Audit 392254

Finding: 2025-001 – Special Tests and Provisions – Return of Title IV Funding (R2T4) and Enrollment Reporting: Significant Deficiency in Internal Control over Compliance (See Finding 2025-001 for included table) Criteria: When a recipient of Title IV loan assistance withdraws from the University during a payment period or period of enrollment in which the recipient began attendance, the University must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. The regulations (34 CFR 668.22(j)(1)) provide that an institution must return the amount of title IV funds for which it is responsible under paragraph as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew. In addition, the National Student Loan Data System (NSLDS) is the Department of Education’s centralized database for students’ enrollment information. It is the University’s responsibility to update this information timely and accurately when the enrollment status of a student that has received federal loans changes. Unless the University expects to complete its next roster file within 60 days, the University must notify the secretary within 30 days, if it discovers that a student who received a loan under Title IV of the Act either did not enroll or ceased to be enrolled on at least a half-time basis (34 CFR section 685.309). Condition/context: We selected a sample of 12 students out of a population of 41 that were identified by the University as having received some federal assistance and withdrew from the University during the year under audit. We believe this to be a representative sample of the population. Effect or potential effect: We found exception with two students whose title IV funds were returned more than 100 days after it was determined that the student had withdrew and whose status of withdrawal was communicated to NSLDS. Cause: Academic departments who approved a leave of absence or dismissal resulting in a change to enrollment was not timely reported to the University registrar and financial aid office resulting in respective delays to the return of title IV funds and enrollment status updates. Recommendation: We recommend that the University provide more training and guidance on the importance of timely communication of changes in enrollment status to the registrar and financial aid to ensure compliance with these reporting requirements. Repeat finding: Not a repeat finding. Views of responsible officials: Management agrees with the finding. A corrective action plan has been created by management.