Finding 1114317 (2024-001)

2024 ‐ 001: Significant Deficiency in Internal Controls over Compliance and Noncompliance— Special Tests and Provisions - Disbursement to or on Behalf of Students. Federal Program – Student Financial Aid Cluster Federal Agency – U.S. Department of Education Criteria — In accordance with 34 CFR 668.165(a)(1), before an institution disburses title IV funds for any award year, the institution must notify a student of the amount of funds that the student or his or her parent can expect to receive under each title IV program and how and when those funds will be disbursed. Condition and Perspective — The university did not have adequate internal controls to ensure the notifications to students regarding the disbursements of title IV funds were retained. Accordingly, we could not verify if the university appropriately notified the students of the disbursements. Cause — The university has an automated process that notifies the students of their receipt of title IV funds. Once the process is executed, the output or result is overwritten daily, thereby deleting all evidence of the notification process. Effect — The failure to maintain adequate evidence of the design, implementation and operation of controls over compliance could lead to noncompliance with the terms and conditions of federal awards and potential loss of funding. Questioned Cost — N/A Recommendation — The university should design processes to ensure that evidence of their controls design, implementation and operation are maintained to support the compliance with the terms and conditions of their grant awards. View of Responsible Officials — See Corrective Action Plan.