Finding Text
FINDING 2022-005 ? Overaward Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($149,449) Award Number: P268K223976 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $4,237 Condition Found: There was a combined total of $4,237 of overawards given to four of the twenty-eight students in our sample. Criteria: The total amount of aid a student receives cannot be greater than his or her cost of attendance. Cause: The incorrect cost of attendance was input into the School?s loan spreadsheet that determined the remaining need and loan eligibility for the students in question. Possible Asserted Effect: There was a total of $4,237 in overawards between the four students: ? The first student received $55 of unsubsidized loans that he or she was not eligible to receive. ? The second student received $1,429 of unsubsidized loans that he or she was not eligible to receive. ? The third student received $2,105 of unsubsidized loans that he or she was not eligible to receive. ? The fourth student received $648 of subsidized loans that he or she was not eligible to receive. Repeat Finding: See Finding 2021-004 for a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: One student who received subsidized loans has unsubsidized loan eligibility left after completing the needs analysis calculation. A total of $648 of subsidized loans should be reclassified to unsubsidized loans. The School should return a total $3,589 of unsubsidized loans for the remaining three students associated with this finding. Going forward, the School should limit subsidized and unsubsidized, plus, and private loan borrowing to the student?s cost of attendance. The Financial Aid Director should verify the correct cost of attendance is used on internally created spreadsheets. Management Response: Management agrees with the auditors? finding and their recommendation. The School will reclassify $648 of subsidized funds as unsubsidized funds. The School will return $3,589 of unsubsidized loan funds to the Department of Education. The Financial Aid Director will limit the total amount of aid a student receives to his or her cost of attendance and verify the cost of attendance used on internally created spreadsheets is correct.