Finding Text
2022-003 Student Financial Assistance Program Cluster ? Department of Education Federal Financial Assistance Listing/CFDA #84.268 Federal Direct Student Loans - 2020/2021 P268K211430 Federal Financial Assistance Listing/CFDA #84.063 Federal Pell Grant Program - 2020/2021 P063P201430 Reporting? Common Origination and Disbursement System Material Weakness in Internal Control over Compliance and Noncompliance Criteria: An institution must submit Pell Grant, Iraq and Afghanistan Service Grant, Direct Loan, and TEACH Grant disbursement records to COD, no later than 15 days after making the disbursement or becoming aware of the need to adjust a previously reported disbursement. In accordance with 34 CFR 668.164(a), Title IV, HEA program funds are disbursed on the date that the institution: (a) credits those funds to a student?s account in the institution?s general ledger or any subledger of the general ledger; or (b) pays those funds to a student directly. Title IV, HEA program funds are disbursed even if an institution uses its own funds in advance of receiving program funds from the Department. Condition: Three instances were noted where Title IV funds were applied to the student account but were not processed in COD within the required timeframe. Another two instances were noted where Title IV funds were applied to the student account but were not processed in COD at all. Cause: There was no process in place to monitor and correct denials from the COD system in a timely manner. Effect: COD data was not reflective of the date the aid was applied to the student account. Questioned Costs: None Context/Sampling: Non-statistical sampling was performed. Five instances were identified in 60 students tested. 290 students received Pell disbursements and 669 students received direct loan disbursements. Repeat Finding from Prior Years: Yes Recommendation: The University should implement controls to ensure loans applied to student accounts are processed in COD within required time frame and monitor and address denials in a timely manner. Views of Responsible Officials: Management agrees. Management?s complete response can be found in the separately issued corrective action plan.