Finding 525604 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-04
Audit: 344704
Organization: Central Methodist University (MO)

AI Summary

  • Core Issue: Three students received incorrect financial aid packages, resulting in under-awards of federal loans and grants.
  • Impacted Requirements: Disbursement of federal direct loans must align with the Federal Student Aid Handbook.
  • Recommended Follow-Up: The University should create and enforce policies to ensure proper review of financial aid packaging.

Finding Text

Finding 2024-003: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found three (3) instances where student financial aid was incorrectly packaged. One (1) student was under-awarded federal direct subsidized loan and pell grant, one (1) student was under-awarded federal direct subsidized loan, and one (1) student was under-awarded a pell grant. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Effect of Condition: We found three (3) instances where student financial aid was incorrectly packaged; all three (3) students were under-awarded need-based aid. Cause of Condition: The University does not consistently follow its policy to review the packaging of student financial aid. Recommendation: We recommend the University develop policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.

Corrective Action Plan

Description of Finding: From the testing sample 3 instances were found where student financial aid was incorrectly packaged. All 3 were under awarded loans and or Pell Grants. Statement of Concurrence or Nonconcurrence: Management agrees that in each of the 3 cases, aid was not packaged correctly. Corrective Action: The staff in the financial assistance office has seen a large turnover over the past year. Training continues for those new to packaging. A Pell Report has been developed to automatically identify Pell awards based on the new SAI process. Summer Pell training for eligible students will be held for all staff before the Summer 2025 award period. Name of Contact Person: Dyllon Harper, Director of Financial Assistance, Projected Completion Date: Summer 2025

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Significant Deficiency

Other Findings in this Audit

  • 525603 2024-001
    Significant Deficiency
  • 525605 2024-002
    Significant Deficiency
  • 525606 2024-001
    Significant Deficiency
  • 525607 2024-002
    Significant Deficiency
  • 525608 2024-001
    Significant Deficiency
  • 525609 2024-001
    Significant Deficiency
  • 525610 2024-002
    Significant Deficiency
  • 1102045 2024-001
    Significant Deficiency
  • 1102046 2024-002
    Significant Deficiency
  • 1102047 2024-002
    Significant Deficiency
  • 1102048 2024-001
    Significant Deficiency
  • 1102049 2024-002
    Significant Deficiency
  • 1102050 2024-001
    Significant Deficiency
  • 1102051 2024-001
    Significant Deficiency
  • 1102052 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $13.39M
84.063 Federal Pell Grant Program $8.59M
84.007 Federal Supplemental Educational Opportunity Grants $314,664
84.033 Federal Work-Study Program $174,254
21.027 Coronavirus State and Local Fiscal Recovery Funds $83,685
20.205 Highway Planning and Construction $3,086