Finding Text
2022 ? 006: Student Notification of Disbursement Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number:84.268, 84.379 Federal Award Identification Number and Year: P268K222439-2022, P379T222439-2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The institution must notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student?s right, or parent?s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and (3)the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement. The notification requirement for loan funds applies only if the funds are disbursed by EFT payment or master check (34 CFR 668.165). Condition: The University did not send required notifications of disbursements to students who received Direct Subsidized Loans and Direct Unsubsidized Loans in accordance with the stated criteria. Questioned costs: There are no questioned costs. Context: We noted thirty (30) out of forty (40) students selected for testing where the individual students did not receive the required notifications in accordance with the stated criteria. Cause: The University?s internal controls failed to detect that the notifications had not been sent to the students. Effect: The University failed to comply with the stated criteria. Repeat Finding: No Recommendation: We recommend that the University review its policies and procedures and make updates to them to mitigate the risk that the notifications will not be sent in accordance with the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.