Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.007 – Federal Supplemental Educational Opportunity Grants
84.033 – Federal Work-Study Program
84.038 – Federal Perkins Loan Program
84.063 – Federal Pell Grant Program
84.268 – Federal Direct Student Loans
Award Period: July 1, 2022 to June 30, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or Specific Requirement: Per the Code of Federal Regulations, 34 CFR 673.5, students may not be under awarded need-based aid in excess of their calculated need. In addition, 34 CFR 685.203(j) states that in no case may a loan amount exceed the student’s estimated cost of attendance for the period of enrollment for which the loan is intended less the student’s estimated financial assistance for that period and in the case of Direct Subsidized Loans, the borrower’s expected family contribution for that period.
Condition: During our testing, we noted for 2 out of 40 students tested, there was an under award of need-based aid in the amount of $2,062 as total aid paid was lower than it should have been relating to the student's total need in the 2022-23 academic year.
Questioned Costs: $2,062
Context: Two students aid should have been repackaged after the College accepted their transfer credits, thus causing an under award in need-based aid.
Cause: Management incorrectly awarded these students based on their transfer credits and financial need.
Effect: The College is not in compliance with Department of Education requirements.
Repeat Finding: No
Auditor’s Recommendation: We recommend the College implements policies to review all student award packages at the start of the academic year to ensure no over awards exist.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.