Finding Text
Disbursements to Ineligible Students Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063, 84.379
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: The University disbursed various federal financial assistance to students who were not eligible for that aid under the code of federal regulations for the specific program.
Criteria: Federal Direct Loans: 34 CFR 685.203(d) and (e); TEACH Grant: 34 CFR 686.11(a); Pell Grant: 34 CFR 690.6(a) and (b)
Questioned Costs: $13,320
Context: For Federal Direct Loans, out of 60 students tested for Direct Loan eligibility, specifically, awarding Direct Loans within aggregate loan limits as outlined in 34 CFR 685.203(d) and (e), there was 1 student who was disbursed aid above their aggregate loan limit. This error caused questioned costs of $220. For TEACH grant, out of 3 students tested for TEACH grant eligibility, there was 1 student who was disbursed TEACH grant who was not eligible due to not meeting the minimum GPA requirements as established under 34 CFR 686.11(a). There were questioned costs of $1,886. For Pell grant, out of 30 students tested for Pell grant eligibility, there was 1 student who had a previous bachelor’s degree and was, therefore, ineligible for the Pell grant amounts disbursed based on 34 CFR 690.6(a). A total of $10,342 was disbursed as questioned costs. Additionally, out of 30 students tested for proper Pell Grant based on eligible coursework, there was 1 student who had aid disbursed for a course that was not eligible for Pell grant, based on 34 CFR 690.6(b). This error caused questioned costs of $872. The University corrected all of the above items during the audit and returned all necessary funds to Department of Education.
Cause: During the 2022-2023 financial aid award year, the University implemented a new financial aid processing system that was being configured throughout the award year. Due to this change, the University was not able to maintain compliance with various student eligibility requirements.
Effect: Students who were not eligible for aid received aid. The University was required to return funds for students who were not eligible.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend that the University continue to assess areas for improvement in their new financial aid system and implement additional review over student eligibility before aid is disbursed.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.