Finding Text
Disbursements to Ineligible Students Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.063, and 84.268
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: The College disbursed various federal financial assistance an ineligible student and to students who did not begin attendance in all the classes in the term for which the Title IV aid was disbursed. The College is to return Title IV aid within 30 days when the student fails to begin attendance.
Criteria: 34 CFR 668.21
Questioned Costs: $9,276
Context: Out of 15 withdrawal students tested for proper aid disbursement, there were 9 for whom the College did not timely adjust the student’s aid based on their attendance records. This resulted in $12,661 of Pell and $13,857 of Federal Direct Loans (FDL) returned late to the Department of Education ranging from 54 to 264 days. As of the of the end of the audit, $9,571 of Pell and $7,671 FDL were returned to the Department of Education.
Cause: There was a lack of communication between the Registrar and the Financial Aid Office when the students did not begin attendance. Professors did not provide confirmation of attendance timely to the Registrar.
Effect: Students where disbursed aid for which they were ineligible.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend the College develop a process for communicating attendance changes in a timely manner between offices.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.