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.
