Finding Text
Federal Program:
U.S. Department of Education - Student Financial Assistance Cluster
Federal Direct Loan Program, 84.268
Criteria: The College is required to comply with 34 CFR Section 685.301(a)(2).
Condition: During our testing of eligibility, we selected 40 samples and noted three instances where the loan disbursement date on the student's ledger did not agree to the disbursement date on Common Origination and Disbursement (COD).
Cause: The College did not have controls in place to properly review COD disbursement dates to verify all students had proper reporting to COD.
Effect: The College did not follow federal regulations regarding reporting to COD. The provisions of 34 CFR Section 685.301(a)(2) were not followed and thus three students loans were improperly reported to COD.
Questioned Costs: There are no questioned costs associated with this finding.
Recommendation: We recommend that the College review all COD disbursements and perform monthly COD reconciliations by student to verify the disbursement date and amount matches the student ledger.
View of Responsible Officials: The College concurs with the finding. Controls have already been implemented to ensure accurate and timely reporting to COD.