Finding 383801 (2023-001)

Finding No. 2023-001 – E-Sign Act Award Information Cluster: Student Financial Assistance Grantor: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work-Study, Federal Pell Grant, Federal Direct Loan Award Year: FY2023 Assistance Listing Number: 84.007, 84.033, 84.063, 84.268 Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted that the University did not receive a student's consent to participate in electronic transactions for any of our selections. Cause The University does not have a process in place that prompts students to voluntarily consent to participate in electronic transactions before the federal funds are disbursed to them. Effect A lack of student consent to participate in electronic transactions may result in the transactions being denied legal effect, validity, or enforceability solely because it is in electronic form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the University establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to them receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report after the summary of status of prior audit findings.