Finding 964605 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299965
Organization: McKendree University (IL)

AI Summary

  • Core Issue: The University failed to notify 28 out of 40 students about their loan disbursements for Fall 2022, violating federal notification requirements.
  • Impacted Requirements: This finding breaches 34 CFR 668.165 regarding loan notification and 2 CFR 200.303 on maintaining internal controls for compliance.
  • Recommended Follow-Up: The University should review and improve its loan disbursement notification procedures to ensure compliance with all required elements.

Finding Text

2023 – 003: Eligibility: Loan Notifications Federal agency: U.S. Department of Education Federal program title: Student Financial Assistance ALN Number: 84.007, 84.033, 84.063, 84.268, 84.379 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2022 through June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 34 CFR 668.165, states that an institution must notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and (3)the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement. The notification requirement for loan funds applies only if the funds are disbursed by EFT payment or master check. Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: The University did not properly notify students when loans were credited to the student's ledger account. Questioned costs: None. Context: During our Eligibility testing of 40 students, we identified that there were 38 students that received loan disbursements however, 28 students did not receive the required notification for the Fall 2022 term loan disbursement Cause: Due to staff turnover, Fall 2022 loan notifications were not sent to students. Effect: Tailored award disbursement notifications inform the student or parent of the right to cancel all or a portion of that loan or loan disbursements and have the loan proceeds returned to the holder of that loan. The notifications also outline the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan. Repeat finding: No. Recommendation: We recommend the University evaluate its procedures around disbursements of loans and ensure that notifications of disbursements are sent and contain all the required elements outlined in the FSA handbook. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Matching / Level of Effort / Earmarking Eligibility Significant Deficiency

Other Findings in this Audit

  • 388155 2023-002
    Significant Deficiency
  • 388156 2023-002
    Significant Deficiency
  • 388157 2023-002
    Significant Deficiency
  • 388158 2023-002
    Significant Deficiency
  • 388159 2023-002
    Significant Deficiency
  • 388160 2023-002
    Significant Deficiency
  • 388161 2023-003
    Significant Deficiency
  • 388162 2023-003
    Significant Deficiency
  • 388163 2023-003
    Significant Deficiency
  • 388164 2023-003
    Significant Deficiency
  • 388165 2023-003
    Significant Deficiency
  • 388166 2023-003
    Significant Deficiency
  • 388167 2023-004
    Significant Deficiency
  • 388168 2023-004
    Significant Deficiency
  • 388169 2023-004
    Significant Deficiency
  • 388170 2023-004
    Significant Deficiency
  • 388171 2023-004
    Significant Deficiency
  • 388172 2023-004
    Significant Deficiency
  • 388173 2023-005
    Significant Deficiency
  • 388174 2023-005
    Significant Deficiency
  • 388175 2023-005
    Significant Deficiency
  • 388176 2023-005
    Significant Deficiency
  • 388177 2023-005
    Significant Deficiency
  • 388178 2023-005
    Significant Deficiency
  • 388179 2023-006
    Significant Deficiency
  • 388180 2023-006
    Significant Deficiency
  • 388181 2023-006
    Significant Deficiency
  • 388182 2023-006
    Significant Deficiency
  • 388183 2023-006
    Significant Deficiency
  • 388184 2023-006
    Significant Deficiency
  • 388185 2023-007
    Significant Deficiency
  • 388186 2023-007
    Significant Deficiency
  • 388187 2023-007
    Significant Deficiency
  • 388188 2023-007
    Significant Deficiency
  • 388189 2023-007
    Significant Deficiency
  • 388190 2023-007
    Significant Deficiency
  • 388191 2023-008
    Significant Deficiency
  • 388192 2023-008
    Significant Deficiency
  • 388193 2023-008
    Significant Deficiency
  • 388194 2023-008
    Significant Deficiency
  • 388195 2023-008
    Significant Deficiency
  • 388196 2023-008
    Significant Deficiency
  • 388197 2023-009
    Significant Deficiency
  • 388198 2023-009
    Significant Deficiency
  • 388199 2023-009
    Significant Deficiency
  • 388200 2023-009
    Significant Deficiency
  • 388201 2023-009
    Significant Deficiency
  • 388202 2023-009
    Significant Deficiency
  • 388203 2023-010
    Significant Deficiency
  • 388204 2023-010
    Significant Deficiency
  • 388205 2023-010
    Significant Deficiency
  • 388206 2023-010
    Significant Deficiency
  • 388207 2023-010
    Significant Deficiency
  • 388208 2023-010
    Significant Deficiency
  • 388209 2023-011
    Significant Deficiency
  • 388210 2023-011
    Significant Deficiency
  • 388211 2023-011
    Significant Deficiency
  • 388212 2023-011
    Significant Deficiency
  • 388213 2023-011
    Significant Deficiency
  • 388214 2023-011
    Significant Deficiency
  • 964597 2023-002
    Significant Deficiency
  • 964598 2023-002
    Significant Deficiency
  • 964599 2023-002
    Significant Deficiency
  • 964600 2023-002
    Significant Deficiency
  • 964601 2023-002
    Significant Deficiency
  • 964602 2023-002
    Significant Deficiency
  • 964603 2023-003
    Significant Deficiency
  • 964604 2023-003
    Significant Deficiency
  • 964606 2023-003
    Significant Deficiency
  • 964607 2023-003
    Significant Deficiency
  • 964608 2023-003
    Significant Deficiency
  • 964609 2023-004
    Significant Deficiency
  • 964610 2023-004
    Significant Deficiency
  • 964611 2023-004
    Significant Deficiency
  • 964612 2023-004
    Significant Deficiency
  • 964613 2023-004
    Significant Deficiency
  • 964614 2023-004
    Significant Deficiency
  • 964615 2023-005
    Significant Deficiency
  • 964616 2023-005
    Significant Deficiency
  • 964617 2023-005
    Significant Deficiency
  • 964618 2023-005
    Significant Deficiency
  • 964619 2023-005
    Significant Deficiency
  • 964620 2023-005
    Significant Deficiency
  • 964621 2023-006
    Significant Deficiency
  • 964622 2023-006
    Significant Deficiency
  • 964623 2023-006
    Significant Deficiency
  • 964624 2023-006
    Significant Deficiency
  • 964625 2023-006
    Significant Deficiency
  • 964626 2023-006
    Significant Deficiency
  • 964627 2023-007
    Significant Deficiency
  • 964628 2023-007
    Significant Deficiency
  • 964629 2023-007
    Significant Deficiency
  • 964630 2023-007
    Significant Deficiency
  • 964631 2023-007
    Significant Deficiency
  • 964632 2023-007
    Significant Deficiency
  • 964633 2023-008
    Significant Deficiency
  • 964634 2023-008
    Significant Deficiency
  • 964635 2023-008
    Significant Deficiency
  • 964636 2023-008
    Significant Deficiency
  • 964637 2023-008
    Significant Deficiency
  • 964638 2023-008
    Significant Deficiency
  • 964639 2023-009
    Significant Deficiency
  • 964640 2023-009
    Significant Deficiency
  • 964641 2023-009
    Significant Deficiency
  • 964642 2023-009
    Significant Deficiency
  • 964643 2023-009
    Significant Deficiency
  • 964644 2023-009
    Significant Deficiency
  • 964645 2023-010
    Significant Deficiency
  • 964646 2023-010
    Significant Deficiency
  • 964647 2023-010
    Significant Deficiency
  • 964648 2023-010
    Significant Deficiency
  • 964649 2023-010
    Significant Deficiency
  • 964650 2023-010
    Significant Deficiency
  • 964651 2023-011
    Significant Deficiency
  • 964652 2023-011
    Significant Deficiency
  • 964653 2023-011
    Significant Deficiency
  • 964654 2023-011
    Significant Deficiency
  • 964655 2023-011
    Significant Deficiency
  • 964656 2023-011
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.79M
84.063 Federal Pell Grant Program $2.29M
84.033 Federal Work-Study Program $99,527
84.007 Federal Supplemental Educational Opportunity Grants $90,109
84.038 Federal Perkins Loan Program $74,817
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $11,316