Finding 945876 (2023-008)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-15
Audit: 290607
Organization: Newberry College (SC)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The College failed to keep records of exit counseling for students who left, with 3 out of 5 students lacking timely documentation.
  • Impacted Requirements: This violates 34 CFR 685.304(b), which mandates exit counseling for all Federal Direct Loan students.
  • Recommended Follow-Up: Establish a reliable system to document exit counseling instructions to help lower the default rate.

Finding Text

Lack of Documentation of Exit Counseling DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Loans Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The College did not retain evidence of providing exit counseling to all students who left or did not send exit counseling instructions timely. Criteria: 34 CFR 685.304(b) Questioned Costs: $0 Context: Out of 5 students tested for exit counseling, 3 did not have documentation that exit counseling instructions were sent timely. The College sent exit counseling instructions to the students in the sample during the audit. Cause: With transitions in personnel in the financial aid office, documentation of notifying students was not available. Effect: Exit counseling packets assist in reducing the default rate and is a requirement for all students with Federal Direct Loans. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the College develop a system to document that exit counseling instructions are sent to all students and to assist in reducing the College’s default rate. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Student Financial Aid Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $24.29M
84.268 Federal Direct Student Loans $10.09M
84.063 Federal Pell Grant Program $3.46M
84.425 Covid-19 Education Stabilization Fund Heerf - Strengthening Institutions Program $377,730
84.007 Federal Supplemental Educational Opportunity Grants $169,094
84.033 Federal Work-Study Program $103,200
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $7,544