Finding Text
Finding - Special Tests and Provisions: Borrower Transmission Data - Federal Direct Student Loans, Assistance Listing Number 84.268. June 30, 2022 Award Year, U.S. Department of Education Criteria or Specific Requirement Colleges must report all loan disbursements and submit required records to the Direct Loan Servicing System (?DLSS?) via the Common Origination and Disbursement (?COD?) within 30 days of disbursement. Disbursement dates and amounts in the DLSS must be supported by the Seminary?s records (34 CFR sections 685.102(b), 685.301 and 303). The date of disbursement determines when a student becomes a federal student aid (?FSA?) recipient and has the rights and responsibilities of an FSA recipient. A disbursement occurs when the college credits a student?s account or pays a student or parent directly with: ? FSA program funds received from the Department; ? FSA program funds received from a Direct Loan lender, or ? Seminary funds labeled as FSA program funds in advance of receiving actual FSA program funds. (Student Financial Aid Handbook, Volume 4, Chapter 1, pages 4-9) Condition and Context Out of thirteen students selected for testing, one student had a date reported to COD outside of the required timeframe. Cause Due to staff turnover and a failure to follow controls, the Seminary did not report to COD with timely data following disbursement to student accounts. Effect or Potential Effect Delayed reporting of disbursement dates affect accurate administration of loan period start and end dates. Questioned Costs None noted. Identification as a Repeat Finding This is a repeat finding. Recommendation Following each disbursement, the Financial Aid Office should review and agree COD data to student accounts data to ensure accurate and timely reporting of borrower information. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.