Finding Text
Finding No. 2023-001
Reporting
Federal Program
Student Financial Assistance Cluster
AL No.
84.268 Federal Direct Student Loans
Federal Agency
U.S. Department of Education
Federal Award Years
October 1, 2021 to September 30, 2022
October 1, 2022 to September 30, 2023
Criteria or Requirement
Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan or TEACH Grants.
Condition and Context
During our testwork, we selected a sample of 40 students that were awarded federal loans during fiscal year 2023. Within our sample, we noted 10 out of 160 instances across 9 students in which the College did notify the student, no earlier than 30 days before, and no later than 30 days, after crediting the student’s account with Direct Loan as required.
Cause and Potential Effect
Noncompliance due to no control in place to ensure that all notifications of loan disbursements are submitted promptly. The federal loan disbursement notification reporting exceptions are systemic in nature.
Questioned Cost
There were no questioned cost associated with the finding.
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Identification of Whether the Audit Finding is a Repeat Finding in the Immediately Prior Audit
This is not a repeat finding in the immediately prior year audit.
Recommendation
We recommend that the College strengthen its processes and controls to ensure timely reporting of loan disbursement notifications to students and that additional supervisory review procedures be implemented to monitor timely reporting of these notifications.
View of Responsible Officials
Management agrees with the finding. An enhanced internal control process will be implemented by the Office of Financial Aid and Scholarship Department to ensure that all disbursement notifications are reported to the student within the 30 day reporting requirement