Finding 638202 (2022-002)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-03-12
Audit: 56907
Organization: Arizona Christian University (AZ)

AI Summary

  • Core Issue: The University failed to properly assess student eligibility for federal aid, leading to overawards and missed requirements.
  • Impacted Requirements: Compliance with Pell Grant disbursement rules, TEACH grant GPA standards, and timely exit counseling for loan borrowers.
  • Recommended Follow-Up: Review and improve procedures for verifying eligibility and conducting exit counseling to ensure compliance with federal regulations.

Finding Text

2022-002 Eligibility Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster ALN Numbers: Various Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ?Significant Deficiency in Internal Control Over Compliance ?Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 690.62, states the amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. In addition, the Code of Federal Regulations, 34 CFR 686.11, states to be eligible for a TEACH grant, a student beyond the first year of an undergraduate program must have a cumulative GPA of at least 3.25. Lastly, the Code of Federal Regulations, 34 CFR 682.604 states a school must ensure that exit counseling is conducted with each direct loan borrower within 30 days after learning the student borrower has withdrawn from school. Condition: During our testing, we noted for 1 out of 40 students tested, they were over awarded and over disbursed Pell grant funds. In addition, for 1 out of 40 students tested, we noted they were not meeting the minimum GPA requirements to be eligible for a TEACH grant. Furthermore, 2 out of 40 students did not receive their exit counseling timely. Questioned Costs: $6,000 Context: During our testing, it was noted an erroneous computation of the student?s eligibility resulted in a Pell grant over award. It was noted all the eligibility requirements were not reviewed for TEACH grants. Lastly, exit counseling was not done timely. Cause: The University did not have procedures in place to detect these eligibility issues. Effect: The University is not in compliance with Department of Education requirements. Repeat Finding: No Recommendation: We recommend the University review their procedures surrounding eligibility and exit counseling to ensure all students are receiving federal aid they are eligible for as well as being sent exit counseling timely upon leaving the University. Views of Responsible Officials: There is no disagreement with the audit finding

Categories

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

Other Findings in this Audit

  • 61747 2022-001
    Significant Deficiency Repeat
  • 61748 2022-002
    Significant Deficiency
  • 61749 2022-003
    Significant Deficiency
  • 61750 2022-001
    Significant Deficiency Repeat
  • 61751 2022-002
    Significant Deficiency
  • 61752 2022-003
    Significant Deficiency
  • 61753 2022-001
    Significant Deficiency Repeat
  • 61754 2022-002
    Significant Deficiency
  • 61755 2022-003
    Significant Deficiency
  • 61756 2022-001
    Significant Deficiency Repeat
  • 61757 2022-002
    Significant Deficiency
  • 61758 2022-003
    Significant Deficiency
  • 61759 2022-001
    Significant Deficiency Repeat
  • 61760 2022-002
    Significant Deficiency
  • 61761 2022-003
    Significant Deficiency
  • 638189 2022-001
    Significant Deficiency Repeat
  • 638190 2022-002
    Significant Deficiency
  • 638191 2022-003
    Significant Deficiency
  • 638192 2022-001
    Significant Deficiency Repeat
  • 638193 2022-002
    Significant Deficiency
  • 638194 2022-003
    Significant Deficiency
  • 638195 2022-001
    Significant Deficiency Repeat
  • 638196 2022-002
    Significant Deficiency
  • 638197 2022-003
    Significant Deficiency
  • 638198 2022-001
    Significant Deficiency Repeat
  • 638199 2022-002
    Significant Deficiency
  • 638200 2022-003
    Significant Deficiency
  • 638201 2022-001
    Significant Deficiency Repeat
  • 638203 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loan Program $6.56M
84.063 Federal Pell Grants $1.87M
84.007 Federal Supplemental Educational Opportunity Grant Program $85,329
84.033 Federal Work-Study Program $53,982
84.379 Teach Grants $50,442