Finding 640524 (2022-003)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2022-10-24

AI Summary

  • Core Issue: Grants issued by the Institute included academic and performance requirements, which led to a failure in prioritizing students with exceptional need.
  • Impacted Requirements: Compliance with the Education Stabilization Fund guidelines, specifically the need to prioritize students with exceptional need over those with academic or attendance conditions.
  • Recommended Follow-Up: Implement controls and procedures to ensure future grants prioritize students with exceptional need, aligning with the fund's criteria.

Finding Text

2022-003 Student Aid Grants Criteria - When making grants to students under the Education Stabilization Fund - student aid portion, institutions must prioritize students with exceptional need. The Higher Education Emergency Relief Fund III Frequently Asked Questions, question #12 further states that if the institution established preconditions for students to receive emergency financial aid grants (e.g., (1) establishing a minimum GPA, (2) imposing other academic or athletic performance or good standing requirements, (3) requiring continued enrollment in the institution or (4) required the student to first pay any outstanding debt or balance) that results in failure to prioritize students with exceptional need. Condition - During fiscal year 2022, the Institute incurred expenses for student aid grant payments that contained academic, performance or attendance provisions: ? $17,000 of student aid grants established a minimum GPA ? $12,000 of student aid grants included performance measures ? $16,000 of student aid grants were paid to students that had been nominated by high school counselors for attendance at the Institute ? $6,759 of student aid grants were for students with parents who graduated from the institution Effect - As a result of grants containing academic or attendance provisions, students with exceptional need were not prioritized. Cause - The identified non-compliance was caused by the interpretation of how to ?prioritize students with exceptional need.? The root of this cause was the fluid nature of guidance on administrating Educational Stabilization Funds and how the guidance would ultimately be interpreted. Questioned Costs - $51,759 Context - During fiscal year 2022, the Institute incurred expenses for student aid grant payments totaling $275,050. Of this amount, it was noted that student aid grants issued totaling $51,759 contained academic or attendance provisions. Recommendation - We recommend that the Institute establish controls and procedures to ensure that grants to student under the Education Stabilization Fund - student aid portion prioritize students with exceptional need. Response - It is our position that students with an exceptional need were prioritized through the Cares Student Emergency Hardship Grant. Throughout the funding period students with exceptional or acute need have had access to an emergency grant application. Applications are reviewed by a committee and awarded for eligible expenses to students who demonstrate exceptional need. All enrolled students have access to this application. Conclusion - Response accepted.

Categories

Questioned Costs Special Tests & Provisions

Other Findings in this Audit

  • 64082 2022-003
    Material Weakness
  • 64083 2022-004
    Significant Deficiency
  • 64084 2022-005
    Significant Deficiency
  • 64085 2022-005
    Significant Deficiency
  • 640525 2022-004
    Significant Deficiency
  • 640526 2022-005
    Significant Deficiency
  • 640527 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $529,045
84.425 Education Stabilization Fund $269,755
84.063 Federal Pell Grant Program $157,808
84.007 Federal Supplemental Educational Opportunity Grants $20,021
84.033 Federal Work-Study Program $11,883