Finding Text
2023-001 Incorrect COD Disbursement Date Reporting
Federal Program: Student Financial Assistance Cluster, ALN 84.007, 84.003, 84.063, 84.268, Department of Education
Criteria: Institutions submit origination records and disbursement records to the Common Origination and Disbursement (COD) system. Origination records can be sent in advance of any disbursements, and an institution follows up with a disbursement record that reports the actual disbursement date.
Condition: During our testing of information reported to the Common Origination and Disbursement (COD) system, we noted that the disbursement dates in COD did not match the disbursement dates in the College’s accounting records because the dates reported to COD were the disbursement dates per the financial aid system, which were 5-7 days before the money was credited to students’ accounts.
Cause: There is a delay between applying aid to student accounts in PowerFaids and Banner. Management reports to COD using PowerFaids dates.
Effect: Incorrect disbursement dates were reported to COD.
Questioned Costs: None
Context: We tested 25 students and noted that, for all selected students, the disbursement date in COD did not match the disbursement date in the College's records because the dates reported to COD were the PowerFaids dates, which were 5-7 days before the money was credited to students' accounts. This issue is only related to the reporting of accurate dates; the disbursement amounts were accurately reported in each selection tested.
Repeat Finding: No
Recommendation: The College should use Banner student account statements as the source of disbursement dates.
Views of Responsible Officials and Planned Corrective Actions: The College uses two different systems to process financial aid. The disbursement date that was submitted to COD matches the disbursement date in Powerfaids, the student information system used to communicate to COD and process financial aid. Then, that aid is subsequently posted to the student’s account in Banner, and any credit balance created from there. Starting with the 2023-24 award year, the College will only be using the Banner student information system to process financial aid, so any disbursement information will be communicated directly from Banner to COD.