FAC Explorer

Finding 388295 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 300086
Organization: Georgetown College (KY)
Auditor: Dean Dorton Allen Ford PLLC

AI Summary

  • Core Issue: Five TEACH Grant recipients were not informed of their right to cancel their grant.
  • Impacted Requirements: The College failed to comply with 36 CFR Section 686.31(e)(1)(i).
  • Recommended Follow-Up: Update student notifications to include information on the right to cancel the TEACH Grant.

Finding Text

Federal Program: U.S. Department of Education: TEACH Grant Criteria: The University must comply with 36 CFR Section 686.31(e)(1)(i). Condition: During our testing of eligibility, we noted five TEACH Grant recipients of five sampled were not notified of their right to cancel their TEACH Grant. Cause: The College did not have procedures in place to properly notify students of their right to cancel all or a portion of their TEACH grant. Effect: The provisions of 36 CFR Section 686.31(e)(1)(i) was not followed and thus five students were not notified on their right to cancel all or a portion of their TEACH Grant. Recommendation: We recommend the College update their notification to students to including wording about the students right to cancel their TEACH Grant. View of Responsible Officials:

Corrective Action Plan

A. Comments on the Finding and Recommendations: The College concurs with the finding of not providing the Right to Cancel notification to 5 students in the sample. Auditor Recommendation: We recommend the College update their notification to students to include wording about students right to cancel their TEACH Grant. B. Actions Taken or Planned: The College will follow the auditor's recommendation to update the notification to students and notes that this as an isolated incident. The College will review and update their disbursement notification process for the TEACH Grant. The update will be aligned with the disbursement notification procedures used for the Direct Loan program. Additionally, the third-party servicer will perform internal control reviews during each pay period to verify accurate and timely dissemination of disbursement notifications for TEACH Grant.

Categories

Eligibility Special Tests & Provisions

Other Findings in this Audit

  • 388294 2023-001
    -
  • 388296 2023-003
    Significant Deficiency
  • 388297 2023-003
    Significant Deficiency
  • 964736 2023-001
    -
  • 964737 2023-002
    Significant Deficiency
  • 964738 2023-003
    Significant Deficiency
  • 964739 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.91M
84.063 Federal Pell Grant Program $2.07M
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $307,910
84.038 Federal Perkins Loan Program $303,861
84.425 Education Stabilization Fund $233,207
84.007 Federal Supplemental Educational Opportunity Grants $136,800
84.033 Federal Work-Study Program $123,505