Finding Text
FINDING 2024-005– Aid Not Disbursed
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Direct Student Loan Program
Federal Pell Grant Program
ALN and Program Expenditures: 84.268 ($709,913)
84.063 ($487,504)
Award Number: P268K243315
P063P233315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $2,722(84.268)
$1,023(84.063)
Condition Found:
The second financial aid disbursement was not made to one of the twenty students in our sample. The student in question was eligible to receive $1,023 of Federal Pell Grant funds, $1,732 of subsidized Federal Direct Loan funds, and $990 of unsubsidized Federal Direct Loan Funds.
Criteria:
Title IV aid should be made in two disbursements. Typically, there is one disbursement per academic period or semester as in the case of Randall University.
Cause:
The disbursements for the student in question were overlooked.
Possible Asserted Effect:
The student did not receive $1,023 of Federal Pell Grant funds, $1,732 of subsidized Federal Direct Loan funds, and $990 of unsubsidized Federal Direct Loan Funds that the student was eligible to receive.
Repeat Finding:
There was not a similar finding in the prior year.
Recommendation:
The University should disburse the aid to the student in question. Checks and balances should be created to ensure that aid is awarded and requested for all eligible students.
Management Response:
The University is on the HCM2 method for disbursing aid. The funds in question will be posted to the student’s account. The University will request the funds from the Department of Education when the next aid batch is submitted.