Finding 370161 (2023-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-02-22

Audit: 291681

Organization: Culver-Stockton College (MO)

Auditor: Wade Stables PC

AI Summary

Core Issue: Four out of 15 students did not receive timely exit counseling notifications, violating federal requirements.
Impacted Requirements: Schools must notify borrowers within 30 days of withdrawal or failure to participate in exit counseling, per 34 CFR 685.304(b).
Recommended Follow-up: Implement stronger oversight and procedures to ensure timely notifications for students who graduate or withdraw.

Finding Text

Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.’s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Special Tests and Provisions Criteria: In accordance with 34 CFR 685.304(b) and as stated in Volume 2 of the Federal Student Aid Handbook, schools are required to provide exit counseling for student borrowers in the Direct Loan programs that have graduated, leave school or drop below half-time enrollment within 30 days of learning that the borrower has withdrawn or failed to participate in an exit counseling session. Condition: During the course of our audit, we sampled 60 students that received Title IV funds and within that sample, 15 students should have received notification regarding exit counseling. We found four students were not promptly notified of the need to complete exit counseling. Cause of Condition: Exit counseling notification was not sent within the required 30 day timeframe due to an oversight. Effect: Exit counseling provides students with essential information to prepare students for loan repayment. Additionally, information is collected from the exit counseling that is given to the student’s loan servicer which affects the grace period associated with loan repayment. Questioned Costs: No questioned costs. Perspective Information: N/A Recommendation: We recommend the College employ stronger oversight in this area by implementing procedures to ensure the proper notification can be sent to students who graduate or withdraw in a timely manner of when the College has learned the student is no longer enrolled. Views of Responsible Official(s): The College implemented the following policies in the attached Corrective Action Plan effective September 2023. The responsible college officer is Tina Wiseman, Director of Financial Aid.

Corrective Action Plan

The College implemented the following policies effective September 2023. The responsible college officer is Tina Wiseman, Director of Financial Aid. • Students that graduate will automatically be sent exit counseling within 30 days of their last date of at least part-time attendance. • Students that identify to the college that they are not returning for the next term of enrollment will be sent exit counseling within 30 days of that notification. • Students that enroll for the next term, but then drop their enrollment before the start of the next term, will have exit counseling sent within 30 days of the drop date. If that date falls more than 30 days outside of their last date of at least part-time attendance, the financial aid office will document their file of that notification. • Students that do not enroll for the next term but have identified to the college they plan to enroll (example, they have a balance due they need to pay, are waiting to hear on placement within a program, waiting on class schedule confirmation, etc.), will receive exit counseling within 30 days of census date of the next term. If a student identifies at any time before census they are not returning, exit counseling will be sent within 30 days of learning they are not returning. • Students that do not enroll for the next term and have not had any communication with the college on their plans to enroll will receive exit counseling within 30 days of census date of the next term.

Other Findings in this Audit

370156 2023-002

Significant Deficiency
370157 2023-002

Significant Deficiency
370158 2023-002

Significant Deficiency
370159 2023-002

Significant Deficiency
370160 2023-002

Significant Deficiency
946598 2023-002

Significant Deficiency
946599 2023-002

Significant Deficiency
946600 2023-002

Significant Deficiency
946601 2023-002

Significant Deficiency
946602 2023-002

Significant Deficiency
946603 2023-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.268	Federal Direct Student Loans	$7.20M
84.063	Federal Pell Grant Program	$1.67M
84.007	Federal Supplemental Educational Opportunity Grants	$91,746
84.379	Teacher Education Assistance for College and Higher Education Grants (teach Grants)	$79,948
84.033	Federal Work-Study Program	$62,729
84.126	Rehabilitation Services_vocational Rehabilitation Grants to States	$24,904