Finding 366763 (2023-004)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-09
Audit: 289758
Organization: Shawnee State University (OH)

AI Summary

  • Core Issue: The University failed to notify students or parents within the required 30-day period after crediting Federal Direct Loans to accounts.
  • Impacted Requirements: Notifications must include the loan amount, date, cancellation rights, and procedures as per 34 CFR Section 68.165.
  • Recommended Follow-Up: Implement a reliable process to ensure timely notifications are sent for all Federal Direct Loan credits.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.268; Department of Education; Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a student account is credited with Federal Direct Loans (FDL), the institution must notify the student or parent of date and amount as well as the right to cancel all or portion of loan, and the procedure and time by which the student must notify the institution no earlier than 30 days before and no later than 30 days after crediting student’s account if using an affirmative confirmation process (34 CFR Section 68.165). Condition - The University did not timely notify the student or parent within 30 days of crediting the student's account with Federal Direct Loans. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 21 students tested for FDL notification, notifications for 16 students were not timely communicated within the required time frame. Cause and Effect - The University did not have a process in place to ensure notifications were sent out in the required time frame. Recommendation - We recommend that the University institute a process to ensure that all notifications are sent within the required time frame. Views of Responsible Officials and Planned Corrective Actions - When posting direct loans to the student's account, we will add a touchpoint to the student's record. This automatically sends an email to the student. We will mail a notification to the parent in the case of a Parent Plus loan.

Corrective Action Plan

Condition: The University did not timely notify student or parent within 30 days of crediting the student’s account with FDL. Planned Corrective Action: When posting direct loans to the student’s account, we add a touchpoint to the student’s record. This automatically sends an email to the student. We will mail a notification to the parent in the case of a Parent PLUS loan. Contact person responsible for corrective action: Nicole Neal Anticipated Completion Date: 11/01/2023

Categories

Student Financial Aid Material Weakness Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 366759 2023-002
    Material Weakness Repeat
  • 366760 2023-002
    Material Weakness Repeat
  • 366761 2023-003
    Material Weakness Repeat
  • 366762 2023-003
    Material Weakness Repeat
  • 943201 2023-002
    Material Weakness Repeat
  • 943202 2023-002
    Material Weakness Repeat
  • 943203 2023-003
    Material Weakness Repeat
  • 943204 2023-003
    Material Weakness Repeat
  • 943205 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.87M
84.063 Federal Pell Grant Program $5.80M
11.307 Economic Adjustment Assistance $1.00M
84.027 Special Education_grants to States $617,533
94.006 Americorps $467,197
84.066 Trio_educational Opportunity Centers $433,818
84.287 Twenty-First Century Community Learning Centers $342,723
84.047 Trio_upward Bound $251,548
84.425 Covid-19 - Education Stabilization Fund $226,323
93.732 Mental and Behavioral Health Education and Training Grants $182,024
84.033 Federal Work-Study Program $174,714
93.575 Child Care and Development Block Grant $164,400
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $126,216
17.268 H-1b Job Training Grants $117,682
84.007 Federal Supplemental Educational Opportunity Grants $103,325
84.371 Striving Readers $95,943
11.024 Build to Scale $60,968
10.558 Child and Adult Care Food Program $23,982
94.013 Volunteers in Service to America $23,262
45.129 Promotion of the Humanities_federal/state Partnership $16,389
43.012 Space Technology $11,094
23.001 Appalachian Regional Development (see Individual Appalachian Programs) $8,749
45.025 Promotion of the Arts_partnership Agreements $4,000