Finding Text
Finding No.: 2023-007
Federal Agency: U.S. Department of Education
AL Program: Student Financial Assistance Cluster - 84.063 Federal Pell Grant
Federal Award No.: Title IV HEA Program OPE ID 01034300
Area: Special Tests and Provisions: Disbursements to or on Behalf of Students
Questioned Costs: $---
Criteria:
34 CFR 668.165(a)(1)) requires institutions to notify students of the amount and type of Title IV
funds they are expected to receive, and how and when those disbursements will be made (often
referred to as an award letter or college financing plan) prior to making a disbursement.
When Title IV funds are credited to a student account and they exceed the amount of tuition and
fees, room and board, and other authorized charges assessed the student, a credit balance is created.
The institution must pay the resulting credit balance directly to the student or parent borrower
within 14 days after (1) the first day of class of a payment period if the credit balance occurred on
or before that day, or (2) the balance occurred if that was after the first day of class.
Condition:
The College does not provide notification to students regarding the amount and type of Title IV
funds they are expected to receive, as well as how and when those disbursements will be made.
No questioned cost is identified as the non-compliance was related a notification requirement.
within the required 14-day timeframe. No questioned cost is identified as the credit balance was
subsequently disbursed to the students.
Cause:
The non-compliance is due to inadequate processes and controls for communicating financial aid
information to students. This includes a lack of established procedures for generating and
distributing notifications to students.
Effect:
The College is in noncompliance with applicable student notification and time frame requirements
for paying credit balances to students.
Recommendation:
The College should implement a comprehensive communication strategy to ensure that all students
receive clear and timely notifications regarding their Title IV funds. This should include the
development of award letters or college financing plans that outline the amount and type of funds,
as well as the disbursement schedule. Additionally, the College should establish a monitoring
system to ensure that credit balances are disbursed within the required 14-day timeframe to
maintain compliance with federal regulations.
Views of responsible officials
The College acknowledges the finding. Refer to their corrective action plan.