Finding Text
2023-001: Student Eligibility and Awarding
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.268 – Federal Direct Student Loans
Federal Award Identification Number and Year: P268K231182- 2023
Award Period: July 1, 2022 through June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria: The Code of Federal Regulations, 34 CFR 685.203(a) outline the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors. In addition, 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements.
Condition: During our testing, we noted 1 instance out of 40 students tested at the College where the Subsidized Stafford Loan awarded to the student was less than the maximum amount they were eligible for. An Unsubsidized Stafford Loan was then issued before the maximum subsidized loan amount was awarded.
Questioned Costs: For the instance identified, the student was under awarded $1,000.
Context: The District awarded $1,167,562 in Direct Loans during the year.
Cause: Typographical error based on the department staff member using the values on the student’s loan request form.
Effect: For the instance identified, the student was under awarded the unsubsidized portion of the Stafford Loan.
Repeat Finding: This was not a finding in the prior year.
Recommendation: We recommend the District to evaluate its procedures related to the manual input of information from the student loan request.
Views of responsible officials: Management concurs with the finding and plans to correct the finding.