Finding Text
2023-002 Disbursement of Title IV Funds (Significant Deficiency) Department of Education, SFA Cluster Criteria: An institution must disburse during the current payment period, with certain qualifying exceptions, the amount of Title IV, HEA program funds that a student enrolled at the institution, or the student’s parent, is eligible to receive for that payment period, 34 CFR 668.164(b)(1). Condition: During our testing, we noted three instances in a sample of 26 students in which Direct Loan awards were not disbursed to the student during the payment period. Qualified exceptions were not met and the three students received disbursements for the 2022-2023 academic year on August 14, 2023. Cause: Administrative oversight. Effect: Not processing awards timely results in inaccurate student accounts and may result in students being awarded Title IV Direct Loans in excess of the cumulative limitations in a subsequent period of enrollment. Repeat Finding from a Prior Year: No. Recommendation: We recommend the College implement procedures to ensure that all Title IV Direct Loans accepted by students are disbursed timely. Management Response: We concur with this finding. During the 2022-2023 academic year, the Office of Financial Aid experienced much transition. The office is now fully staffed. In addition, the staff attend internal and external training sessions regularly. Currently, disbursements are processed at least 3 times a week. The Office of Financial Aid works diligently to ensure all funds are fully disbursed by the end of each semester.