Finding 1080862 (2024-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-11-01
Audit: 326979
Organization: Missouri Baptist University (MO)

AI Summary

  • Core Issue: The University failed to return Title IV funds to the Department of Education and student accounts on time for withdrawn students.
  • Impacted Requirements: Federal regulations require returns within 45 days of withdrawal notification and 30 days for students who never attended.
  • Recommended Follow-Up: Evaluate and improve internal controls for monitoring Title IV fund returns to ensure timely compliance.

Finding Text

Information on the Federal Program: Student Financial Assistance Cluster, Assistance Listing Number 84.268 Federal Direct Student Loans, Assistance Listing Number 84.063 Federal Pell Grant Program, Assistance Listing Number 84.007 Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.379 Teacher Education Assistance for College and Higher Education Grants, U.S. Department of Education Program Year 2023-2024 Criteria or Specific Requirement: Special Tests and Provisions - Return of Title IV Funds Condition: Federal regulations provide that the University is responsible for returning funds to ED and student accounts within 45 days of the University becoming aware the student has withdrawn, or within 30 days for students that never began attendance. The University’s internal control system did not prevent certain late disbursements of return of funds. Questioned Costs: None Context: Out of a population of 40 withdrawn students requiring return of Title IV funds, a sample of 5 withdrawn students were selected for testing. All 5 of the returns were not returned to ED or the student within the 45 day period. Additionally, 1 of the 5 returns was over-refunded for Federal Direct Student Loans by $500. Lastly, 1 of the 5 returns had an additional $1,849 of Federal Pell Grant funding not returned to ED or the student in a timely manner. Our sample was not and was not intended to be statistically valid. Effect: The University may not be able to timely detect when return of funds are required for students who have withdrawn or never began attendance. This could result in late disbursements to ED and the student accounts for Direct Loan and Pell recipients. Cause: The University's processes did not ensure return of Title IV funds were completed accurately and timely. Identification as a Repeat Finding, if Applicable: Not Applicable Recommendation: We recommend the University evaluate controls around monitoring return of Title IV funds to determine changes, either on the electronic processes or review processes that should be made to properly capture return of Title IV funds on a timely basis. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding and recommendation. See further information on the corrective action plan provided by management.

Categories

Student Financial Aid Subrecipient Monitoring Matching / Level of Effort / Earmarking Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 504417 2024-001
    Material Weakness
  • 504418 2024-001
    Material Weakness
  • 504419 2024-001
    Material Weakness
  • 504420 2024-001
    Material Weakness
  • 504421 2024-002
    Significant Deficiency Repeat
  • 504422 2024-002
    Significant Deficiency Repeat
  • 1080859 2024-001
    Material Weakness
  • 1080860 2024-001
    Material Weakness
  • 1080861 2024-001
    Material Weakness
  • 1080863 2024-002
    Significant Deficiency Repeat
  • 1080864 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $16.81M
84.063 Federal Pell Grant Program $3.02M
84.033 Federal Work-Study Program $172,869
84.007 Federal Supplemental Educational Opportunity Grants $165,000
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $120,229