Finding 637908 (2022-001)

-
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-03-21
Audit: 57022
Auditor: Sikich LLP

AI Summary

  • Core Issue: A student received an overawarded federal direct subsidized loan due to a packaging error, resulting in excess funds of $762.
  • Impacted Requirements: The eligibility criteria for federal loans were not met, as the student was incorrectly packaged for a loan in their final semester.
  • Recommended Follow-Up: Return the $762 to the Department of Education and enhance controls in the financial aid department to prevent future errors.

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.

Categories

Questioned Costs Student Financial Aid Eligibility Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.37M
84.425 Education Stabilization Fund $1.30M
84.063 Federal Pell Grant Program $1.13M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $120,501
84.033 Federal Work-Study Program $73,404
84.007 Federal Supplemental Educational Opportunity Grants $59,433
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $1,000