Finding Text
Criteria: Per 34 CFR 685.301 (Federal Direct Loan Program), 34 CFR 690.83 (Federal Pell Grant Program), and the Federal Student Aid Handbook, institutions are required to report disbursement information to the COD system accurately and within the timeframes specified by the U.S. Department of Education. Timely and accurate reporting is necessary to ensure compliance with federal regulations and proper administration of Title IV funds. Condition: During our testing of the Student Financial Aid Cluster, we noted that the institution did not consistently submit student disbursement records to the COD system in a timely and accurate manner for both the Federal Direct Loan and Federal Pell Grant programs. Specifically, 6 out of 40 disbursement records tested were either submitted after the required deadline or contained errors that were not corrected promptly. Population and Sample Size: Number Dollars Questioned Cost Population 1320 $ N/A $ N/A Sample 40 N/A N/A Not in compliance 6 N/A N/A Effect: As a result, the institution is not in compliance with federal requirements for reporting to the COD system for both the Federal Direct Loan and Federal Pell Grant programs. This could result in delayed or improper disbursement of Title IV funds, potential loss of funding, or other administrative sanctions. Cause: The District updated the financial aid records in the internal student system but did not update the dates in COD in a timely manner. Recommendation: We recommend that the District strengthen reconciliation procedures to ensure that all loan changes entered in the internal system are promptly updated in COD and periodically verify that key data elements match.