Finding 537614 (2024-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-27
Audit: 348884
Organization: Missouri Valley College (MO)

AI Summary

  • Core Issue: 22 out of 25 student loan notifications were not properly documented.
  • Impacted Requirements: Federal guidelines require timely written notifications to borrowers about loan disbursements.
  • Recommended Follow-Up: The College should create new policies and procedures to ensure compliance and maintain proper records.

Finding Text

Statement of Condition: From our testing sample of twenty-five (25) students, we found twenty-two (22) instances where notices of federal direct loans being credited to a student’s account could not be vouched. Criteria: In accordance with Volume 4 Chapter 2 of the Federal Student Aid Handbook, the school must notify the borrower in writing within 30 days of funds being credited to the account: 1) the anticipated date and amount of disbursement, 2) the right to cancel, and 3) the deadlines to notify the school if they wish to cancel. In accordance with Volume 2 Chapter 7 of the Federal Student Aid Handbook, a school must keep comprehensive, accurate program and fiscal records related to its use of FSA Funds. Student records should be retained to “show a clear audit trail for FSA program expenditures.” Effect of Condition: We found twenty-two (22) instances where borrower notifications were not retained. Cause of Condition: The College implemented a new system in the current year. Recommendation: We recommend the College develop policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.

Corrective Action Plan

2024-003 Plan: As of 03/20/2025 this is complete. Objective: Ensure that there is a recorded time date stamp of the notification itself. Process: To implement this in an effective and accurate setup we will execute the Batch Assign Transmittal CM Codes (BATC) process to improve communication code assignment and correspondence management. To implement the Batch Assign Transmittal CM Codes (BATC) process, we will execute the BATC process immediately following the completion of the transmittal, ensuring all necessary parameters are set accurately. Next, we will establish a communication code through the Communication Management Center (CMC), with IT Support responsible for associating an immediate print document with the code. This setup will leverage the options available within the BATC system, including assignment to specific awards, categories, and exclusions as needed. Subsequently, we will utilize BATC to identify recipients for the communication code by setting parameters based on academic year, date ranges, award periods, and award categories. Once recipients are identified, we will verify that all students are included by checking the TA.ACYR file and the relevant code and date fields to ensure no omissions. Following this verification, we will assign the communication code within the CRI system, ensuring the status is marked as "Received" so that the immediate print document can be scheduled as pending correspondence. The next step involves managing the correspondence through the PCB process, with the option to use PCEX if necessary. It's important to ensure that the immediate print document is configured for email distribution. A review of the entire process will then be conducted by the office staff, analyzing outcomes and gathering feedback from team members to document any issues encountered and the resolutions applied. Finally, we will focus on continuous improvement, implementing feedback to address any problematic areas and scheduling a training session if required to cover the BATC and communication code processes. This structured approach aims to streamline operations and enhance accuracy in communication code assignments. This outlines the steps necessary to streamline the BATC process and enhance accuracy in communication code assignments. Regular reviews and adjustments based on team feedback will ensure ongoing improvement.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 537613 2024-002
    Significant Deficiency Repeat
  • 537615 2024-002
    Significant Deficiency Repeat
  • 537616 2024-003
    Significant Deficiency
  • 537617 2024-002
    Significant Deficiency Repeat
  • 537618 2024-003
    Significant Deficiency
  • 537619 2024-002
    Significant Deficiency Repeat
  • 537620 2024-003
    Significant Deficiency
  • 537621 2024-002
    Significant Deficiency Repeat
  • 537622 2024-003
    Significant Deficiency
  • 1114055 2024-002
    Significant Deficiency Repeat
  • 1114056 2024-003
    Significant Deficiency
  • 1114057 2024-002
    Significant Deficiency Repeat
  • 1114058 2024-003
    Significant Deficiency
  • 1114059 2024-002
    Significant Deficiency Repeat
  • 1114060 2024-003
    Significant Deficiency
  • 1114061 2024-002
    Significant Deficiency Repeat
  • 1114062 2024-003
    Significant Deficiency
  • 1114063 2024-002
    Significant Deficiency Repeat
  • 1114064 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.08M
84.063 Federal Pell Grant Program $2.84M
93.493 Community Services Block Grant $1.38M
84.116 Fund for the Improvement of Postsecondary Education $470,864
14.251 Economic Development Initiative $388,927
84.007 Federal Supplemental Educational Opportunity Grants $119,999
84.033 Federal Work-Study Program $83,737
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $2,000