Finding 547882 (2024-005)

-
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: A student received financial aid exceeding their cost of attendance, violating federal guidelines.
  • Impacted Requirements: This finding indicates noncompliance with the requirement that total aid must not exceed financial need.
  • Recommended Follow-Up: The College should refund $280 and strengthen controls over student aid packaging to prevent future occurrences.

Finding Text

Criteria: A student’s total aid may not exceed the student’s financial need (Section 472, HEA). Condition: One of the forty student files (2.5%) we examined, we noted the student was awarded aid in excess of her cost of attendance budget. We consider this condition to be an instance of noncompliance to the Eligibility compliance requirement and is not a repeated finding. Statistical sampling was not used in making sample selections. Questioned Costs: $280 Cause and Effect: Without proper review of cost of attendance budgets students may receive funds in excess of their cost of attendance. Recommendation: We recommend the College refund $280 and increase controls over student aid packaging. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

Identification and Review • Conduct an internal audit of all financial aid awards for the affected students to determine the extent of the overaward • Identify the sources of aid contributing to the excess amount and whether any adjustments can be made within the same academic year. • Review packaging procedures to pinpoint the cause of the discrepancy (e.g., late outside scholarships, system errors, or manual adjustments Student Award Adjustments • Reduce or cancel institutional or federal aid (such as loans, Federal Work-Study, or certain grants) in accordance with federal regulations and institutional policies. • Notify students of any changes to their financial aid package and provide guidance on alternative funding options if needed. Process and Policy Improvements • Implement a cross-check system for all financial aid components and strengthen internal controls to ensure total aid does not exceed COA before disbursement • Implement additional system checks and alerts in the financial aid management system to flag overawards automatically. • Require timely reporting of external scholarships and third-party payments to prevent adjustments after disbursement Monitoring and Compliance • Conduct periodic reconciliation of student aid packages throughout the academic year to prevent overawards • Train financial aid staff on COA regulations and best practices for awarding aid Responsible Person for Correction Action Plan: Alexis Brown, Director of Financial Aid Implementation Date for Corrective Action Plan: 2/25/25

Categories

Questioned Costs Eligibility

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.27M
84.063 Federal Pell Grant Program $1.15M
84.033 Federal Work-Study Program $973,426
84.038 Federal Perkins Loan Program $75,937
84.007 Federal Supplemental Educational Opportunity Grants $51,433