Finding Text
Criteria: An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student?s account for outstanding charges (34 CFR 668.22). Condition: One out of eleven (9.1%) students selected for testing, was disbursed a post-withdrawal disbursement without a notification being sent to authorize the loan disbursement. This was a result of the withdrawal for this student being completed late. 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. See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs: $1,577. Effect: The result of not notifying the student of a post-withdrawal disbursement is the student is unaware of the additional loan amount. Recommendation: We recommend that the College increase controls over post-withdrawal disbursements. No payment is recommended as the loan amount was returned. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.