Finding Text
2023-001: Student Financial Assitance Cluster – Eligibility – Award Limits
Federal Program: Student Financial Assistance Cluster; Federal Direct Student Loans
Assistance Listing Number: 84.268
Federal Agency: U.S. Department of Education
Pass-Through Entity: None
Federal Awards Identification Number: P268K161537
Repeat Finding: This is not a repeat finding
Criteria - In accordance with limits set by the Department of Education, students can receive Unsubsidized and Subsidized loans, with the loan amounts based on the student’s year in school and their status as an independent or a dependent.
Condition and context – During our test work over Unsubsidized and Subsidized loans, we noted two students in our sample selected who were each awarded $1,000 less than they were eligible for based on their year in school. We noted one student who was awarded $1,000 more than they were eligible for based on their year in school. The sample selected was a statistically valid sample.
Cause – Insufficient review of student data prior to loan approval.
Effect or Potential Effect – The Academy did not award Unsubsidized and Subsidized loans in accordance with Department of Education criteria.
Questioned Costs - $1,000. Questioned costs were determined based on the loan more than the allowable amount. Questioned costs related to assistance listing number 84.248.
Recommendations – We recommend that management enhance control procedures to ensure that student data is sufficiently reviewed prior to loan disbursements being made.
Management’s Views and Corrective Action Plan – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.Criteria - In accordance with limits set by the Department of Education, students can receive Unsubsidized and Subsidized loans, with the loan amounts based on the student’s year in school and their status as an independent or a dependent.
Condition and context – During our test work over Unsubsidized and Subsidized loans, we noted two students in our sample selected who were each awarded $1,000 less than they were eligible for based on their year in school. We noted one student who was awarded $1,000 more than they were eligible for based on their year in school. The sample selected was a statistically valid sample.
Cause – Insufficient review of student data prior to loan approval.
Effect or Potential Effect – The Academy did not award Unsubsidized and Subsidized loans in accordance with Department of Education criteria.
Questioned Costs - $1,000. Questioned costs were determined based on the loan more than the allowable amount. Questioned costs related to assistance listing number 84.248.
Recommendations – We recommend that management enhance control procedures to ensure that student data is sufficiently reviewed prior to loan disbursements being made.
Management’s Views and
Corrective Action Plan – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.