Finding 390306 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-29

AI Summary

  • Core Issue: One student did not receive an award letter before their first financial aid disbursement.
  • Impacted Requirements: The University failed to notify students of expected Title IV funds as required by federal regulations.
  • Recommended Follow-Up: Enhance internal controls to ensure all award notifications are sent before disbursing Title IV aid.

Finding Text

Federal Program: Student Financial Assistance Cluster Assistance Listing Number: 84.268 Federal Direct Student Loans Program Federal Agency: Department of Education Award Year: July 1, 2022 – June 30, 2023 Criteria: Per 34 CFR Section 668.165, before an institution disburses title IV, HEA program funds for any award year, the institution must notify a student of the amount of funds that the student or his or her parent can expect to receive under each title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans. Condition and Context: During our testwork over 40 students that received title IV funds, HEA program funds during the period, we identified one student who did not receive an award letter prior to their first aid disbursement. Cause and Effect: The University did not have a control in place to confirm the disbursement was sent prior to the award letter. As such, the disbursement was sent to the student prior to the award notification. Questioned Costs: None noted. Whether the sampling was a statistically valid sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend that the University enhance its internal controls to confirm all award notifications have been sent prior to disbursements of Title IV aid. View of Responsible Officials: University of Massachusetts Global concurs with this finding. To address this, a new control has been added beginning with the 2023-2024 fiscal year. The new step added is for a systems specialist to confirm that the batch process for award notifications has been completed, and that the notifications have been sent to students prior to disbursements of Title IV aid.

Corrective Action Plan

University of Massachusetts Global concurs with this finding. To address this, a new control has been added beginning with the 2023-2024 fiscal year. The new step added is for a systems specialist to confirm that the batch process for award notifications has been completed, and that the notifications have been sent to students prior to disbursements of Title IV aid.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 390307 2023-002
    Significant Deficiency Repeat
  • 966748 2023-001
    Significant Deficiency
  • 966749 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $77.74M
84.063 Federal Pell Grant Program $5.78M
84.365 English Language Acquisition State Grants $472,470
84.007 Federal Supplemental Educational Opportunity Grants $451,932
84.116 Fund for the Improvement of Postsecondary Education $153,696
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $81,040