Finding Text
U.S. Department of Education
Student Financial Assistance Cluster
Assistance Listing No. 84.007 Federal Supplemental Educational Opportunity Grants;
Assistance Listing No. 84.063 Federal Pell Grant Program;
Assistance Listing No. 84.268 Federal Direct Student Loans
Program Year 2023
Criteria: Special Tests and Provisions – Using a Servicer or Financial Institution to Deliver Title IV Cred Balances to a Card or Other Access Device (34 CFR 668.164(e) and (f).
Condition: The College did not comply with certain requirements of Using a Servicer or Financial Institution to Deliver Title IV Cred Balances to a Card or Other Access Device.
Questioned Costs: None.
Context: The College entered into a contract with a servicer to deliver Title IV credit balances in 2018 but did not provide the contract URL to the Department of Education or include the contract on the College's website. The contract does not include a stated provision that the contract may be terminated based on student complaints nor does it discuss surcharge-free ATMs. The College did not perform a formal due diligence review of the contract fees, as required, every two years. The College did not post fee information within 60 days of the award year to its website and did not send cost information to the Department of Education.
Effect: The College was not in compliance with the requirements noted above.
Cause: The College’s internal controls did not ensure compliance with Department of Education requirements related to using a servicer to deliver Title IV credit balances to students.
Identification as a Repeat Finding, if Applicable: N/A
Recommendation: The College should update its controls to ensure compliance with Department of Education requirements for using a servicer to deliver Title IV funds.
Views of Responsible Officials and Planned Corrective Actions: The College has reviewed the requirement in 34 CFR 668.164(e) and (f) and the required information will be corrected and the information will be submitted to the Department of Education and uploaded to the College's website by October 31, 2024.