student file to justify differing amounts. Responsible Person: Tim Marten Implementation Date: 7/01/2024

Categories

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

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.56M
84.063 Federal Pell Grant Program $1.43M
11.307 Economic Adjustment Assistance $797,429
84.033 Federal Work-Study Program $82,440
84.031 Higher Education_institutional Aid $67,920
84.007 Federal Supplemental Educational Opportunity Grants $57,084
84.038 Federal Perkins Loan Program $54,815
45.301 Museums for America $34,003
45.149 Promotion of the Humanities_division of Preservation and Access $5,160
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $3,772