Finding 616594 (2022-004)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-07-12
Audit: 53516
Organization: Virginia Union University (VA)
Auditor: Brown Edwards

AI Summary

  • Core Issue: Five out of twelve students with GPAs below 2.0 received financial aid without documented appeals, violating eligibility requirements.
  • Impacted Requirements: The institution must ensure students maintain a GPA of 2.0 or higher and properly manage the appeal process for financial aid.
  • Recommended Follow-Up: Collaborate with the Financial Aid Director to identify the root cause of the lack of documented appeals and implement corrective actions promptly.

Finding Text

Criteria: The Institution must verify that the student remains eligible to receive financial aid prior to disbursement of funds. From appendix A of the compliance supplement: Student must maintain good standing, or satisfactory academic progress (SAP) (34 CFRs 668.16, 668.32(f), 668.34, 690.75, 675.9, 676.9, 685.200, 686.11, 20 USC 1070h; 42 CFR 57.306; 42 USC 293a(d)(2)). Satisfactory academic progress (SAP) is defined as Maintenance of satisfactory progress (2.0 GPA). Condition: For 12 students with GPA?s under 2.0 of the 43 student files tested receiving financial aid during FY22 selected for testing, there was no evidence of a grant of appeal from SAP requirements prior to disbursement of funds to these students for five of these students. Cause: Weak internal control processes over SAP for students as well as the student appeal process. Effect: For students with a GPA < 2, the University failed to meet its obligation to assist the students with the appeals process. Questioned costs: $38,337 Perspective information: The population was eligibility for Title IV Funds - students must maintain a GPA > 2. The total population (in students) was 1,018. The sample size was 43. The number in sample size with GPA < 2 was 12. The number of exceptions found in the preceding column was 5. Identification of repeat findings: Not a repeat finding. Recommendation: The University should work with the Financial Aid Director to determine the root cause of why students with unsatisfactory academic performance students had no documented appeal process for students to continue to receive aid and develop corrective action as soon as possible to avoid future issues. Views of responsible officials: See Client?s Corrective Action Plan.

Categories

Questioned Costs Student Financial Aid Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 40152 2022-004
    Material Weakness
  • 40153 2022-001
    Material Weakness Repeat
  • 40154 2022-002
    Significant Deficiency Repeat
  • 40155 2022-003
    Significant Deficiency Repeat
  • 42658 2022-005
    Material Weakness
  • 42659 2022-006
    Material Weakness
  • 42660 2022-007
    Material Weakness
  • 616595 2022-001
    Material Weakness Repeat
  • 616596 2022-002
    Significant Deficiency Repeat
  • 616597 2022-003
    Significant Deficiency Repeat
  • 619100 2022-005
    Material Weakness
  • 619101 2022-006
    Material Weakness
  • 619102 2022-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.62M
84.425 Education Stabilization Fund $4.90M
84.063 Federal Pell Grant Program $3.50M
47.076 Education and Human Resources $451,395
84.007 Federal Supplemental Educational Opportunity Grants $390,500
84.031 Higher Education_institutional Aid $380,517
84.047 Trio_upward Bound $331,351
84.042 Trio_student Support Services $308,503
84.033 Federal Work-Study Program $238,349
84.044 Trio_talent Search $194,307
99.U01 National Institue of General Medical Sciences: Institutional Research and Academic Career Devleopment Awards $26,303