Finding 648095 (2022-003)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: Significant deficiencies were found in the internal controls over student financial aid documentation.
  • Impacted Requirements: Institutions must keep complete student financial aid files with all necessary eligibility documents.
  • Recommended Follow-Up: Management should ensure all student files are properly documented to support federal aid awards.

Finding Text

Information on the federal program: Student Financial Assistance Cluster; United States Department of Education; Award Year 2021-22; Internal Control Deficiency; Type of Finding: Significant Deficiency in Internal Control over Compliance. Criteria: Institutions should maintain student financial aid files containing all required eligibility documentation and other supporting information. Condition: For many of the student financial aid awards we tested, several items requested were not in the student?s financial aid folders, such as most current award letters, updated student budgets, master promissory notes, loan histories, and entrance/exit counseling. The University was able to provide the requested documentation by other means, in some cases after multiple requests. Cause: The University began initial steps to implement a comprehensive system software change during the current year. The additional time required for this effort, coupled with financial aid office staffing shortages, led to the lack of appropriate review of student aid files to ensure they contained all required documentation. Effect: This issue could have led to students being over-awarded federal financial aid. Questioned Costs: n/a for this finding. Context: Our testing included 64 students. Items not available for review in student aid files, that had to be requested, included: 43 initial or updated award letters, 5 financial aid summaries, 19 entrance/exit counselings, 17 updated student budgets, 17 promissory notes, and 8 loan histories. Recommendations: Management should take steps to ensure that student files contain adequate documentation to support the federal aid amounts awarded. Responsible Official?s Response and Corrective Action Planned: see corrective action plan.

Categories

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

Other Findings in this Audit

  • 71653 2022-003
    Significant Deficiency
  • 71654 2022-003
    Significant Deficiency
  • 71655 2022-003
    Significant Deficiency
  • 71656 2022-003
    Significant Deficiency
  • 71657 2022-002
    -
  • 71658 2022-001
    - Repeat
  • 71659 2022-001
    - Repeat
  • 71660 2022-001
    - Repeat
  • 648096 2022-003
    Significant Deficiency
  • 648097 2022-003
    Significant Deficiency
  • 648098 2022-003
    Significant Deficiency
  • 648099 2022-002
    -
  • 648100 2022-001
    - Repeat
  • 648101 2022-001
    - Repeat
  • 648102 2022-001
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.20M
84.063 Federal Pell Grant Program $1.83M
84.031 Higher Education_institutional Aid $375,694
84.033 Federal Work-Study Program $153,141
84.425 Education Stabilization Fund $141,814
84.007 Federal Supplemental Educational Opportunity Grants $78,149