Finding 538714 (2024-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-28

AI Summary

  • Core Issue: The College failed to notify 7 out of 40 students about their direct loan disbursements, violating federal requirements.
  • Impacted Requirements: Institutions must inform students about loan amounts, types, and disbursement details before and after disbursement, as per 34 CFR 668.165.
  • Recommended Follow-up: Implement a control system to ensure all students receive timely notifications, and create an exception report for any missed notifications.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - 84.268, U.S. Department of Education, Student Financial Assistance Program - Federal Direct Student Loan Program Federal Award Identification Number and Year - P268K242876, 2023-2024 Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Before a direct disbursement loan disbursement, the institution must notify a student of the amount of funds that the student or their parent can expect to receive under each title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans. After the direct loan disbursement, the institution must provide timely notification to the student of the (1) date and amount of the disbursement, (2) student/parent’s right to cancel, and (3) procedure and time by which the student or parent must notify the institution that he or she wishes to cancel (34 CFR 668.165). Condition - The College did not provide notifications to certain students related to direct loan disbursements. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - There were 7 students in a sample of 40 students receiving direct loans which did not receive a notification. Cause and Effect - A control was lacking to ensure the notifications were sent to all students receiving direct loans. Recommendation - We recommend a control be implemented to ensure notifications are sent to all students receiving direct loans. Views of Responsible Officials and Corrective Action Plan - The director of financial aid will work with our information technology department to ensure the criteria used for triggering the notification emails is correct and capturing all the necessary students. Additionally, an exception report will be created to identify students who have not been sent the notification email for the financial aid department to review and then send the appropriate notification.

Corrective Action Plan

Condition: The College did not provide notifications to certain students related to direct loan disbursements. Planned Corrective Action: The Director of Financial Aid will work with our Information Technology department to ensure the criteria used for triggering the notification emails is correct and capturing all the necessary students. Additionally, an exception report will be created to identify students who have not been sent the notification email for the Financial Aid department to review to then send the appropriate notification. Contact person responsible for corrective action: Director of Financial Aid Anticipated Completion Date: May 31, 2025

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 538708 2024-002
    Material Weakness
  • 538709 2024-002
    Material Weakness
  • 538710 2024-002
    Material Weakness
  • 538711 2024-002
    Material Weakness
  • 538712 2024-003
    Significant Deficiency
  • 538713 2024-003
    Significant Deficiency
  • 538715 2024-001
    Material Weakness
  • 538716 2024-002
    Material Weakness
  • 538717 2024-002
    Material Weakness
  • 538718 2024-003
    Significant Deficiency
  • 538719 2024-003
    Significant Deficiency
  • 1115150 2024-002
    Material Weakness
  • 1115151 2024-002
    Material Weakness
  • 1115152 2024-002
    Material Weakness
  • 1115153 2024-002
    Material Weakness
  • 1115154 2024-003
    Significant Deficiency
  • 1115155 2024-003
    Significant Deficiency
  • 1115156 2024-001
    Material Weakness
  • 1115157 2024-001
    Material Weakness
  • 1115158 2024-002
    Material Weakness
  • 1115159 2024-002
    Material Weakness
  • 1115160 2024-003
    Significant Deficiency
  • 1115161 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $8.21M
84.268 Federal Direct Student Loans $7.43M
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $734,995
84.425 Covid-19education Stabilization Fund $418,817
84.007 Federal Pell Grant Program $208,800
10.175 Farmers Market and Local Food Promotion Program $152,944
10.310 Agriculture and Food Research Initiative (afri) $121,139
84.033 Federal Work-Study Program $42,798
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $6,804
84.048 Career and Technical Education -- Basic Grants to States $5,627
84.007 Federal Supplemental Educational Opportunity Grants $2,931
16.607 Bulletproof Vest Partnership Program $851