Finding Text
2022?002 Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster Assistance Listing Number: Various Award Period: July 1, 2021, through June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.301(a)(2)(iii) outlines that an institution must provide the anticipated and actual disbursements dates of loan proceeds. In addition, The Code of Federal Regulations, 34 CFR 690.83(b)(2) outlines that an institution must provide the other information (Disbursement information for Pell) in an appropriate manor. Condition: Disbursement dates recorded on student accounts for Direct Loan and Pell disbursements did not agree to the disbursement date reported to Common Origination and Disbursement (COD). Questioned costs: Unknown as incorrect dates ultimately affect interest on Direct Loans. Context: In 44 of the 60 students tested, we noted discrepancies in disbursement dates when comparing disbursements dates in Campus Nexus to what was ultimately reported to COD. We also noted 1 discrepancy in which the applied date and the disbursement date within COD were not within the 15 day requirement. Cause: Lack of appropriate policy and procedure in place regarding reporting of students to COD for the year under audit. Effect: Noncompliance with federal regulations which could lead to incorrect repayment terms for students. Repeat Finding: Yes ? 2021-003. Recommendation: We recommend that the University review their policies and procedures to ensure accurate reporting to COD. Views of responsible officials: There is no disagreement with the audit finding. Management has addressed their corrective action plan in a separately issued letter.