Finding Text
2023-002 Significant Deficiency: Documentation Regarding Offer of a Post-Withdrawal Disbursement
(U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268; Federal Pell Grant
Program, ALN #84.063)
Criteria: In accordance with 34 CFR 668.22(a)(6), a post-withdrawal disbursement must be made to
the student for any grant funds they are eligible for within 45 days of the date of determination.
Moreover, the University must offer to disburse directly to a student, or parent in the case of a parent
PLUS loan, any amount of a post-withdrawal disbursement of loan funds that is not credited to the
student’s account. The disbursement of loan funds must occur after the University received
confirmation from the student’s or parent’s intentions, respectively.
Statement of Condition: During the 2023 audit, it was noted that the University was unable to provide
supporting documentation detailing the student was offered a post-withdrawal disbursement.
Questioned Costs: This finding is monetary in nature. In the instances noted in testing, the total error
identified is $736 in under-award. Extrapolation of this monetary error was not necessary as the 11
withdrawal students tested as part of the 2023 audit were the entire withdrawal population for the
period under audit.
Perspective Information: The 2023 audit included a detailed testing of 11 withdrawal student files, of
which this significant deficiency applies to 3, indicating an error rate of 27.3%.
Cause and Effect: Due to the University’s lack of retention of appropriate documentation, we were
unable to determine or test the post-withdrawal disbursements were appropriately offered to the
affected students resulting in the inability to appropriately review the documentation to satisfy
testing requirements.
Recommendation: The University should maintain documentation of sending the student, or parent
when applicable, notification regarding their eligibility for a post-withdrawal disbursement.
View of Responsible Officials: While the University was completing this process the lack of
documentation has been addressed. The University now has the student verify receipt of this
information on the withdrawal form itself and has other notification procedures in place to ensure
that this is completed.