Finding Text
2025-009 — Disbursements to or on Behalf of Students (Special Test #3) – Material Weakness in Internal Control Over Compliance and Noncompliance (Repeat of Finding 2024-008) Federal program information: Funding agencies: U.S. Department of Education Titles: SFA Cluster ALN Number: 84.063 and 84.007 Award years: 2025 Criteria: Per 34 CFR 668.165(a), institutions are required to notify students of each Title IV fund disbursement. The notification must include the amount and type of aid credited, and, for certain types of aid, information regarding their right to cancel all or a portion of a loan or other disbursement. Institutions must retain documentation evidence that such notifications were provided. Condition: The College was unable to provide documentation demonstrating that students were notified of Pell Grant disbursements for the Fall 2024 and Spring 2025 semesters. Cause: The College does not have adequate procedures to ensure that notifications of Title IV disbursements are documented and retained in accordance with federal requirements. Effect: The College cannot demonstrate compliance with the federal requirement to notify students of Pell Grant disbursements. This increases the risk that students were not properly informed of their aid and that the College may not be able to respond to federal audits or program reviews. Questioned Costs: None. Context: During our testwork we selected a random sample of students that were disbursed funds, the College was unable to provide notification that included all the required elements for all of the sample items. Recommendation: The College should establish procedures to ensure that documentation of Title IV disbursement notifications is consistently created and retained. Relevant staff should be trained in notification and record retention requirements, and management should periodically review notification processes to ensure ongoing compliance. Management’s Response: The College concurs with this finding. Management will implement procedures to notify students of Pell Grant disbursements. College will provide training to relevant staff on notification and record retention requirements. Management will periodically review processes to ensure ongoing compliance.