Finding Text
2022-004 ? Exit Counseling Federal agency: U.S. Department of Education Federal program title: Student Financial Assistance Cluster Federal assistance listing number: 84.268 Award period: 7/1/2021 ? 6/30/2022 Type of finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.304 requires entrance counseling be performed before disbursing loan funds to the student for Direct Subsidized Loan, Direct Unsubsidized Loan and Direct PLUS Loan to a graduate or professional student. The regulations also require exit counseling for all students who cease at least half-time study at the school. Condition: Exit counseling was not completed. Questioned costs: None. Context: During our testing, we noted 1 student out of a sample of 40 tested where the University failed to notify the student to complete exit counseling. Cause: The University?s process and controls did not ensure that the student was notified, and that proper support was maintained to document the process took place. Effect: A student did not receive the proper loan counseling which may contribute to a higher default rate. Repeat Finding: No. Auditors? Recommendation: We recommend the University review its policies and procedures around exit counseling to ensure students are receiving proper counseling and documentation is maintained of this process in the University?s student files. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.