Finding Text
Finding 2023-002: Material Weakness - Special Tests and Provisions - Disbursements to or on Behalf of Students Federal Program - Federal Direct Student Loans Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable ALN Number - 84.268 Federal Award Year - June 30, 2023 Criteria: Title IV regulations (34 CFR 668.165(a)(2)) states "if an institution credits a student ledger account with Direct Loan, Federal Perkins Loan or TEACH grant program funds, the institution must notify the student or parents of (i) the anticipated date and amount of the disbursement; (ii) the student's or parent's right to cancel all or a portion of that loan, loan disbursement, TEACH Grant or TEACH Grant disbursement and have the loan proceeds or TEACH Grant proceeds returned to the Secretary; and (iii) the procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, loan disbursement, TEACH Grant or TEACH Grant disbursement." Condition/Context: None of the 25 students tested received the required notification. The sample was not a statistically valid sample. Cause: The College did not have a process in place to ensure notifications were sent during the period under audit. Effect: No student received the required notification. Questioned Costs: None. Recommendation: We recommend the College implement a process to ensure required notifications are sent. Proof of sent notifications should be reviewed by a second person to ensure completeness.