Finding Text
2024-001 – Notification of Disbursements (Significant Deficiency) Department of Education, SFA Cluster; Compliance Requirement Affected – Special Tests and Provisions Criteria: Prior to making a disbursement, the school must notify students of the amount and type of Title IV funds they are expected to receive, and how and when those disbursements will be made (often referred to as an award letter or college financing plan) (34 CFR 668.165(a)(1)). Condition: One out of twenty-five undergraduate students selected for disbursement testing for the 2023-2024 academic year was not documented as having been notified prior to the disbursement of Title IV funds. Notification failed to occur after the student's enrollment status changed from half-time to three-fourths time enrollment, making them eligible for additional Pell Grant awards. Cause: The University does not have adequate procedures in place to ensure students with a change in enrollment status are notified of additional disbursements after initial award letters have been sent. Effect: The University failed to notify the student of the amount and type of aid to be disbursed, as well as how and when those disbursement will be made. Repeat Finding: No. Recommendation: We recommend the University put procedures in place to ensure that students are notified of any additional Title IV disbursements subsequent to initial offer letters. Management Response: The current enrollment status change process, specifically regarding the additional Pell Grant eligibility, attributed to the failure to deliver timely written notification of an award adjustment. The University is exploring Ellucian Colleague capabilities, including consulting with peer institutions, to develop automated notification processes triggered by enrollment changes impacting financial aid. These changes, including system modifications and staff training, will be implemented by Fall 2025.