Finding 579135 (2023-001)

Finding 2023-001: Information on Federal Program: United States Department of Education. Student Financial Assistance Cluster. Federal Assistance Listing Number 84.268 – Federal Direct Loan Program. Compliance Requirements: Eligibility Criteria: (34 CFR 668.32(g)(2)) A student is eligible to receive Title IV, HEA program assistance if the student has not obtained loan amounts that exceed annual or aggregate loan limits made under any Title IV, HEA loan program. Condition: For the year ended May 31, 2023, we reviewed general eligibility requirements for students who received Title IV program funds and noted one (1) instance where a student received Title IV program funds during the audit period after the student exceeded their aggregate loan limit. Cause: No cause could be determined. Effect: Students received more loan funds than allowed. Questioned Costs: $1,732 in 22-23 Subsidized Federal Direct Loan program funds and $2,969 in 22-23 Unsubsidized Federal Direct Loan program funds. Context: We tested forty (40) randomly selected student files totaling $491,875 from a population of $17,533,359 and found one (1) instance of noncompliance in the amount of $4,701. Student #E25 – The student received $1,732 in 22-23 Subsidized Federal Direct Loan program funds and $2,969 in 22-23 Unsubsidized Federal Direct Loan program funds. The student was eligible for $0 in 22-23 Subsidized Federal Direct Loan program funds and $0 22-23 Unsubsidized Federal Direct Loan program funds, resulting in a $1,732 overaward in 22-23 Subsidized Federal Direct Loan program funds and a $2,969 overaward in 22-23 Unsubsidized Federal Direct Loan program funds. At the time of the audit, the student had received $77,645 in aggregate loans. An independent undergraduate student is only allowed to receive up to $57,500 in aggregate loans. Subsequent to the audit, the University refunded $1,732 in 22-23 Subsidized Federal Direct Loan program funds and $2,969 in 22-23 Unsubsidized Federal Direct Loan program funds. Repeat Finding: Not a repeat finding. Recommendation: Subsequent to the audit, the University refunded the awards in question. Therefore, we recommend management review and revise controls over student eligibility, at the time of packaging, to determine students have not or will not exceed their annual or aggregate loan limits. Responsible Official’s Response and Corrective Action Planned: Management agrees with the finding and recommendations. The organization will undergo a software upgrade aimed at augmenting the efficiency and precision of the financial aid department. We anticipate that this upgrade will be fully operational by the end of the first quarter of the next calendar year. Planned Implementation Date of Corrective Action: 03/29/2024 Person Responsible for Corrective Action: Clifton Mitchell, Director of Student Financial Services.