Audit 313766

SECTION 3. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDSFinding 2022-001Identification of the Federal Program:United States Department of EducationFederal Pell Grant Program (84.063)Criteria:34 CFR 668.22Condition:Incorrect Return of Title IV Funds (?R2T4?)Cause:The cause was human error.Effect:Federal funds that would have been available to other eligible grant recipients were not available. Further, the United States Department of Education may have been subject to unnecessary interest and special allowance.Questioned Costs:$268 in 2020-2021 Federal Pell Grant program funds.Description of the Nature and Extent of the Issues Reported:The Institution had a total of one thousand seven hundred twenty-six (1,726) students who withdrew during the audit period. We tested the files of twenty-five (25) of those students. It was determined that one (1) R2T4 was not calculated correctly.For student #AR8, the R2T4 in question was returned on August 3, 2021, in the amount of $1,101 in 2020-2021 Federal Pell Grant Program funds, in the amount of $1,732 in 2020-2021 Subsidized Federal Direct Loan program funds, and in the amount of $2,969 in 2020-2021 Unsubsidized Federal Direct Loan program funds. The Institution should have returned $1,369 in 2020-2021 Federal Pell Grant Program funds $1,732 in 2020-2021 Subsidized Federal Direct Loan program funds and $2,969 in 2020-2021 Unsubsidized Federal Direct Loan program funds, which resulted in an under return of $268 in 2020-2021 Federal Pell Grant program funds. The Institution used an incorrect number of days in the payment period in the R2T4 calculation, resulting in an incorrect percentage of aid earned.Subsequent to the audit, the Institution returned $268 to the 2020-2021 Federal Pell Grant program funds on behalf of student #AR8.The instance of noncompliance represents an error rate in the number of sampled items tested equal to 4.0% (1 of 25) from a population of 1,726 and in the dollar amount of the sampled items tested equal to 0.45% ($268 of 59,908) from a population of $8,601,672. This is a statistically valid sample.Repeat Finding:This is not a repeat finding.Recommendations:The Institution needs to review and update its procedures to ensure that the R2T4 calculation process is completed correctly.Views of Responsible Officials:The Institution agrees with the finding and recommendationThe Institution has reviewed the details of the finding and determined the error to be an isolated instance due to human error. The Institution returned $268 to the Federal Pell Grant Program on behalf of student #AR8. Student AR8 failed a class/module for the payment period in a non-standard program. On the Return to Title IV (R2T4) calculation, the payment period ending date should have been extended by an additional class/module. File Review will be added to the final review of all R2T4 calculations prepared for non-standard programs. If the academic transcript includes repeat classes/modules, payment periods used in the calculation will be reviewed for accuracy.

SECTION 3. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDSFinding 2022-001Identification of the Federal Program:United States Department of EducationFederal Pell Grant Program (84.063)Criteria:34 CFR 668.22Condition:Incorrect Return of Title IV Funds (?R2T4?)Cause:The cause was human error.Effect:Federal funds that would have been available to other eligible grant recipients were not available. Further, the United States Department of Education may have been subject to unnecessary interest and special allowance.Questioned Costs:$268 in 2020-2021 Federal Pell Grant program funds.Description of the Nature and Extent of the Issues Reported:The Institution had a total of one thousand seven hundred twenty-six (1,726) students who withdrew during the audit period. We tested the files of twenty-five (25) of those students. It was determined that one (1) R2T4 was not calculated correctly.For student #AR8, the R2T4 in question was returned on August 3, 2021, in the amount of $1,101 in 2020-2021 Federal Pell Grant Program funds, in the amount of $1,732 in 2020-2021 Subsidized Federal Direct Loan program funds, and in the amount of $2,969 in 2020-2021 Unsubsidized Federal Direct Loan program funds. The Institution should have returned $1,369 in 2020-2021 Federal Pell Grant Program funds $1,732 in 2020-2021 Subsidized Federal Direct Loan program funds and $2,969 in 2020-2021 Unsubsidized Federal Direct Loan program funds, which resulted in an under return of $268 in 2020-2021 Federal Pell Grant program funds. The Institution used an incorrect number of days in the payment period in the R2T4 calculation, resulting in an incorrect percentage of aid earned.Subsequent to the audit, the Institution returned $268 to the 2020-2021 Federal Pell Grant program funds on behalf of student #AR8.The instance of noncompliance represents an error rate in the number of sampled items tested equal to 4.0% (1 of 25) from a population of 1,726 and in the dollar amount of the sampled items tested equal to 0.45% ($268 of 59,908) from a population of $8,601,672. This is a statistically valid sample.Repeat Finding:This is not a repeat finding.Recommendations:The Institution needs to review and update its procedures to ensure that the R2T4 calculation process is completed correctly.Views of Responsible Officials:The Institution agrees with the finding and recommendationThe Institution has reviewed the details of the finding and determined the error to be an isolated instance due to human error. The Institution returned $268 to the Federal Pell Grant Program on behalf of student #AR8. Student AR8 failed a class/module for the payment period in a non-standard program. On the Return to Title IV (R2T4) calculation, the payment period ending date should have been extended by an additional class/module. File Review will be added to the final review of all R2T4 calculations prepared for non-standard programs. If the academic transcript includes repeat classes/modules, payment periods used in the calculation will be reviewed for accuracy.