Finding Text
Finding 2023-003: Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency)
Statement of Condition: From our testing sample of thirty-five (35) students, we found eight (8) instances where student award letters were not retained and thus federal award data per the federal award register could not be vouched.
Criteria: Student records should be retained in accordance with the Federal Student Aid Handbook, Volume 2, Chapter 7, to “show a clear audit trail for FSA program expenditures.” In addition, the College’s Financial Aid Office Policies for Awarding Financial Aid states “a copy of the student’s award letter is kept in the student’s folder.”
Effect of Condition: We found eight (8) instances where student award letters were not retained.
Cause of Condition: The College does not consistenly follow their internal policies.
Recommendation: We recommend the College develop policies and procedures to address this issue.
Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.