Finding Text
2024-008 — Disbursements to or on Behalf of Students (Special Test #3) – Material Weakness in Internal Control Over Compliance and Noncompliance
Federal program information:
Funding agencies: U.S. Department of Education
Titles: SFA Cluster-Federal PELL Grant Program
ALN Number: 84.063
Award years: Various
Criteria: According to 34 CFR Section 668.165(a)(1), prior to make a disbursement, the school must notify students of the amount and type of Title IV funds (PELL grants) they are expected to receive, and how and when those disbursements will be made.
Condition: The College did not have documentation of notification of disbursements.
Cause: The College was affected by a ransomware attack that restricted access from their system in order to notify the students individually, as such the College notified the students verbally at a campus meeting.
Effect: The College is not in compliance with Special Test Requirements of notification of disbursements.
Questioned Costs: None
Context: Disbursement notification documentation was not maintained for fall 2023.
Recommendation: The College should comply with grant requirements and maintain documentation of compliance.
Management’s Response: The College will document notifications of disbursement as required.