Finding Text
Need Analysis DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans Federal Award Identification #: 2021-2022 Financial Aid Year Condition: Student were not initially appropriately awarded subsidized aid based on need. Criteria: 34 CFR 685.203 Questioned Costs: $500 Context: Three students out of 62 were not awarded the appropriate amount of subsidized aid based on need. One student was incorrectly awarded due to the year of enrollment, resulting in an overaward of $500 of subsidized loans. The other students had changes of scholarships that resulted in manual calculations and adjustments, and incorrectly removed the subsidized loans totaling $5,837 and disbursed unsubsidized instead. All three students were corrected during the audit process. Cause: Additional scholarships and adjustments were added after federal aid was awarded but before the second disbursement was made. The validation check before the second disbursement was made did not catch these. Effect: Two students did not receive subsidized aid for which they were eligible, and one student received subsidized aid for which they were not eligible. Identification as repeat finding, if applicable: 2021-002. Recommendation: We recommend the University adjust processes to automate changes in packaging to reduce manual errors. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.