Finding 1074073 (2024-001)

Incorrect Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: There were two incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $2,861 Context: Out of 11 students, 1 student who withdrew during the audit period tested had funds returned late. This was due to the student’s calculation initially being for the full summer term instead of just one module, and the student did not complete more than 60% of the module, and therefore had not met the 49% exemption. One student’s R2T4 had been calculated based on the date the registrar had processed the paperwork for the withdrawal instead of the date of the official withdrawal or last date of attendance, whichever is later. Both students were corrected during the audit process. Cause: These were oversights by the University. Effect: Incorrect amounts of federal funding were returned. There were under-returns of Pell of $1,400 and under-returns of plus loans of $1,461. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University use the student’s last date of attendance or official withdrawal date for calculating the R2T4. We also recommend the University use the student’s original enrolled module schedules for determining the number of days in the term. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.