Finding Text
Finding 2022-002: Information on the Federal Program: CFDA 84.268 ? Federal Direct Student Loan. United States of Department of Education. Compliance Requirements: Special Tests and Provisions Type of Finding: Significant deficiency. Criteria: Program requirements state that the institution may not disburse or deliver the first installment of Direct Loans to first-year undergraduates who are first time borrowers until 30 days after the student?s first day of classes (34 CFR 668.164(i)(2)). Condition: For each student in the sample selection receiving direct loans, we reviewed the school?s documentation to determine if the student was a first-year undergraduates who are first time borrowers to determine is the institution disburse the first installment of direct loans until 30 days after the first day of class. Questioned Costs: $0 Context: We identified one student who was not coded as first-year undergraduate who was a first-time borrower in the Colleague System when he should have. This incorrect coding caused the student to receive their first installment of direct loans before the 30 days required time frame. Effect or Potential Effect: Early distribution to first-year undergraduates who are first time borrowers students who are subject to the 30-day delayed disbursement requirement Cause: Internal control process failure. Repeat Finding: No. Recommendation: TVCC should develop and institute a sustainable internal control system for appropriate identification of first-year undergraduates who are first time borrowers. Views of Responsible Official: We agree with this finding and recommendation. The student identified in this finding did not attend in the fall and when switching over to a spring summer loan the student was coded incorrectly. The TVCC Financial Aid Office has updated our process in packaging students, that start in the spring term and did not attend in the fall, to include reviewing those students manually. Please see the attached action plan related to this finding in this report.