Finding Text
Finding Number: 2025-001 Repeat Finding: No Major Programs: 84.268 Federal Direct Student Loans Program Federal Agency: Department of Education Award Year: July 1, 2024 to June 30, 2025 Compliance Requirement: Financial reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Description: Common Origination and Disbursement (COD) System Reporting Questioned Costs: None Criteria: The College should maintain procedures to verify the disbursement dates in the recorded in the COD System agree to the date funds are credited to a student’s account in the institution’s general ledger. Condition and Context: During testing of COD reporting it was noted all disbursements made on January 29, 2025 were reported to the COD system with a disbursement date of January 30, 2025. Effect: Students interest accrues based on the disbursement date reported to COD for Direct Loan disbursements, thus interest calculation for loans could be skewed due to the discrepancy in disbursement dates reported. Possible Cause: The College did not update the disbursement date from the expected disbursement date in the COD system. It appears to be a miscommunication matter. Recommendation: We recommend the College implement procedures to properly communicate the actual disbursement date to individuals responsible with updating the COD System. View of Responsible Officials: The College agrees with the finding.