Faith Baptist Bible College and Theological SeminaryHigher Education

Finding 2025-001: Application of Professional Judgment Significant Deficiency Criteria: Management is responsible for establishing and maintaining internal controls over compliance with the major federal award program and determining student eligibility under the Student Financial Assistance Cluster, including the calculation of benefits. As part of this calculation, College financial aid personnel have the authority to use professional judgment to adjust a student's cost of attendance or alter the data elements used to calculate a student's student aid index on a case-by-case basis to allow for special circumstances. Condition: During the audit, we determined the calculation of benefits for certain students for whom professional judgment was incorrect. Cause: The authorization to use professional judgment in the calculation of a student's benefits was new for the 2024-2025 academic year. While the College implemented this authority, an independent review of the professional judgment calculations was not performed. Effect: Certain students received more student financial aid than they were eligible for. Questioned Costs: Questioned costs of $37,591 were identified in relation to the use of professional judgment when calculating a student's financial aid benefits. This amount was determined by recalculating the student financial aid benefits for each student for whom professional judgment was used and comparing the calculated benefit amount to the student financial aid amount the student received. Recommendation: We recommend implementation of an independent review when professional judgment is applied when calculating a student's financial aid benefits. Views of Responsible Officials: The College agrees with the finding and will adhere to the corrective action detailed in the Corrective Action Plan.