Finding 641716 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-05

AI Summary

  • Core Issue: A significant deficiency in internal controls led to a student being under awarded $1,000 in their Unsubsidized Stafford Loan.
  • Impacted Requirements: Compliance with 34 CFR 685.203(a) regarding maximum loan amounts and 2 CFR 200.303 for maintaining internal controls.
  • Recommended Follow-Up: The College should review and improve its procedures for manually entering loan request information to prevent future errors.

Finding Text

U.S. Department of Education 2022-002: Student Eligibility and Awarding Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 ? Federal Direct Student Loans Federal Award Identification Number and Year: P268K221182- 2022 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: The Code of Federal Regulations, 34 CFR 685.203(a) outline the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors. In addition, 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition: During our testing, we noted 1 instance out of 40 students tested at the College where the Unsubsidized Stafford Loan awarded to the student was less than the maximum amount they were eligible for. Questioned Costs: For the instances identified, each student was under awarded $1,000. Context: The College awarded $751,965 in Direct Loans during the year. Cause: Typographical error based on the department staff member using the values on the student?s loan request form. Effect: For the instance identified, the student was under awarded the unsubsidized portion of the Stafford Loan. Repeat Finding: This was not a finding in the prior year. Recommendation: We recommend the College to evaluate its procedures related to the manual input of information from the student loan request. Views of responsible officials: Management concurs with the finding and plans to correct the finding.

Categories

Questioned Costs Matching / Level of Effort / Earmarking Student Financial Aid Eligibility Significant Deficiency

Other Findings in this Audit

  • 21441 2022-001
    Significant Deficiency Repeat
  • 21442 2022-004
    Significant Deficiency
  • 21443 2022-001
    Significant Deficiency Repeat
  • 21444 2022-003
    Significant Deficiency
  • 21445 2022-004
    Significant Deficiency
  • 65268 2022-001
    Significant Deficiency Repeat
  • 65269 2022-003
    Significant Deficiency
  • 65270 2022-004
    Significant Deficiency
  • 65271 2022-001
    Significant Deficiency Repeat
  • 65272 2022-004
    Significant Deficiency
  • 65273 2022-001
    Significant Deficiency Repeat
  • 65274 2022-002
    Significant Deficiency
  • 65275 2022-004
    Significant Deficiency
  • 65276 2022-005
    Material Weakness
  • 597883 2022-001
    Significant Deficiency Repeat
  • 597884 2022-004
    Significant Deficiency
  • 597885 2022-001
    Significant Deficiency Repeat
  • 597886 2022-003
    Significant Deficiency
  • 597887 2022-004
    Significant Deficiency
  • 641710 2022-001
    Significant Deficiency Repeat
  • 641711 2022-003
    Significant Deficiency
  • 641712 2022-004
    Significant Deficiency
  • 641713 2022-001
    Significant Deficiency Repeat
  • 641714 2022-004
    Significant Deficiency
  • 641715 2022-001
    Significant Deficiency Repeat
  • 641717 2022-004
    Significant Deficiency
  • 641718 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Pell Grant $6.76M
84.425 Covid-19 Heerf - Student Aid $6.07M
84.425 Covid-19 Heerf - Institutional $5.27M
84.268 William D. Ford Direct Loan Program $751,965
84.048 Perkins Title I-C (basic Grants to States) $405,392
84.007 Supplemental Educational Opportunities Grant (seog) $184,584
84.033 Federal Work Study (fws) $168,340
12.600 California Advanced Defense Ecosystems & National Consortia Effort (cadence) $156,646
93.658 Foster-Kinship Care Education $78,451
12.617 California Advances Supply Chain Analysis & Diversification Effort (cascade) $64,635
93.558 Temporary Assistance for Needy Families (tanf) $62,782
10.558 Child Care Food Program $31,974
84.063 Student Financial Aid Administrative Allowance $8,534
64.028 Veteran Assistance Title 38 $1,650