Report Summary
State University System
Student Financial Aid Programs
Management Letter
For Fiscal Year 1994
| Public Release Date: June 16, 1995 |
No. 95-25 |
Objectives
Test compliance with certain finance-related legal provisions
relating to selected federal student financial aid programs
administered by the State University System. We included the
following federal programs: Federal Family Educational Loans (FFEL),
Federal Perkins Loans, and Federal Pell Grants.
Review significant internal control structure policies and
procedures concerning federal student financial aid including:
federal financial aid revenues and cash management and federal
financial aid packaging and disbursements on selected state
university campuses, as well as theFederal Perkins loan management
and repayment process.
Conclusions
We found 11 areas where the State University System or the
individual universities had not complied with federal regulations
and 6 areas where internal controls need to be improved.
-
Mankato State University awarded one student in excess of the
Federal Family Education Loans (FFEL) annual limit, has not
reconciled its accounting records to the local bank account since
July, 1994, overawarded one student during the 1993-94 school
year, and did not request all financial aid transcripts on
transfer students timely.
-
Metropolitan State University has inadequate controls over federal
student financial aid packaging, has no financial aid refund
policy, and has inappropriately retained Pell grant funds.
-
Moorhead State University does not make the required number of
contacts with Federal Perkins borrowers during the grace period.
-
St. Cloud State University does not comply with financial aid
transcript requirements or with FFEL exit counseling requirements
for certain students.
-
Winona State University overawarded one student during the 1994-95
school year, did not define exceptional need for awarding Federal
Perkins loans, improperly calculates Perkins loan repayments, and
did not receive federal reimbursement for $4,176 in Pell grants.
