Finding 10287 (2023-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-01-26

Audit: 13927

Organization: Laramie County Community College (WY)

Auditor: McGee Hearne & Paiz LLP

AI Summary

Core Issue: The College failed to notify a student about their eligibility for post-withdrawal loan funds within the required 30 days.
Impacted Requirements: This violates 34 CFR 668.22(a)(6)(iii)(A), which mandates written notification to students or parents regarding post-withdrawal disbursements.
Recommended Follow-Up: The Student Financial Aid Office should establish a control system to ensure timely notifications for post-withdrawal eligibility before disbursement.

Finding Text

Criteria: 34 CFR 668.22(a)(6)(iii)(A) requires an institution to provide, within 30 days of the date the institution determines that a student has withdrawn, written notification to the student, or the parent in the case of a Parent PLUS loan, detailing the specific items outlined in paragraphs 1-5 of the aforementioned section. Condition/context: Of the 20 students selected for testing the proper return of Title IV funds, we noted one instance in which the student was eligible for a post-withdrawal disbursement of loan funds. In this instance, the College did not provide written notification to the student and the student was disbursed loan funds. Cause: The Student Financial Aid Office does not have a control in place to ensure that it provides written notification of post-withdrawal eligibility prior to a disbursement. Effect: The College could disburse funds to students or parents who did not wish to receive them. Questioned costs: None. Identification as a repeat finding: No. Recommendation: The Student Financial Aid Office should implement a control to ensure that the proper notification is sent to students who are eligible for a post-withdrawal disbursement. Views of responsible officials: Management concurs with the finding. See Exhibit I for the corrective action plan.

Corrective Action Plan

Corrective Action: The College’s Return of Title IV Funds procedure was reviewed. The following language was revised in the post-withdrawal disbursement (PWD) section of this procedure as a control to ensure that advanced written notification is not missed in the future: A written notification will be sent to a student (or parent) that is eligible for a PWD of Federal Direct Loan within 30 days of the date of determination. The type and amount of Title IV loan funds that will be credited to the student’s charges and the amount that will directly disburse will be offered to the student, or the parent in the case of a PLUS Loan. The notification will explain that the student or parent can accept all or part of the loan disbursement and will advise the student or parent that no post-withdrawal disbursement of Title IV loan funds will be made unless the school receives a confirmation response within the established timeframe of 14 days. Please note that loan PWDs are very rare at the College because the vast majority of our students that wish to borrow complete their loan requirements and receive their loan disbursement prior to their withdrawal date. In the case of the student noted in the finding, the student completed his loan requirements (i.e., master promissory note and loan entrance counseling) only a couple of days before the date he became ineligible. We acknowledge an advanced written notice was not sent, but please note that a written notification was sent to the student immediately following the loan disbursement informing the student about his right to cancel all or part of the loan and the procedures and timeframe in which to do so. Anticipated Completion Date: July 1, 2023 Contact Person: Brandi Payne Cervera

Other Findings in this Audit

10288 2023-003

Significant Deficiency
10289 2023-003

Significant Deficiency
10290 2023-003

Significant Deficiency
10291 2023-003

Significant Deficiency
586729 2023-002

Significant Deficiency
586730 2023-003

Significant Deficiency
586731 2023-003

Significant Deficiency
586732 2023-003

Significant Deficiency
586733 2023-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.268	Federal Direct Student Loans	$4.20M
84.063	Federal Pell Grant Program	$4.18M
11.307	Economic Adjustment Assistance	$1.78M
21.027	Coronavirus State and Local Fiscal Recovery Funds	$558,472
93.575	Child Care and Development Block Grant	$462,100
84.334	Gaining Early Awareness and Readiness for Undergraduate Programs	$386,800
84.425	Education Stabilization Fund	$276,028
84.048	Career and Technical Education -- Basic Grants to States	$209,799
93.859	Biomedical Research and Research Training	$154,744
84.007	Federal Supplemental Educational Opportunity Grants	$104,122
84.033	Federal Work-Study Program	$32,008
17.259	Wia Youth Activities	$22,500
94.021	Volunteer Generation Fund	$19,613
84.002	Adult Education - Basic Grants to States	$13,566
10.664	Cooperative Forestry Assistance	$1,229