Finding 1284 (2023-002)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-11-06
Audit: 2416
Organization: Calvary University (MO)

AI Summary

  • Core Issue: Seven out of eighteen students did not receive required exit interview counseling for Federal Direct Loans upon graduation or dropping below halftime enrollment.
  • Impacted Requirements: Federal regulations mandate that exit counseling must be provided to all Federal Direct Loan recipients, either in-person or via written materials.
  • Recommended Follow-Up: Ensure that exit interview procedures are improved to guarantee compliance and that affected students receive the necessary information promptly.

Finding Text

Condition Found: A Federal Direct Loan exit interview was not completed by, nor were instructions sent to, students on how to complete an exit interview when the students graduated from the University or dropped below a halftime enrollment status. This omission occurred for seven of the eighteen students in our sample. Criteria: Federal Direct Loan recipients must receive exit interview counseling. If in-person counseling is not completed, the University may mail written counseling materials to a student’s last known address. Cause: Federal Direct Loan exit counseling was not provided when students withdrew from the University or dropped below a halftime enrollment status. This was an oversight on the part of the financial aid office staff. Effect The students were not aware of their responsibilities related to the Federal Direct Loan program, including repayment options and when repayment on the loan begins. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: Federal Direct Loan exit interview information should be sent to the students in question. Procedures should be improved to ensure that Federal Direct exit interviews are completed or information is sent to a student when a student ceases attendance at the University or drops below a halftime enrollment status. Management Response: Federal Direct Loan exit interview information was sent to the students in question in August 2023. Procedures will be improved to ensure Federal Direct Loan exit interviews are completed or information is sent to students when they cease enrollment at the University.

Corrective Action Plan

Corrective Action Plan: Federal Direct Loan exit interview information was sent to the students in question in August 2023. Procedures will be improved to ensure Federal Direct Loan exit interviews are completed or information is sent to students when they cease enrollment at the University. Anticipated Completion Date: The corrective action was completed in August 2023. Contact Person: Tasha Young, Staff Accountant 816-425-6151

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1283 2023-001
    Material Weakness Repeat
  • 1285 2023-001
    Material Weakness Repeat
  • 1286 2023-001
    Material Weakness Repeat
  • 1287 2023-001
    Material Weakness Repeat
  • 1288 2023-001
    Material Weakness Repeat
  • 1289 2023-001
    Material Weakness Repeat
  • 577725 2023-001
    Material Weakness Repeat
  • 577726 2023-002
    -
  • 577727 2023-001
    Material Weakness Repeat
  • 577728 2023-001
    Material Weakness Repeat
  • 577729 2023-001
    Material Weakness Repeat
  • 577730 2023-001
    Material Weakness Repeat
  • 577731 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $423,558
84.063 Federal Pell Grant Program $331,745
84.425 Education Stabilization Fund $319,404
84.007 Federal Supplemental Educational Opportunity Grants $10,703
84.033 Federal Work-Study Program $6,757