Audit 391524

2025-001 Significant Deficiency: Untimely Return of Title IV Funds (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268; Federal Pell Grant Program, ALN #84.063; Federal Supplemental Opportunity Grant Program, ALN #84.007; and TEACH Grant Program, ALN #84.379) Criteria: In accordance with 34 CFR 668.22(j), an institution must complete calculation and return the amount of Title IV funds for which it is responsible as soon as possible, but no later than 45 days after the date of the institution's determination that the student withdrew. Statement of Condition: During the audit, it was noted that the University did not return the determined unearned Title IV funds for one student within the prescribed timeframe. Questioned Costs: There is no monetary error associated with this lapse. Perspective Information: The audit included a detailed testing of 2 student files, of which this significant deficiency applies to 1, indicating an error rate of 50.00%. No other possible students to which this issue could have affected exist beyond those tested during the audit, as all withdrawn students were examined. Cause and Effect: For the noted withdrawal, the return of unearned aid was not completed within the 45-day window due to lapses in communication and nonadherence to established procedures. This could result in compliance deficiencies and affect future aid eligibility for institutions that routinely miss this deadline. Recommendation: The University should ensure that return to Title IV funds calculations and returns of unearned funds, if applicable, are completed within a reasonable timeframe once a student has officially withdrawn or been determined to have unofficially withdrawn. This can be achieved through a thorough review of the current process and enhanced oversight to ensure timely returns. View of Responsible Officials: The finance department has been building back proper procedure and protocol after experiencing several transitions in key departments. The Financial Aid Coordinator left in Spring, paralleled by a medical absence of our VP of Finance, both of which contributed to this oversight. Systems are being implemented to ensure that there are layers of security in place to make sure that compliance deadlines are met. These additional layers consist of cross-training staff, encouraging clear concise communication, and implementing control factors within the software.

2025-002 Significant Deficiency: Unsupported Information Utilized in Return to Title IV Funds Calculation (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268; Federal Pell Grant Program, ALN #84.063; Federal Supplemental Opportunity Grant Program, ALN #84.007; and TEACH Grant Program, ALN #84.379) Criteria: In accordance with 34 CFR 668.22(b), an institution must document a student's withdrawal date determined and maintain the documentation as of the date of the institution's determination that the student withdrew. Statement of Condition: During the audit, it was noted that the University could not provide adequate support for the last day of attendance used in completing the return to Title IV funds calculation for one of the withdrawn students tested. Questioned Costs: There is no known monetary error related to this specific issue. Perspective Information: The audit included a detailed testing of 2 student files, of which this significant deficiency applies to 1, indicating an error rate of 50.0%. No other possible students to which this issue could have affected exist beyond those tested during the audit, as all withdrawn students were examined. Cause and Effect: Due to incomplete documentation and lapses in communication, the withdrawal date used in the aid calculation lacked sufficient supporting documentation and did not appear to align with other available records. Using an incorrect date could result in too little or too much Title IV being returned on the student’s behalf. Recommendation: The University should ensure that withdrawal dates are determined in accordance with the code of federal regulations and federal student aid handbook. Once the date is determined in accordance with applicable regulations, appropriate supporting documentation should be maintained to substantiate the date used. View of Responsible Officials: The finance department has begun analyzing existing data path communication within the department and across the University, identifying opportunities for improvement. In the future, the University intends to implement required student attendance reporting by professors. This step will assist in determining last day of attendance via confirmation processes by academic administrators and financial aid administrators and provide supporting documentation for reference. Adding this step is expected to override unreliable communication.