Audit 385194

Finding – Reporting: Financial Reporting - Student Financial Assistance Cluster, Assistance Listing #84.063 and #84.268, June 30, 2025 Award Year, U.S. Department of Education Criteria or Specific Requirement Institutions submit Direct Loan, Pell Grant, TEACH Grant, and IASG origination records to the COD ("Common Origination and Disbursement") system. The disbursement record reports the actual disbursement date and the amount of the disbursement. Institutions must report student disbursement data within 15 calendar days after the institution makes the disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. (July 2024 OMB Compliance Supplement pages 5-3-26 and 5-3-27) The date of disbursement determines when a student becomes a federal student aid (FSA) recipient and has the rights and responsibilities of an FSA recipient. A disbursement occurs when the School credits a student’s account or pays a student or parent directly with: • FSA funds received from the Department; or • School funds labeled as FSA funds in advance of receiving actual FSA funds. (Student Financial Aid Handbook, Volume 4, Chapter 2) Condition Found One of the 15 students selected for disbursement reporting had errors in the information that was reported to COD as follows: • The disbursement date reported was different from the actual disbursement date by one day • The cost of attendance that was reported to COD was different by $20 • The incorrect parent was identified as the borrower in the initial submission to COD Questioned Costs None. Cause PLUS loans were disbursed one day after all other federal aid was disbursed during the fall semester, and the College incorrectly reported PLUS loans as disbursed on the same day as other aid. The cost of attendance was reported incorrectly due to an administrative error. Both the student’s mother and father completed the PLUS loan application, and an error within the College’s ERP system caused the loan to be originated under the mother’s name, whereas the loan should have been originated in the father’s name. Effect Disbursement date reported to COD is utilized to trigger interest accrual, therefore interest charged is incorrect by 1 day. Incorrect cost of attendance reporting could impact the Department of Education’s ability to accurately analyze and understand loan data. An incorrect borrower identified on an initial PLUS loan impacts the individual responsible for repayment of the PLUS loan. Identification as a Repeat Finding This is not a repeat finding.