Audit 386649

U.S Department of Education Student Financial Assistance Cluster Federal Direct Student Loans, Assistance Listing 84.268 Criteria: The University must comply with 34 CFR 668.22. Condition: We tested nine official withdrawal samples as part of Return of Title IV Funds testing. Of those nine samples, one student had received a post-withdrawal disbursement of federal subsidized and unsubsidized direct loans. The student did not receive written notification that is required of federal loan post-withdrawal disbursement. Upon further evaluation by the University’s management, there were two additional students who received a post-withdrawal disbursement of federal loans without receiving the required communication. Cause: For the Fall 2024 semester, the University did not have a procedure in place to properly send students or student’s parents the required communication of federal loan post-withdrawal disbursements. Effect: The provisions of 34 CFR 668.22 were not followed and thus the students were not notified of the required communication related to a post-withdrawal disbursement of federal direct loans. Questioned Costs: There were no questioned costs associated with this finding. Recommendation: We recommend that the University update their internal controls related to post-withdrawal disbursements and send required communications prior to making a post-withdrawal disbursement of federal loans. Views of responsible officials and planned corrective actions: We agree with this finding and recommendation. Procedures have been updated to ensure that required written notifications are sent to students or parents in accordance with 34 CFR 668.22 prior to, or in conjunction with, any post-withdrawal disbursement of federal direct loans. Staff have been trained on the revised procedures, and controls are in place to ensure that required communications are sent timely and documented. Management will continue to monitor this process to confirm ongoing compliance.