Finding 1173953 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-17
Audit: 387552
Organization: Bates College (ME)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: Three out of forty disbursements were reported late to the COD system, impacting compliance with reporting timelines.
  • Impacted Requirements: Institutions must report disbursement data within 15 calendar days to ensure accurate student enrollment status and eligibility.
  • Recommended Follow-Up: Implement a tracking system to remind staff of COD reporting deadlines, especially for off-cycle or break period disbursements.

Finding Text

Finding 2025-001 - Reporting: Financial Reporting - Student Financial Assistance Cluster, ALN 84.268 and 84.063, June 30, 2025 Award Year, U.S. Department of Education Criteria or Specific Requirement Institutions submit Direct Loan, Pell Grant, and TEACH Grant origination records to the Common Origination and Disbursement (“COD”) system. The disbursement record reports the actual disbursement date and the amount of the disbursement. Institutions must report student disbursement data within 15 calendar days after the institution makes the disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. (November 2025 OMB Compliance Supplement page 5-3-24) Condition Three out of forty disbursements tested were reported late to COD, one was 3 days late and two were 23 days late. This was not a statistically valid sample. Cause The College was closed when one disbursement was made, and two disbursements were off-cycle disbursements which resulted in delays in reporting the disbursements to COD. Effect A student’s enrollment status determines eligibility for in-school status, deferment, grace periods, and repayments, as well as the government’s payment of interest subsidies. The notification of student status changes to NSLDS will cause a student to enter into a grace period and determine a repayment date and, therefore, accurate and timely notification of student status to NSLDS is important. Questioned Costs None Identification as a Repeat Finding Not a repeat finding. Recommendation Management should implement a process or tracking mechanism to create reminders of COD reporting due dates when disbursements are made, particularly for off-cycle disbursements or disbursements during school breaks. Views of Responsible Officials and Corrective Actions See Corrective Action Plan.

Corrective Action Plan

Finding 2025-001 - Reporting: Financial Reporting - Student Financial Assistance Cluster, ALN 84.268 and 84.063, June 30, 2025 Award Year, U.S. Department of Education Condition Institutions submit Direct Loan, Pell Grant, and TEACH Grant origination records to the Common Origination and Disbursement (“COD”) system. The disbursement record reports the actual disbursement date and the amount of the disbursement. Institutions must report student disbursement data within 15 calendar days after the institution makes the disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. (November 2025 OMB Compliance Supplement page 5- 3-24) Three out of forty disbursements tested were reported late to COD, one was 3 days late and two were 23 days late. Corrective Actions To address the finding, procedures have been revised to specifically address COD reporting during school closures, emergency situations, and off-cycle disbursements. As part of this effort, key dates have been noted on a shared calendar for staff to reference to ensure timely reporting under various circumstances. To maintain compliance going forward, staff will perform weekly reviews of all disbursements to ensure timely COD reporting, and monthly audits of COD reporting will be conducted to identify late submissions and address issues promptly. Responsible Official: Wendy G. Glass, Director of Student Financial Services Completion Date: December 4, 2025

Categories

Student Financial Aid

Other Findings in this Audit

  • 1173952 2025-001
    Material Weakness Repeat
  • 1173954 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $4.07M
84.063 FEDERAL PELL GRANT PROGRAM $1.54M
84.038 FEDERAL PERKINS LOAN PROGRAM $440,791
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $279,922
84.033 FEDERAL WORK-STUDY PROGRAM $218,141
93.867 VISION RESEARCH $182,876
47.083 OFFICE OF INTEGRATIVE ACTIVITIES $146,621
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $140,654
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $123,938
47.050 GEOSCIENCES $109,084
45.312 NATIONAL LEADERSHIP GRANTS $46,358
20.205 HIGHWAY PLANNING AND CONSTRUCTION EFFICIENCY MAINE $40,000
93.855 ALLERGY AND INFECTIOUS DISEASES RESEARCH $36,116
45.024 PROMOTION OF THE ARTS PARTNERSHIP AGREEMENTS $35,000
45.160 PROMOTION OF THE HUMANITIES_FELLOWSHIPS AND STIPENDS $33,730
43.001 SCIENCE $26,200
84.305 EDUCATION RESEARCH, DEVELOPMENT AND DISSEMINATION MDRC $19,329
81.049 OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM $11,495
45.025 PROMOTION OF THE ARTS PARTNERSHIP AGREEMENTS SUPPORT FOR BATES DANCE FESTIVAL $10,000
11.417 SEA GRANT SUPPORT $2,643