Finding 961424 (2023-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-03-26
Audit: 298024
Auditor: Blue & CO LLC

AI Summary

  • Core Issue: The Seminary lacks documentation for the annual evaluation of student satisfactory academic progress, despite performing manual evaluations.
  • Impacted Requirements: Federal regulations require that students receiving financial aid maintain satisfactory academic progress, which must be documented.
  • Recommended Follow-Up: Management should update procedures to ensure that evaluations are documented in the student management system or elsewhere to comply with federal requirements.

Finding Text

MATERIAL WEAKNESS, Document Satisfactory Academic Progress Evaluation, Information on the federal program: U.S. Department of Education, Assistance Listing No. 84.268; Federal Direct Student Loan Program, Criteria: Students awarded financial aid must meet certain eligibility requirements including maintaining satisfactory academic progress. Condition: The Seminary did document the evaluation of student satisfactory academic progress. Context: Out of a population of 50 students who received aid under the student financial aid cluster, we sampled 10. No documentation of the annual evaluation of satisfactory academic progress was maintained either within or outside of the student management system. None of the sample of 10 were found to not have achieved satisfactory academic progress. Questioned Costs: None Cause: Manual evaluations are being performed in accordance with the Seminary's policy but are not documented within the student management software. Effect: No documentation exists that the annual evaluation was performed. Recommendation: We recommend that management adjust its procedures to document the annual evaluation either within our outside of the student management software. Views of responsible officials and planned corrective actions: Management acknowledges this finding and is working on documentation to remove this deficiency in the future. Satisfactory academic progress is being calculated, but lack of paperwork by the Seminary made this finding necessary. The Seminary financial aid department will work on documenting processes moving forward.

Categories

Eligibility Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 384982 2023-002
    Material Weakness
  • 384983 2023-003
    Material Weakness
  • 384984 2023-004
    Material Weakness
  • 961425 2023-003
    Material Weakness
  • 961426 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $802,407
84.425 Education Stabilization Fund $28,283
84.033 Federal Work-Study Program $4,323