Finding 1076772 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-09-30
Audit: 323097

AI Summary

  • Core Issue: The System incorrectly refunded Title IV funds for a student withdrawal, leading to a significant deficiency and material noncompliance.
  • Impacted Requirements: The System must calculate and return funds within 45 days of determining a student's withdrawal date, as per federal regulations.
  • Recommended Follow-Up: Implement controls for accurate and timely refunds, including an independent review process to ensure compliance with refund calculations.

Finding Text

Finding Type: Assistance Listing, Federal Agency, and Program Name: Student Financial Assistance Cluster, U.S Department of Education: 84.063 - Federal Pell Grant Program 84.007- Federal Suppemental Education Opportunity Grants 84.268- Federal Direct Student Loans Federal Award Identification Number and Year - N/A Pass-through Entity - N/A Finding Type - Significant deficiency and material noncompliance with laws and regulations Repeat Finding – No Criteria - The System has 45 days from the date the System determines a student’s withdrawal date to calculate a return to Title IV refund calculation for the student and return the funds. Withdrawal dates are defined as the time when the student officially withdraws or expresses notification to withdraw or, if the student does not officially withdraw, the date that the System determines the student is no longer in attendance (34 CFR Section 668.22). Condition - For one student that required the return of Title IV funds, the System failed to refund the correct amount of funds. The calculation of funds to be returned was correct but the amount of funds originally refunded did not match the calculation. The amount of FSEOG funds "earned" was sent back instead of the amount meant to be returned. Questioned Costs - $24 Identification of How Questioned Costs Were Computed - Amount not properly refunded. Context - For one student who withdrew during the year, an improper amount was refunded. When identified in June 2024, the System refunded the additional $24. Cause and Effect - The System failed to review refund calculations and ensure the proper amount was refunded with the required time frame, which resulted in the System making an incorrect refund. Recommendation- The System should implement controls to ensure the proper amount ia refunded in a timely manner. They should also implement a process to ensure an independent review of the return submission to confirm refunds are properly processed. Views of Responsible Officials and Corrective Action Plan - The System returned the remainder of funds required. Firelands Regional Medical Center School of Nursing has implemented the following control to prevent this error in the future. The Financial Coordinator will submit a copy of the Return of Title IV funds report to the business office when returning funds. The business office will use this report to make sure the appropriate amount is posted to the student's account.

Categories

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 500330 2023-002
    Significant Deficiency
  • 500331 2023-002
    Significant Deficiency
  • 500332 2023-002
    Significant Deficiency
  • 1076773 2023-002
    Significant Deficiency
  • 1076774 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.958 Block Grants for Community Mental Health Services $591,045
93.364 Nursing Student Loans $384,504
84.268 Federal Direct Student Loans $292,272
93.667 Social Services Block Grant $183,804
84.063 Federal Pell Grant Program $130,292
84.425 Covid 19 Education Stabilization Fund $121,220
93.959 Block Grants for Prevention and Treatment of Substance Abuse $106,504
93.788 Opioid Str $28,852
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $25,917
84.007 Federal Supplemental Educational Opportunity Grants $14,757
84.038 Perkins Loan Program $2,310