Finding Text
Finding No. 2022-004 ? Compliance Requirements ? Eligibility Federal Program Students Financial Assistance Programs Cluster: Assistance Listing 84.007 - Federal Supplemental Educational Opportunity Grants (FSEOG) Assistance Listing 84.033 - Federal Work-Study Program Assistance Listing 84.063 - Federal Pell Grant Program Assistance Listing 84.268 - Federal Direct Student Loans Program Name of Federal Agency U.S. Department of Education Pass-through Entity N/A Criteria 34 CFR Section 668.32(a)(1)(i) states that for a student to be eligible for student financial assistance programs, he or she must be a regular student enrolled or accepted for enrollment in an eligible program unless meeting an exception. Condition In testing compliance with the requirements for the Return of Title IV funds, we selected all nine (9) students who withdrew, dropped out or failed to attend the University and had received Title IV funds for the academic period in which the student withdrew, dropped out or failed to attend to the University. As a result of our testing of these compliance requirements, we noted one (1) instance, or 11% of the sample selected, in which the University disbursed Title IV funds (Direct Loan) to a non-eligible student, as follows: ?See Schedule of Findings and Questioned Costs for chart/table Context Of the nineteen (19) cases of students who withdrew, dropped out, or failed to attend the University, we selected all nine (9) students that had received Title IV funds for the academic period in which the student withdrew, dropped out or failed to attend to the University and noted one (1) instance of noncompliance (Direct Loans) with the required criteria. Of the nine (9) students selected for testing, only six (6) had received Direct Loans. The composition of the audit samples for the Direct Loan program and the population from which the samples were drawn were as follows: ?See Schedule of Findings and Questioned Costs for chart/table? Cause The student was incorrectly classified as enrolled by the Registrar Department due to human error. Effect As a result of this condition, the USDE may issue warnings and/or impose penalties on the University. In addition, it could result in reduced availability of federal funds to other students in need of financial assistance. Questioned Cost As of the date the financial statements were available to be issued, questioned costs were not determined, since the amount of $14,423 had been paid by the University. Identification of a repeat finding This is not a repeat finding from the immediate previous audit. Recommendation The University needs to improve its processes over the review of student?s eligibility to ensure that only eligible students receive financial aid under federal financial assistance programs. Furthermore, controls over student enrollment should be enhanced to ensure that only qualified students are registered as enrolled in the University. Views of responsible officials and corrective action plan The University management agrees with this finding. Please refer to the corrective action plan on pages 66-76.