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Finding 2022-003: Significant Deficiency Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Assistance Listing Number: 84.007; 84.033; 84.038; 84.063; 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.165) states that institutions must notify students or parents in writing of (1) the date and amount of the disbursement; (2) the student's right, or parent's right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Condition/Context: 25 students in a sample of 25 were not given notifications that met the required criteria. Students were notified of awards throughout the academic year, but notifications did not meet the required criteria above. Additionally, the required information on the timing and procedures for canceling loans was made available to students on the University's website and financial aid office The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The script written in the University's software to send these notifications broke during September 2021 and was not fixed timely. Effect: The students did not receive the required notifications. Recommendation: The University should correct the software error and create a contingency plan to manually notify students to prevent awarding Title IV funds without proper notification. Management Response: The University will correct the script error and implement better procedures to ensure compliance with notification requirements. Evaluation will be on-going as a best practice.