Finding 384694 (2023-007)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-26
Audit: 297799
Organization: Columbia College (MO)
Auditor: Brown Edwards

AI Summary

  • Core Issue: The College failed to provide required exit counseling for eight out of nine students who withdrew, violating federal regulations.
  • Impacted Requirements: Institutions must ensure exit counseling is conducted for Federal Direct Loan borrowers before they stop attending, and follow up within 30 days if they fail to complete it.
  • Recommended Follow-Up: Implement procedures to notify students of exit counseling requirements and retain evidence of completion to avoid penalties and reduce default rates.

Finding Text

2023-007 Exit Counseling (Significant Deficiency) Department of Education, SFA Cluster Criteria: Federal regulations stipulate that an institution must ensure that exit counseling is conducted with each Federal Direct Loan borrower shortly before the student borrower ceases at least half-time study at the school. If a student borrower withdraws from the school without prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower’s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. Condition: During our testing, we noted eight instances, in a sample of nine students requiring exit counseling, in which evidence of exit counseling and notification of exit counseling could not be provided by the College. Cause: Administrative oversight. Effect: Not providing the necessary information or performing exit counseling may result in penalties or sanctions from the Department of Education in addition to higher default rates. Repeat Finding from a Prior Year: Yes. Recommendation: We recommend the College implement procedures to ensure that borrowers who cease enrollment be notified of the need to complete exit counseling. Evidence of this counseling should be retained by the College. Management Response: We concur with this finding. Currently, students receive a withdrawal notification that provides them with a link to complete their exit counseling. Moving forward and during the completion of the withdrawal, the students will be presented with an exit counseling digital page. On this page, withdrawal information will be provided to the student along with the deadline to complete the exit counseling. Students will also certify that they have received and understood the information. Once the withdrawal form is completed, students will get a follow up email that will also direct them to the exit counseling at www.studentaid.gov and inform them of the 30-day deadline.

Corrective Action Plan

2023-007 Exit Counseling (Significant Deficiency) Criteria: Federal regulations stipulate that an institution must ensure that exit counseling is conducted with each Federal Direct Loan borrower shortly before the student borrower ceases at least half-time study at the school. If a student borrower withdraws from the school without prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower’s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. Condition: During our testing, we noted eight instances, in a sample of nine students requiring exit counseling, in which evidence of exit counseling and notification of exit counseling could not be provided by the College. Action Taken: We concur with this finding. Currently, students receive a withdrawal notification that provides them with a link to complete their exit counseling. Moving forward and during the completion of the withdrawal, the students will be presented with an exit counseling digital page. On this page, withdrawal information will be provided to the student along with the deadline to complete the exit counseling. Students will also certify that they have received and understood the information. Once the withdrawal form is completed, students will get a follow up email that will also direct them to the exit counseling at www.studentaid.gov and inform them of the 30-day deadline. Responsible Party: Lola Kennedy, Senior Director of Financial Aid and Sharon Murphy, Registrar Point of Contact: Lola Kennedy, Senior Director of Financial Aid (lkennedy@columbiasc.edu) and Sharon Murphy, Registrar (smurphy@columbiasc.edu) Expected date of correction: April 1, 2024

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Significant Deficiency

Other Findings in this Audit

  • 384688 2023-001
    Material Weakness
  • 384689 2023-002
    Significant Deficiency
  • 384690 2023-003
    Significant Deficiency
  • 384691 2023-004
    Significant Deficiency
  • 384692 2023-005
    Significant Deficiency
  • 384693 2023-006
    Significant Deficiency
  • 961130 2023-001
    Material Weakness
  • 961131 2023-002
    Significant Deficiency
  • 961132 2023-003
    Significant Deficiency
  • 961133 2023-004
    Significant Deficiency
  • 961134 2023-005
    Significant Deficiency
  • 961135 2023-006
    Significant Deficiency
  • 961136 2023-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.53M
84.063 Federal Pell Grant Program $3.17M
84.425 Education Stabilization Fund $1.34M
84.027 Special Education_grants to States $990,101
84.007 Federal Supplemental Educational Opportunity Grants $182,075
84.336 Teacher Quality Partnership Grants $173,922
84.033 Federal Work-Study Program $83,632
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $28,290
93.859 Biomedical Research and Research Training $1,538