Core Issue: The Organization reported incorrect loan disbursement dates for 87.5% of students, violating federal requirements.
Impacted Requirements: This affects compliance with the eligibility requirement under CFR 34 668.164.
Recommended Follow-Up: Correct the disbursement dates in the COD system and enhance controls for accurate reporting.
Finding Text
Criteria: The disbursement amounts and dates reported to the Department of Education must be the amounts and dates of the actual disbursement to the students’ accounts (CFR 34 668.164).
Condition: The Organization did not report actual loan disbursement dates to the Common Origination and Disbursement (COD) system for 7 of the 8 students in the sample (87.5%). We consider this condition to be a material weakness in internal control over compliance relating to the Eligibility compliance requirement. Statistical sampling was not used in making sample selections.
Questioned Costs: N/A
Cause: The Organization noted this was an error that occurred using the G5 drawdown date instead of the actual disbursement date per the students’ account ledgers.
Effect: The result is incorrect disbursement dates were reported to the Department of Education.
Recommendation: We recommend the Organization correct the disbursement dates in COD and tighten controls over reporting disbursement dates.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Categories
Cash ManagementEligibilityMaterial WeaknessReportingMatching / Level of Effort / EarmarkingInternal Control / Segregation of Duties