Finding Text
Common Origination and Disbursement (COD) Reporting DEPARTMENT OF EDUCATION
ALN #: 84.268 and 84.063
Federal Award Identification #: 2023-2024 Award Year
Condition: For the Spring 2024 term, the dates that Pell and Federal Direct Loans (FDL) awards were posted to student accounts did not always agree to disbursement records reported to Common Origination and Disbursement (COD).
Criteria: 34CFR 668.164(a)
Questioned Costs: $0
Context: Out of 60 students tested, all students tested that had aid disbursed in the Spring 2024 term had COD loan and Pell disbursement date errors ranging from 4 to 21 days. There were no errors in the amounts reported.
Cause: Due to unexpected turnover in the financial aid office, reconciliations of Life Pacific University records to COD were not being completed regularly. This led to errors between the two systems not being identified in a timely manner.
Effect: Inaccurate FDL reporting can impact a student's interest accumulating period based on the dates of the loan disbursement dates. Inaccurate Pell reporting could allow a student to exceed their lifetime limit.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend that Life Pacific University implement procedures to reconcile monthly FDL and Pell disbursements to student accounts with disbursements reported to COD.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.