Audit 348023

Criteria: 34 CFR 668.22 requires that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with Federal regulations and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition: The federal aid refunds for one of the five students tested were not returned within 45 days of the date of the withdrawal. The sample was not a statistically valid sample. Cause: The University’s procedures for the return of Title IV funds were not followed. In addition, there was not a consistent independent review of the refund calculations. Effect: The University was in possession of funds belonging to the federal government longer than allowed. Questioned Costs: There were approximately $39,000 of known and likely questioned costs. Recommendation: The University should increase emphasis on timely processing of refund transactions. Views of Responsible Officials: Management acknowledges and concurs with the finding and has corrected the student records discovered in the audit. The University plans to complete a comprehensive review of past withdrawals to ensure timely returns were completed. Additionally, the University will be implementing additional controls and procedures to ensure returns are reviewed and processed timely.

Criteria: 34 CFR 668.22 requires that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with Federal regulations and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition: The federal aid refunds for one of the five students tested were not returned within 45 days of the date of the withdrawal. The sample was not a statistically valid sample. Cause: The University’s procedures for the return of Title IV funds were not followed. In addition, there was not a consistent independent review of the refund calculations. Effect: The University was in possession of funds belonging to the federal government longer than allowed. Questioned Costs: There were approximately $39,000 of known and likely questioned costs. Recommendation: The University should increase emphasis on timely processing of refund transactions. Views of Responsible Officials: Management acknowledges and concurs with the finding and has corrected the student records discovered in the audit. The University plans to complete a comprehensive review of past withdrawals to ensure timely returns were completed. Additionally, the University will be implementing additional controls and procedures to ensure returns are reviewed and processed timely.