Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 84.268; U.S. Department of Education; Student Financial Assistance Cluster; Federal Direct Student Loan Program
Federal Award Identification Number and Year - June 1, 2022 to May 31, 2023
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - Yes
2021-013, 2022-009
Criteria - In accordance with 34 CFR 682.604, a Direct Loan student borrower who is graduating, leaving school, or dropping below half time enrollment is required to complete exit counseling.
Condition - The School does not have evidence that exit counseling was provided to students who withdrew or graduated, as required by 34 CFR 682.604.
Questioned Costs - None
Context - During our testing, the School was unable to provide evidence that exit counseling was completed for eight students who withdrew or graduated during the audit period.
Cause and Effect - The School does not have a process in place to ensure that student borrowers who graduate, withdraw, or drop below half time enrollment complete exit counseling in accordance with federal regulations.
The lack of controls to ensure student borrowers who graduate, withdraw, or drop below half time enrollment complete exit counseling results in noncompliance with federal regulations.
Recommendation - We recommend management implement controls to ensure that student borrowers who graduate, withdraw, or drop below halftime enrollment complete exit counseling in accordance with federal regulations.
Views of Responsible Officials and Planned Corrective Actions - There is no disagreement with the audit finding. The Iliff School of Theology has contracted with a professional, third party processing company to administer its student assistance programs. The School has also ensured that this third party processor is properly coordinated with the registrar’s office to meet federal requirements for exit counseling when status changes are processed.