Finding 528775 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-19
Audit: 346833
Organization: Stephens College (MO)

AI Summary

  • Core Issue: The Financial Aid Office is not consistently reporting disbursement dates to the COD system, leading to inaccuracies.
  • Impacted Requirements: This violates 34 CFR 668.164(a), which mandates accurate reporting of Title IV fund disbursements.
  • Recommended Follow-Up: Implement clear COD reporting procedures to ensure accurate disbursement date reporting for Title IV funds.

Finding Text

Finding 2024-002: Inaccurate Reporting of Disbursement Dates to the COD System – SFA Cluster (significant deficiency) Statement of Condition: The Financial Aid Office does not consistently report disbursement dates to COD correctly. Criteria: According to 34 CFR 668.164(a), Disbursing Funds, an institution makes a disbursement of Title IV, HEA funds on the date that the institution credits a student’s account at the institution or pays a student or parent directly with funds received from the Secretary; or institutional funds used in advance of receiving Title IV, HEA funds. Cause of Condition: The College did not consistently follow their policy over COD reporting to ensure the date awards are disbursed to students agrees to the date the disbursement is reported in the COD system. Effect of Condition: The College’s inadequate reporting caused two (2) out of six (6) students tested to be incorrectly reported to COD. Recommendation: We recommend the College establish and follow COD reporting procedures to ensure that the institution accurately reports to COD the date that the institution disburses Title IV funds to each student’s ledger account. Management’s Response: Management agrees and will submit a Corrective Action Plan to address these issues.

Corrective Action Plan

AUDIT FINDINGS Finding Reference Number: Finding 2024-002 Description of Finding: Statement of Condition: The Financial Aid Office does not consistently report disbursement dates to COD correctly. Two (2) out of six (6) students tested had been incorrectly reported to COD. Statement of Concurrence or Nonconcurrence: According to 34 CFR 668.164(a), Disbursing Funds, an institution makes a disbursement of Title IV, HEA funds on the date that the institution credits a student’s account at the institution or pays a student or parent directly with funds received from the Secretary; or institutional funds used in advance of receiving Title IV, HEA funds. Corrective Action: To ensure timely and accurate processing of financial aid disbursements, the Office of Accounting and the Office of Financial Aid will implement a Disbursement Memorandum outlining specific procedures. The Office of Accounting must upload disbursement files into PowerCampus on the same day they are received from the Office of Financial Aid. If disbursement files cannot be uploaded due to system issues, staff illness, or other delays, the Office of Accounting must immediately notify the Office of Financial Aid. In such cases, the Office of Financial Aid will update disbursement dates in COD as needed. The Office of Financial Aid already has a process in place to identify and correct mismatches between disbursement dates in PowerFAIDS and COD, and this process will continue as part of ongoing reconciliation efforts. The Office of Accounting will maintain awareness of the importance of same-day uploads and exercise diligence in ensuring compliance with this requirement. This corrective action plan will enhance coordination between offices, reduce discrepancies, and improve compliance with federal reporting requirements. Name of Contact Person: Keri Gilbert Associate Vice President of Financial Aid Analytics and Compliance (573) 876-7106 Projected Completion Date: 3/10/2025

Categories

Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 528776 2024-002
    Significant Deficiency
  • 1105217 2024-002
    Significant Deficiency
  • 1105218 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.68M
84.063 Federal Pell Grant Program $978,963
84.116 Fund for the Improvement of Postsecondary Education $104,154
84.007 Federal Supplemental Educational Opportunity Grants $63,095
84.033 Federal Work-Study Program $55,575