Finding Text
2023-004 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: 34 CFR 668.164 (a)(1) states "Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student's ledger account or pays the student or parent directly with
- (i) Funds received form the
Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds;
Condition: Cottey College did not report actual loan disbursement dates to the Common
Origination and Disbursement (COD) system for 5 of the 37 students in the sample (13.5%). We
consider this condition to be a significant deficiency in internal control over compliance relating
to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this
report as prior year finding 2022-003. Statistical sampling was not used in making sample
selections.
Questioned Costs: $16,444
Cause and Effect: Cottey College noted this was an error that occurred but did not occur with the
entire batches.
Recommendation: We recommend Cottey College implement procedures in order to report
accurate disbursements dates for Direct Loans to COD.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.