Finding 5784 (2023-002)

Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2022-2023 Award Year Condition: Errors in need analysis for federal financial aid let to inaccurate awarding and disbursing need based federal financial aid. Criteria: 34 CFR 685.200 and 34 CFR 685.203 Questioned Costs: $0 Context: Out of 60 students tested, one was under awarded subsidized Federal Direct Loans by $3,500 and three students were over awarded subsidized Federal Direct Loans totaling $6,260. Cause: Turnover in staffing and inexperience of new Financial Aid staff. For one student, the University followed the student request to award the unsubsidized loan and reject the subsidized loan. However, per Federal regulations, the school must always award the maximum subsidized loan before awarding any Unsubsidized loan funds. Three students were awarded over need and should have been awarded the loans as unsubsidized. Effect: Incorrect allocation of subsidized versus unsubsidized which affects the amount and timing of interest the student must repay. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that the University set up reports in the student information system to periodically check for over or under awarding of need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.