FAC Explorer

Finding 1228 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-11-05
Audit: 2293
Organization: Husson University (ME)
Auditor: Berry Dunn McNeil & Parker LLC

AI Summary

  • Core Issue: Four students did not receive timely written notification of their right to cancel Federal Direct Student Loans.
  • Impacted Requirements: Notification must occur within 30 days as per 34 CFR 668.165.
  • Recommended Follow-Up: Manually verify the student account correspondence log after email notifications to ensure compliance.

Finding Text

Finding 2023-001 Programs Affected Under the Student Financial Assistance Cluster – Award Year July 1, 2022 – June 30, 2023: AL 84.268 – U.S. Department of Education – Federal Direct Student Loans Criteria Per 34 Code of Federal Regulations (CFR) 668.165, the institution must notify the student in writing of the student’s right to cancel all or a portion of a loan and to have the loan proceeds returned to the holder, no later than 30 days after crediting the student’s account with the Federal Direct Student Loan. Condition Based on a nonstatistical sample of 25 selections from the Federal Direct Student Loan population, four of the selections did not receive a written notification of the right to cancel within the required timeframe. Cause The notification process is automated and there was a system error during a mass electronic email distribution notification. Questioned Costs None. Effect A population of students did not get notified of their right to cancel direct loans within 30 days. Identification as a Repeat Finding, if Applicable Not applicable. Recommendation BerryDunn recommends the reviewer manually check the student account correspondence log within the system following the email notifications to determine accuracy and completeness. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding. See attached Corrective Action Plan.

Corrective Action Plan

Finding 2023-001 The University found the disbursement notifications that were scheduled to be made during a 45 day period, using our automated process, failed to transmit and therefore some borrowers did not receive the required notifications for Direct Loan funds. Response The University subsequently notified these students or parents following the identification of the error on November 16, 2022. As a result of the error in the automated process, a population of borrowers did not receive timely written notice of their right to cancel their Direct Loans until after the 30 day notification requirement ended. Corrective Action The disbursement notification process is run manually after each disbursement file is transmitted to the Student Accounts Office. Staff continue to work with the IT department to work towards making this an automated process. Status Corrected, November 16, 2022 Responsible Official Anne Tabor, Executive Director of Financial Aid

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1223 2023-002
    Significant Deficiency
  • 1224 2023-002
    Significant Deficiency
  • 1225 2023-002
    Significant Deficiency
  • 1226 2023-002
    Significant Deficiency
  • 1227 2023-002
    Significant Deficiency
  • 577665 2023-002
    Significant Deficiency
  • 577666 2023-002
    Significant Deficiency
  • 577667 2023-002
    Significant Deficiency
  • 577668 2023-002
    Significant Deficiency
  • 577669 2023-002
    Significant Deficiency
  • 577670 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $23.91M
84.063 Federal Pell Grant Program $4.28M
84.007 Federal Supplemental Educational Opportunity Grants $373,116
84.033 Federal Work-Study Program $282,903
93.264 Nurse Faculty Loan Program (nflp) $19,135