Finding Text
Criteria or specific requirement: At the time an institution makes a TEACH disbursement to a student, it must confirm that the student is eligible for the funds being disbursed (34 CFR 668.164(b)(3)). With the exception of FWS, disbursements are made on a payment period basis and the disbursement must be made during the current payment period (34 CFR 668.164(b)(1)). Condition: During our testing of disbursements to eligible students, we noted one instance of a TEACH award not being properly disbursed. Questioned costs: None reported. Context: In our eligibility sample of 40, one student received a TEACH award. The student did not receive the full award they were eligible for because the student had a four-term budget and the system automatically disburses based on a three-term budget. When a student has more than a three-term budget, the University must manually lock the disbursements. The University did not do that for this student. Cause: The student receiving TEACH funds was enrolled in four-terms, and the system automatically determines disbursements based on a three-term budget. Effect: The University did not disburse the full TEACH funds awarded to an eligible student until it was noted as part of the audit process. Repeat Finding: No. Recommendation: We recommend that the University disburses the remaining award to the student and implement procedures to ensure awards are properly disbursed to students who have more than a three-term budget.