Audit 292684

FY End
2023-05-31
Total Expended
$37.95M
Findings
12
Programs
14
Organization: D'youville University (NY)
Year: 2023 Accepted: 2024-02-28

Organization Exclusion Status:

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Contacts

Name Title Type
V6UEFNSC13P6 Taylor Parker Auditee
7168297640 Cathleen Karpik Auditor
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Notes to SEFA

Title: 1. Summary of Significant Accounting Policies Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs administered by D'Youville University (the University), an entity as defined in Note 1 to the University’s consolidated financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies and nonprofit organizations, are included on the Schedule. Basis of Accounting The University uses the accrual basis of accounting for federal programs, consistent with the consolidated financial statements. The amounts reported as federal expenditures generally were obtained from the appropriate financial reports for the applicable programs and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program, which are periodically reconciled to the University’s financial reporting system. Indirect Costs The University allocates certain indirect costs to federal programs based on an approved indirect cost plan, and as such does not apply the 10% de minimis rate permitted by the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University allocates certain indirect costs to federal programs based on an approved indirect cost plan, and as such does not apply the 10% de minimis rate permitted by the Uniform Guidance. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs administered by D'Youville University (the University), an entity as defined in Note 1 to the University’s consolidated financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies and nonprofit organizations, are included on the Schedule. Basis of Accounting The University uses the accrual basis of accounting for federal programs, consistent with the consolidated financial statements. The amounts reported as federal expenditures generally were obtained from the appropriate financial reports for the applicable programs and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program, which are periodically reconciled to the University’s financial reporting system. Indirect Costs The University allocates certain indirect costs to federal programs based on an approved indirect cost plan, and as such does not apply the 10% de minimis rate permitted by the Uniform Guidance.
Title: 2. Federal Loan Programs Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs administered by D'Youville University (the University), an entity as defined in Note 1 to the University’s consolidated financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies and nonprofit organizations, are included on the Schedule. Basis of Accounting The University uses the accrual basis of accounting for federal programs, consistent with the consolidated financial statements. The amounts reported as federal expenditures generally were obtained from the appropriate financial reports for the applicable programs and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program, which are periodically reconciled to the University’s financial reporting system. Indirect Costs The University allocates certain indirect costs to federal programs based on an approved indirect cost plan, and as such does not apply the 10% de minimis rate permitted by the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University allocates certain indirect costs to federal programs based on an approved indirect cost plan, and as such does not apply the 10% de minimis rate permitted by the Uniform Guidance. Total student loans guaranteed by the U.S. Department of Education issued through the University under Federal Direct Student Loans Assistance Listing #84.268 for the year ended May 31, 2023 were as follows: Direct Subsidized Loans $2,924,484, Direct Unsubsidized Loans $17,800,369, Direct PLUS Loans $7,401,060 totaling $28,125,913. The following is a summary of loans made during the year ended May 31, 2023 and the loan balances outstanding, including interest and other charges, at May 31, 2023: U.S. Department of Education - Federal Perkins Loan Program, #84.038 loans outstanding of $662,652. U.S. Department of Health & Human Services: Nursing Faculty Loan Program, #93.264 loans made of $37,379 and loans outstanding of $487,691, Nursing Student Loans, #93.364 loans made of $921,186 and loans outstanding of $3,361,122. As required by the Uniform Guidance, the amounts shown on the Schedule are the balances of loans outstanding as of May 31, 2022 plus the amount of loans made during the year ended May 31, 2023.

Finding Details

Finding 2023-001: Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans. Criteria: The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)). Condition: Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed. Effect: The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes. Questioned Costs: $83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements. Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.
Finding 2023-001: Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans. Criteria: The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)). Condition: Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed. Effect: The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes. Questioned Costs: $83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements. Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.
Finding 2023-001: Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans. Criteria: The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)). Condition: Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed. Effect: The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes. Questioned Costs: $83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements. Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.
Finding 2023-001: Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans. Criteria: The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)). Condition: Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed. Effect: The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes. Questioned Costs: $83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements. Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.
Finding 2023-001: Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans. Criteria: The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)). Condition: Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed. Effect: The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes. Questioned Costs: $83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements. Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.
Finding 2023-002: AL #84.268 Federal Direct Student Loans. Criteria: Pursuant to regulations established by the DOE, the University is required to provide exit counseling to student borrowers who withdraw or graduate from the University within 30 days of the institution’s knowledge of the exit (34 CFR § 685.304(b)). Condition: Student borrowers who left during or after the fall semester had not yet been provided with the required materials as of the start of our audit procedures in May 2023. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying students needing exit counseling to go unfollowed. Effect: The University did not provide exit counseling to student borrowers who withdrew or graduated from the University within 30 days of the institution’s knowledge of the exit. Questioned Costs: None Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures for providing exit counseling to student borrowers are being followed and to ensure compliance with DOE requirements. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward.
Finding 2023-001: Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans. Criteria: The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)). Condition: Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed. Effect: The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes. Questioned Costs: $83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements. Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.
Finding 2023-001: Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans. Criteria: The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)). Condition: Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed. Effect: The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes. Questioned Costs: $83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements. Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.
Finding 2023-001: Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans. Criteria: The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)). Condition: Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed. Effect: The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes. Questioned Costs: $83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements. Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.
Finding 2023-001: Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans. Criteria: The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)). Condition: Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed. Effect: The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes. Questioned Costs: $83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements. Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.
Finding 2023-001: Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans. Criteria: The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)). Condition: Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed. Effect: The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes. Questioned Costs: $83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements. Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.
Finding 2023-002: AL #84.268 Federal Direct Student Loans. Criteria: Pursuant to regulations established by the DOE, the University is required to provide exit counseling to student borrowers who withdraw or graduate from the University within 30 days of the institution’s knowledge of the exit (34 CFR § 685.304(b)). Condition: Student borrowers who left during or after the fall semester had not yet been provided with the required materials as of the start of our audit procedures in May 2023. Cause: Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying students needing exit counseling to go unfollowed. Effect: The University did not provide exit counseling to student borrowers who withdrew or graduated from the University within 30 days of the institution’s knowledge of the exit. Questioned Costs: None Auditors’ Recommendation: The University should provide necessary training as they experience significant turnover to ensure procedures for providing exit counseling to student borrowers are being followed and to ensure compliance with DOE requirements. Views of Responsible Officials: The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward.