Finding 9715 (2023-002)

Significant Deficiency
Requirement
P
Questioned Costs
$1
Year
2023
Accepted
2024-01-24

AI Summary

  • Core Issue: Three students were over awarded Federal Work Study (FWS) funds, violating federal regulations on financial aid limits.
  • Impacted Requirements: Compliance with 34 CFR 673.5(a), which restricts total financial aid to not exceed a student's financial need.
  • Recommended Follow-Up: The College should revise its award packaging policies to prevent future over awards.

Finding Text

2023– 002 – Federal Work Study (FWS) Over Award Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.033 Award Period: 7/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Per ED regulations an institution may only award FWS employment to a student if the award, combined with the other estimated financial assistance the student receives, does not exceed the student’s financial aid 34 CFR 673.5(a). Condition: In our sample of 40 students tested, three students were over awarded through the receipt of FWS employment. Questioned Costs: $4,230 Context: Three students out of a sample of 40 were provided with FWS employment when their financial need was already met. Cause: These students were over awarded during the award packaging process and resulted from human error. Effect: The College is not in compliance with the federal regulations. Repeat Finding: No. Auditors’ Recommendation: The College should review its policies and procedures when packaging students for FWS. Views of Responsible Officials: See attached corrective action plan.

Corrective Action Plan

2023-002 – Federal Work Study (FWS) Over Award – Federal Assistance Listing No. 84.033 Recommendation: We recommend the College review its policies and procedures when packaging students for FWS. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: The Financial Aid Office acknowledges that three students on the preliminary list of Title IV recipients provided to the auditors reflected an over-award based on the inclusion of FWS funds in their packages. All students are initially packaged through automated packaging, with the College’s software preventing over-awards. However, many awards are adjusted during the course of an academic year, and when this happens, the software’s checks no longer operate. To ensure compliance, the Financial Aid Office conducts ongoing audits throughout the year and a final audit at the end of each year, which also incorporates a final reconciliation of the FWS program. This year, the FWS/final audit was not completed before the preliminary list was submitted to the auditors. Had the audit been completed on time, the three students would not have shown as over-awards, nor would they be counted as FWS recipients. Corrective Action Plan The Financial Aid Office already audits financial aid packages to prevent over-awards. The office will ensure that such audits are completed in a timelier fashion, resulting in a proper final list of Title IV recipients to be submitted for audit review. Name(s) of the contact person(s) responsible for corrective action: Michael Colahan, Student Financial Aid Director Planned completion date for corrective action plan: Effective November 2023

Categories

Questioned Costs Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 9710 2023-001
    Significant Deficiency
  • 9711 2023-001
    Significant Deficiency
  • 9712 2023-001
    Significant Deficiency
  • 9713 2023-001
    Significant Deficiency
  • 9714 2023-001
    Significant Deficiency
  • 586152 2023-001
    Significant Deficiency
  • 586153 2023-001
    Significant Deficiency
  • 586154 2023-001
    Significant Deficiency
  • 586155 2023-001
    Significant Deficiency
  • 586156 2023-001
    Significant Deficiency
  • 586157 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.93M
84.063 Federal Pell Grant Program $1.16M
12.000 Department of Defense $382,091
84.007 Federal Supplemental Educational Opportunity Grants $235,224
47.075 Social, Behavioral, and Economic Sciences $203,632
93.859 Biomedical Research and Research Training $167,916
93.242 Mental Health Research Grants $140,985
93.172 Human Genome Research $138,322
47.070 Computer and Information Science and Engineering $136,280
84.033 Federal Work-Study Program $125,058
47.074 Biological Sciences $102,299
93.867 Vision Research $75,927
43.001 Science $65,149
84.038 Federal Perkins Loan Program $54,237
47.049 Mathematical and Physical Sciences $44,476
96.007 Social Security_research and Demonstration $10,000
47.050 Geosciences $9,139