Finding Text
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program and Federal Pell Grant Program AL# and Program Expenditure: 84.268 ($563,808) and 84.063 ($373,699) Award Number: P268K237533 and P063P227533 Federal Award Year: July 1, 2022 to June 30, 202 Questioned Costs: $-0- Condition Found: The Common Origination and Disbursement System (“COD”) disbursement date did not agree with the disbursement date on accounts for twelve of the twelve students receiving Federal Direct Loans and thirteen of the fourteen students receiving Federal Pell Grant funds in our sample. A total of nineteen students were affected by this finding. Criteria: The disbursement date to be reported to the COD is the date that the institution credits funds to a student’s account or pays funds to a student or parent directly. Cause: The staff misunderstood the regulations and believed they had three days to post the funds after the funds were received in the bank account. However, the posted disbursement date did not agree with disbursement date posted in COD. Possible Asserted Effect: The disbursement date in COD is the date interest begins accruing on the Federal Direct Loans. In order for the interest calculation to be accurate, the disbursement date in COD should be the date the students received the loan funds. Repeat Finding: See Finding 2022-003 for a similar finding in the prior year. While the findings were similar, the cause was different in each year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should correct the disbursement dates on the student accounts so that the dates agree with the COD disbursement dates. Management Response: The Vice President of Finance corrected the disbursement dates for the students in question in September 2023. Going forward, the Student Financial Aid Office and Business Office will coordinate the drawdown of funds, reporting to COD, and posting to student accounts. The personnel of the College understands that while on the cash advance method to disburse funds, they have three business days from the date the funds are received to post the funds to the student accounts. However, the disbursement date on the student account and in COD still must agree.