Finding Text
2022-009 Eligibility Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing No. 84.268 Federal Award Identification Number and Year: P268K228567-2022 Award Periods: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control Over Compliance ? Other Matters Criteria or specific requirement: The Code of Regulations (34 CFR 668.164(i)(2)) Early Disbursements. An institution may not: (1) Make an early disbursement of a Direct Loan to a first-year, first-time borrower who is subject to the 30-day delayed disbursement requirements in 34 CFR 685.303(b)(5). This restriction does not apply if the institution is exempt from the 30-day delayed disbursement requirements under 34 CFR 685.303(b)(5)(i)(A) or (B); or (2) Compensate a student employed under the FWS program until the student earns that compensation by performing work, as provided in 34 CFR 675.16(a)(5). Condition: During our testing, Of the sixty (60) students tested for eligibility, one (1) student, who was a first-time borrower, was disbursed aid before the 30-day requirement. Questioned Costs: None Context: During our testing, Of the sixty (60) students tested for eligibility, one (1) student, who was a first-time borrower, was disbursed aid before the 30-day requirement. Cause: The College did not have the appropriate resources and staffing in place to verify they were in compliance with all requirements. Effect: Failure to properly disburse Title IV funds based on requirements in accordance with federal regulations may result in noncompliance with regulations. Repeat findings: N/A Recommendation: We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.