Audit 390824

Special Tests and Provisions – Return of Title IV Funds Student Financial Assistance Cluster, Assistance Listing Number 84.268 Federal Direct Student Loans, Assistance Listing Number 84.063 Federal Grant Program, Assistance Listing Number 84.007 Federal Supplemental Education Opportunity Grants U.S. Department of Education Program Year 2024–2025 Type of Finding: Other Instance of Noncompliance and Deficiency Criteria: Management is responsible for compliance with Special Tests and Provisions – Return of Title IV Funds procedures in accordance with the Uniform Guidance. (34 CFR 668.22) Condition: Federal regulations provide that the University is responsible for properly calculating return of Title IV Funds. The University’s internal control system did not prevent a return from being improperly calculated. Questioned Costs: One out of the six returns was not calculated properly, resulting in the return being understated by $353. Assistance Listing Number 84.268 Federal Direct Student Loans Context: Out of a population of 54 withdrawn students requiring return of Title IV funds, a sample of six withdrawn students were selected for testing. One out of the six returns was not calculated properly, resulting in the return being understated by $353. Our sampling method was not, and was not intended to be statically valid. Effect: Failure to properly calculate return of Title IV funds may result in the University disbursing the incorrect amount of returns. Cause: The University’s processes did not ensure that return of Title IV funds were being calculated properly. Repeat Finding: 2024-002 Recommendation: We recommend the University evaluate controls around monitoring return of Title IV calcuations, ensuring the amounts and dates utilized in the calculation forms are correct. Views of Responsible Officials: Management concurs with the finding and recommendation. See further information on the corrective action plan provided by management.