Finding Text
FINDING 2022-001: OVERAWARDED FEDERAL DIRECT LOAN - FEDERAL AGENCY: US DEPARTMENT OF EDUCATION - PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM - ALN# 84.268 - FEDERAL AWARD YEAR: 2021-2022 - COMPLIANCE REQUIREMENT: ELIGIBILITY (E.) CRITERIA: A STUDENT IS ELIGIBLE TO RECEIVE A DIRECT SUBSIDIZED LOAN, A DIRECT UNSUBSIDIZED LOAN, OR A COMBINATION OF THESE LOANS, IF THE STUDENT IS ENROLLED, OR ACCEPTED FOR ENROLLMENT, ON AT LEAST A HALF TIME BASIS (34 CFR 685.200). CONDITION: WE TESTED FORTY FILES, THIRTY-NINE OF WHICH WERE FEDERAL DIRECT LOAN RECIPIENTS, AND ONE STUDENT WAS INCORRECTLY PACKAGED A DIRECT SUBSIDIZED LOAN FOR HIS FINAL SEMESTER. CAUSE: THE CONDITION WAS CAUSED BY AN OVERSIGHT IN THE FINANCIAL AID DEPARTMENT. EFFECT: THE RESULT IS THE STUDENT WAS ELIGIBLE FOR $2,063 BUT RECEIVED $2,825 IN SUBSIDIZED LOANS. QUESTIONED COSTS: $762. STATISTICAL SAMPLING WAS NOT USED WHEN MAKING SAMPLE SELECTIONS. RECOMMENDATION: WE RECOMMEND THE INSTITUTION RETURN $762 TO THE DEPARTMENT OF EDUCATION AND INCREASE CONTROLS OVER THE PACKAGING OF DIRECT LOANS. VIEWS OF RESPONSIBLE OFFICIALS: THE INSTITUTION AGREES WITH THE SINGLE AUDIT FINDING AND A RESPONSE IS INCLUDED IN THE CORRECTIVE ACTION PLAN. SEE SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR CHART/TABLE.