Finding Text
Information of Federal Program:
Student Financial Aid Cluster
Federal Pell Grant Program – CFDA No. 84.063
Federal Family Education Loans – CFDA No. 84.032
Federal Supplemental Educational Opportunity Grant – CFDA No. 84.007
Federal Work-Study Program – CFDA No. 84.033
Criteria: The institution must disburse Federal funds requested as soon as administratively
feasible but no later than 3 business days following the date the institution received those
funds. A credit balance on a students account must be paid directly to the student or parent
as soon as possible, but no later than fourteen (14) days after the balance occurred. 34 CFR
sections 668.162, 668.164, 668.167(b), 682.603, and 682.604(d)). Condition: During our testing of the financial aid disbursements it was noted the College is
not maintaining records of what students the drawdowns were for, therefore we were unable
to determine if the amounts were posted to the student accounts within the required time
frame and subsequently were paying out any credit balances created on student accounts.
Cause: The College did not have proper procedures in place regarding record retention.
Effect or Potential Effect: The deficiencies in the design and operation of the internal controls
in this area could result in the delayed payment to the student.
Questioned Costs: None
Context: During our testing of student financial aid disbursements, it was noted that Fort
Scott Community College’s internal controls over posting to student accounts broke down
after there was a change in staff. Forty (40) of forty (40) files tested, the College was unable
to produce reports showing what students were included with each drawdown from the
Department of Education, therefore resulting in an inability to complete the test.
Recommendation: Policies and procedures should be written to provide internal control over
the documentation used to complete the drawdowns from the Department of Education.
We recommend the College establish a communication and record retention process that
allows for the notification of the student financial aid proceeds and a control in place that
allows the financial aid department to know the student financial aid was applied to the
student’s account timely.
Views of responsible officials and planned corrective action: See the Corrective Action Plan on
pages 72-75 of the current year audit.