Finding 967593 (2023-003)

- Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-04-01
Audit: 301753
Auditor: Sikich LLP

AI Summary

  • Core Issue: Two students were overawarded Federal Direct loans, violating eligibility criteria for first-year students.
  • Impacted Requirements: The maximum allowable loans are $3,500 for subsidized and $6,000 for unsubsidized loans per academic year.
  • Recommended Follow-Up: Refund $1,056 to the Department of Education and enhance controls over Direct Loan processing.

Finding Text

Finding 2023-003: Overaward Federal Direct loans Compliance Requirement: Eligibility (E.) Criteria: A first year student can receive up to $3,500 in subsidized loans and $6,000 in unsubsidized loans in one academic year (34 CFR 685.203). Condition: We tested sixty-four files, fifty-five of which were Federal Direct Loan recipients, and two students were overawarded Federal Direct loans. We consider this finding to be an instance of non-compliance and is a repeat finding shown in Section IV of this report as prior year Finding 2022-004. Cause: The condition was caused by using an incorrect number of credits while calculating the remainder of the programs, which was less than an academic year in length. Effect: The result is the students received ineligible loan proceeds. Question Costs: $1,056 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $1,056 to the Department of Education and increase controls over Direct Loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Categories

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

Other Findings in this Audit

  • 391145 2023-002
    Significant Deficiency Repeat
  • 391146 2023-004
    Material Weakness Repeat
  • 391147 2023-005
    Significant Deficiency Repeat
  • 391148 2023-006
    - Repeat
  • 391149 2023-007
    -
  • 391150 2023-008
    Significant Deficiency
  • 391151 2023-003
    - Repeat
  • 391152 2023-004
    Material Weakness Repeat
  • 391153 2023-005
    Significant Deficiency Repeat
  • 391154 2023-006
    - Repeat
  • 391155 2023-007
    -
  • 391156 2023-008
    Significant Deficiency
  • 967587 2023-002
    Significant Deficiency Repeat
  • 967588 2023-004
    Material Weakness Repeat
  • 967589 2023-005
    Significant Deficiency Repeat
  • 967590 2023-006
    - Repeat
  • 967591 2023-007
    -
  • 967592 2023-008
    Significant Deficiency
  • 967594 2023-004
    Material Weakness Repeat
  • 967595 2023-005
    Significant Deficiency Repeat
  • 967596 2023-006
    - Repeat
  • 967597 2023-007
    -
  • 967598 2023-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $714,293
84.063 Federal Pell Grant Program $303,590