Finding Text
FINDING 2022-003: UNDERAWARDED FEDERAL DIRECT SUBSIDIZED LOAN FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN: 84.268 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Eligibility (E.) Criteria: A second year student can receive up to $4,500 in subsidized loans in one academic year (34 CFR 685.203). Condition: We tested seventy-one files, fifty-nine of which were Federal Direct Loan recipients, and one students did not receive the full amount of her Federal Direct Subsidized Loan. We consider these finding to be an instance of non-compliance. This is a repeat finding of prior year Finding 2021-002. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result is student received unsubsidized loans prior to receiving full subsidized loans. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for chart/table Recommendation: We recommend the Institution reclassify $563 from unsubsidized to subsidized, and increase controls over packaging direct loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.