Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
Assistance Listing Number: 84.038, 84.268, 84.033, 84.007, 84.063
Award Period: June 1, 2022 to May 31, 2023
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Other matter
Criteria or Specific Requirement: The Department of Education requires the College to report the disbursement dates and amounts to the Common Origination and Disbursement (COD) system within 15 days of disbursing Pell (34 CFR 690.83(b)(2) and Direct Loan (34 CFR 685.309) funds to a student.
Condition: During our testing, we noted 10 of the 40 students tested had an applied date outside of the 15 day requirement to be applied to the student account.
Questioned Costs: None reported
Context: During our testing, it was noted the College had a password issue that resulted in delayed reporting.
Cause: The College was unable to meet the requirement that disbursements made to students must be reported to COD within 15 days of the disbursement date due to a password issue.
Effect: Students interest accrues based on disbursement date reported to COD for Direct Loan disbursements, thus interest calculation could be skewed due to the discrepancy in disbursement dates reported.
Repeat Finding: No
Recommendation: We recommend the College evaluate the circumstances that delayed reporting disbursements to COD to ensure that it will not happen again.
Views of Responsible Officials: There is no disagreement with the audit finding.