Finding 562061 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-05-30
Audit: 357660
Organization: Roosevelt University (IL)
Auditor: Crowe LLP

AI Summary

  • Core Issue: The university awarded a student more Subsidized Federal Direct Loans than they were eligible for, violating federal regulations.
  • Impacted Requirements: Non-compliance with 34 CFR 685.303(g) regarding the treatment of excess loan proceeds.
  • Recommended Follow-Up: Implement post-scholarship eligibility checks to adjust loan amounts and reallocate excess funds to Unsubsidized Federal Direct Loans.

Finding Text

Finding 2024-002 – Disbursements for Student Financial Assistance Cluster (Significant Deficiency) Information on the federal program: Federal Direct Loan Program, ALN 84.268 Criteria: 34 CFR 685.303(g), Treatment of excess loan proceeds. Condition: University awarded Subsidized Federal Direct Loans to one student in excess of their Subsidized Federal Direct Loan eligibility, and therefore did not comply with all requirements associated with excess loan proceeds. Cause: The Student Financial Aid Department awarded a scholarship to a student which reduced the student's overall Subsidized Federal Direct Loan eligibility. The excess Subsidized Direct Loan award was not replaced with Unsubsidized Federal Direct Loans. Effect: Errors were made during the calculations of eligible aid causing an overaward of Subsidized Federal Direct Loans. Questioned costs: $2,931 Context: During review of the Special Tests and Provisions disbursement testing, it was noted a portion of the Subsidized Federal Direct Loan was awarded in excess of the student’s eligibility for one student. The excess funds should have been reallocated to Unsubsidized Federal Direct Loans upon the awarding of a scholarship to the student. Identification as a repeat finding: No Recommendation: We recommend University enhance its Student Financial Aid procedures by implementing post-scholarship eligibility checks to recalculate Subsidized Federal Direct Loan limits and automatically reallocate any excess funds to Unsubsidized Federal Direct Loans. Views of responsible officials and planned corrective actions: Management agrees with the finding and has prepared a Corrective Action Plan. The Plan is now in place.

Corrective Action Plan

University awarded Subsidized Federal Direct Loans to one student in excess of their Subsidized Federal Direct Loan eligibility, and therefore did not comply with all requirements associated with excess loan proceeds. Corrective Actions Taken or Planned: This finding is considered an isolated occurrence and is not indicative of Roosevelt University’s standard administrative practices or institutional policies. The University has taken the following corrective actions to address the issue and prevent recurrence Student Account Adjustment: A reallocation of $2,900 from the Federal Direct Subsidized Loan to the Federal Direct Unsubsidized Loan was completed to correct the student’s account. All necessary updates were submitted to the U.S. Department of Education on May 16, 2025. Root Cause Analysis and System Improvements: The University will conduct a thorough root cause analysis to determine the underlying factors that led to the overaward. This analysis will be completed within 30 days. Preventative Measure and On-going Monitoring: Based upon the outcome of the root cause analysis, Roosevelt will implement appropriate system controls and develop an on-going monitoring plan to prevent similar issues in the future. These preventative measures will be established within 45 days. Roosevelt University remains committed to maintaining compliance with federal regulations and to continuously strengthening its internal controls to ensure accurate administration of Title IV funds. Anticipated Completion Date: July 15, 2025 Contact Person: Michelle Hayes, Senior Director, Financial Aid and Compliance // Michelle Stipp, Associate Vice President, Enrollment Management

Categories

Questioned Costs Special Tests & Provisions Student Financial Aid Eligibility Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 562062 2024-002
    Significant Deficiency
  • 562063 2024-002
    Significant Deficiency
  • 1138503 2024-002
    Significant Deficiency
  • 1138504 2024-002
    Significant Deficiency
  • 1138505 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.07M
84.033 Federal Work-Study Program $567,895
84.031 Higher Education Institutional Aid $509,904
84.044 Trio Talent Search $331,990
84.042 Trio Student Support Services $252,853
84.047 Trio Upward Bound $226,489
84.217 Trio McNair Post-Baccalaureate Achievement $226,299
84.007 Federal Supplemental Educational Opportunity Grants $136,497
10.310 Agriculture and Food Research Initiative (afri) $81,869
47.076 Stem Education (formerly Education and Human Resources) $77,279
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $58,940
84.425 Covid-19 - Education Stabilization Fund $43,513
93.866 Aging Research $28,122
12.902 Information Security Grants $14,106
84.116 Fund for the Improvement of Postsecondary Education $14,009
84.063 Federal Pell Grant Program $7,490
84.365 English Language Acquisition State Grants $-19,998