FAC Explorer

Finding 1186889 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-26
Audit: 394660
Organization: Bluefield University (VA)
Auditor: BROWN EDWARDS AND COMPANY LLP

AI Summary

  • Core Issue: The University failed to send disbursement notices to students on time, violating federal requirements.
  • Impacted Requirements: Notifications regarding Title IV funds and cancellation rights were not consistently provided as mandated by 34 CFR Section 685.165.
  • Recommended Follow-Up: Implement procedures to ensure timely distribution of disbursement notices to all students.

Finding Text

Condition: The University did not consistently distribute disbursement notices to students within the minimum required timeframe. Criteria: Based on requirements set forth by 34 CFR Section 685.165(a)(1-2), the University is responsible for notifying a student of the amount of expected Title IV funds as well as how and when those funds will be disbursed. Additionally, the University must notify the students of their right to cancel all or a portion of that loan disbursement as well as the timeline they must follow to do so. Cause: We noted that the University did not consistently send the required notices to students. Effect: Disbursement notices, including the right to cancel information, were not consistently sent to students. Context: From a population of 976, we tested 29 students and noted that all those students were not sent disbursement notices timely. Repeat Finding: Not a repeat finding. Recommendation: We recommend the University implement procedures to ensure that disbursement notices are consistently sent to students.

Corrective Action Plan

Bluefield University does include required disbursement information, including the right to cancel Title IV funds, in financial aid award letters, Master Promissory Notes, and entrance counseling. However, effective January 1, 2026, the University implemented a policy in the financial aid office requiring use of the PowerFAIDS system-generated disbursement notice at the time of each type of disbursement: direct loan, plus loan, and alternative loan. This auto-generated notice is an email to the student clearly noting the student’s right to cancel all or a portion of that specific loan disbursement, referencing the timeline and process by which a student may exercise this cancellation right.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1186882 2025-002
    Material Weakness Repeat
  • 1186883 2025-003
    Material Weakness Repeat
  • 1186884 2025-002
    Material Weakness Repeat
  • 1186885 2025-003
    Material Weakness Repeat
  • 1186886 2025-002
    Material Weakness Repeat
  • 1186887 2025-003
    Material Weakness Repeat
  • 1186888 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $16.05M
84.063 FEDERAL PELL GRANT PROGRAM $2.63M
84.033 FEDERAL WORK-STUDY PROGRAM $123,825
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $68,209