Audit 379857

Finding 2025-001: Student Student Eligibility/Special Test and Provision Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster (84.007, 84.033, 84.063, 84.268) Criteria: In accordance with 34 CFR 668.165 (a), before an institution disburses title IV program funds for any award year, the institution must notify a student of the amount of funds that the student or his or her parent can expect to receive under each title IV program and how and when those funds will be disbursed. Additionally, when Direct Loans are being credited to a student's account, the institution must notify the student, or parent, in writing of the date and amount of disbursement, as well as the timing and process by which a parent may cancel the loan. The notification process is often completed by either an award letter or college financing plan. Controls were not in place to ensure College financing plans were emailed to all required students and/or parents that made the required notifications for Title IV program funds or that notifications were sent to students/parents with required communications regarding Direct Loan awards. Condition: The College notifies students of Title IV Funds by emailing a College Financing Plan to the student and/or parent. The College notifies students of Direct Loan awards and information through email notification via its financial aid system. Controls were not in place to ensure College financing plans that made the required notifications for Title IV program funds were emailed to all required students and/or parents or that notifications were sent to students/parents with required communications regarding Direct Loan awards. Cause: The College does not have a system in place to verify that everyone who received Title IV funding received a College Financing Plan or that all students receiving Direct Loans received required communications. Effect: As sampled, the College did not provide notification via a College Financing Plan of Title IV funding to two of its students as required and potentially could have additional students that did not receive proper notification. The College also did not provide notification of Direct Loan Awards to seven of its students, as sampled, as required and potentially could have additional students that did not receive proper notification. Repeat Finding: This is a repeat finding. Questioned costs: None Recommendation: We recommend that the College implement additional procedures to ensure all students receive notification of Title IV funding and Direct Loans as required under 34 CFR 668.165 (a). View of Responsible Officials and Planned Corrective Action: Management agrees, see separate Corrective Action Plan.