Finding Text
Criteria: Each student that receives Federal Direct Loans is required to have entrance counseling before release of the first disbursement and exit counseling when they withdraw, graduate, or drop (34 CFR 685.304).
Condition: Three of forty (7.5%) students did not complete exit counseling. This was a result of the Financial Aid Director not being notified that the students were not returning for the Fall 2023 semester. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used in making sample selections.
Questioned Costs: N/A
Effect: The result of not conducting exit counseling is students may be uninformed about the responsibilities and consequences of borrowing funds.
Recommendation: We recommend the College implement procedures to ensure exit counseling is completed and the documentation maintained for loans disbursed.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.