Finding Text
FINDING 2025-007 Federal Program Information: Federal Supplemental Educational Opportunity Grants (ALN: 84.007), Federal Pell Grant Program (ALN: 84.063), Federal Direct Student Loan Program (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions – Disbursements to or on Behalf of Students – Federal regulations, 34 CFR 668.164(i)(1)(i), dictate that the earliest an institution may disburse Title IV, HEA funds to an eligible student or parent is 10 days before the first day of classes of a payment period if the student is enrolled in a credit-hour program offered in terms that are substantially equal in length that is not a subscription-based program. Condition: During our testing, we identified a student whose aid was disbursed outside of the allowable timeframe. Cause: Administrative oversight and insufficient control. Effect: The University was not in compliance with the requirements of disbursing Title IV funds. Questioned Costs: None. Context: For 1 of 25 students tested, the University disbursed Title IV funds earlier than 10 days prior to term start. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its procedures and internal controls over disbursing Title IV to ensure appropriate timing of disbursements. Views of Responsible Officials and Planned Corrective Actions: We have revised our award period start and end dates to align or fall within range of our loan period code start and end dates when reporting to COD. This alignment ensures that all reported disbursements meet federal timing requests and reduces the risk of COD rejects or compliance findings.