Finding Text
2022 ? 001: Student Eligibility and Awarding: Exit CounselingFederal Agency: Department of EducationFederal Program: Student Federal Assistance Cluster- Direct LoansAssistance Listing Number: 84.268Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance and NoncomplianceCriteria: The Code of Federal Regulations, 34 CFR 685.304 require entrance counseling be performedbefore disbursing loan funds to the student for Direct Subsidized Loan, Direct Unsubsidized Loan andDirect PLUS Loan to a graduate or professional student . The regulations also require exit counselingfor all students who ceases at least half-time study at the school.Condition: Two out of 40 students selected for testing, in our statistically valid sample, did not receiveexit counseling within the required timeframe prescribed by the Department of Education.Questioned Costs: None.Context: The College disbursed $1,316,928 in Federal Direct Student Loan Program during the fiscalyear.Cause: The College?s? internal controls did not ensure compliance with the applicable Title IVregulations.Effect: Students are not receiving the proper loan counseling which may contribute to a higher defaultrate.Repeat Finding: This was not a finding in the prior year.Recommendation: We recommend the college review its policies and procedures around disbursingexit counseling information to students to ensure students are receiving proper counseling and ensureentrance counseling is documented before loans disbursements are made.Views of Responsible Officials and Planned Corrective Actions: Please refer to the attachedCorrective Action Plan.