Finding 50628 (2022-003)

-
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-06-23

AI Summary

  • Core Issue: The institution failed to disburse Federal Pell Grant funds within the required three business days after receiving them.
  • Impacted Requirements: This noncompliance violates 34 C.F.R. §668.162 regarding timely fund disbursement.
  • Recommended Follow-up: Investigate the cause of the delay and implement measures to ensure compliance with disbursement timelines.

Finding Text

Finding 2022-003 Disbursing Funds for the Title IV Programs - Noncompliance Criteria: In accordance with 34 C.F.R. ?668.162 Requesting Funds, under the advanced payment method, an institution must disburse the funds requested as soon as administratively feasible but not later than three business days following the date the institution receives those funds. Statement of Condition: The disbursement of a Federal Pell Grant was made later than three business days after the institution received funds based on the G5 drawn down date. Cause: Unknown. Effect: In two (2) of 215 disbursements to students, the institution did not disburse a Federal Pell Grant within three business days following the date the institution received the funds. Description of nature and extent of the issues reported: The institution did not disburse Federal Pell Grant disbursements to the students within three business days after the institution received funds.

Corrective Action Plan

2022-003 - Audit Finding Title: Non-compliance Specific steps to be taken to correct the situation (including a timetable for performance of the CAP) or reason why corrective action is not necessary (including disagreement with the finding): NTMA has recently adopted a new student financial management system that will assist in determining correct calculated awards and is a State of the art financial aid packing system. We are retiring Transcripts, a very antiquated system that was not set up to provide the error free outcomes required. Jenzabar Financial Aid, our new SMS, enacts group processing and direct data imports from the DoE, manages funds to and from the COD system. Flexibility to award using federal and institutional methodologies, automates COA calculations etc.. Jenzabar is a Financial Aid System built by financial aid people. It was set up in manner that is meant to be more compliant and more robust streamline process. It has automated the entire financial aid process. In addition, we are also considering the use of a servicer and requiring financial aid staff to take an additional continuing education and they will be attending virtual workshops that the DoE offers each year.

Categories

Student Financial Aid

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $809,879
84.063 Federal Pell Grant Program $594,264