Finding 637181 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-26

AI Summary

  • Core Issue: The university failed to notify 21 students about their Direct Loan disbursements within the required 30-day timeframe.
  • Impacted Requirements: This noncompliance violates federal regulations outlined in 34 CFR 668.165(a)(3)(i).
  • Recommended Follow-Up: The university should enhance oversight of the disbursement notification process and implement weekly notifications starting summer 2023.

Finding Text

Finding 2022-002 Disbursements to or on Behalf of Students Identification of the Federal Program: Student Financial Assistance Cluster, United States Department of Education. OPE ID Affected: 00141600 Compliance Requirement: Special Tests and Provisions Criteria: The Federal Register (34 CFR 668.165(a)(3)(i)) requires that the institution must provide notice in writing to students no later than thirty days after crediting a Direct Loan, Federal Perkins Loan, or TEACH Grant disbursement to the student's ledger account when the institution obtains affirmative confirmation from the student. Condition: During testing of the disbursement to or on behalf of students process, the auditors noted twenty-one participating students, out of a sample size of forty students, who were notified between 36 and 93 days after crediting a Direct Loan to the student's ledger account. Cause: As part of the student disbursement notification process, the Organization has procedures in place for notifying students of Direct Loan disbursements timely and accurately. However, it appears that due to administrative oversight, there were certain disbursement dates in which the notifications were not made timely. Effect: The effect of this condition is noncompliance with U.S. Department of Education regulations. Questioned Costs: N/A Context: Our testing noted the twenty-one exceptions identified were for various dates throughout the period under audit. Repeat Finding: N/A Recommendation: We recommend that the University of Bridgeport review its current student disbursement notification process and incorporate additional oversight to ensure that all required written notifications are made timely to the applicable students. Views of Responsible Officials and Planned Corrective Actions: We concur with this finding and have addressed it in our Corrective Action Plan. Based on this finding, we will implement a new process starting with the summer 2023 semester. Disbursement notifications will be sent weekly.

Categories

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $38.19M
84.425 Education Stabilization Fund Student Aid Portion $4.87M
84.063 Federal Pell Grant Program $4.35M
84.425 Education Stabilization Fund - Institutional Resilience and Expanded Postsecondary Opportunity $1.13M
21.027 Coronavirus State and Local Fiscal Recovery Funds $965,334
84.007 Federal Supplemental Educational Opportunity Grants $481,702
84.033 Federal Work-Study Program $434,989
84.425 Education Stabilization Fund-Strengthening Institutions Program $384,732
84.165 Magnet Schools Assistance $378,962
84.425 Education Stabilization Fund Elementary and Secondary School Emergency Relief Fund $223,553
84.042 Trio-Student Support Services $222,085
93.732 Mental and Behavioral Health Education and Training Grants $197,237
17.268 H-1b Job Training Grants $194,861
84.010 Title I Grants to Local Educational Agencies $183,446
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $182,715
93.603 Adoption and Legal Guardianship Incentive Payments $114,078
84.425 Education Stabilization Fund - Institutional Portion $100,000
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $74,171
84.367 Supporting Effective Instruction State Grants $55,802
84.425 Education Stabilization Fundamerican Rescue Plan - Elementary and Secondary School Emergency Relief $50,000
84.335 Child Care Access Means Parents in School $44,960
84.365 English Language Acquisition State Grants $18,357
43.008 Education-Montana Space Grant Consortium Opportunities $16,769
84.031 Higher Education-Institutional Aid $10,818
43.001 Science Montana Space Grant Consortium Opportunities in Stem 2020-2024 $2,500
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $1,258