Audit 380355

FINDING 2025-001: MISSING PROOF OF LOAN EXIT COUNSELING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 FEDERAL AWARD YEAR: 2024-2025 Compliance Requirement: N. Special Tests and Provisions - Disbursements Criteria: Each student that receives Federal Direct Loans is required to have entrance counseling before release of the first disbursement and exit counseling when they withdraw, graduate, or drop (34 CFR 685.304). Condition: We tested thirty-seven files, of which all were Federal Direct Loan recipients, and proof of loan exit counseling was missing for one student. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result of not conducting exit counseling is students may be uninformed about the responsibilities and consequences of borrowing funds. Question Costs: $6,761 Statistical sampling was not used when making sample selections. Recommendation: As the Institution has since provided the missing exit counseling to the student, we recommend the Institution improve control over exit interviews. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.