Finding 1092137 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2024-12-18
Audit: 333555
Organization: Arizona Christian University (AZ)

AI Summary

  • Core Issue: The University failed to perform required R2T4 calculations for a student who withdrew, leading to improper return of funds.
  • Impacted Requirements: Compliance with 34 CFR 668.22 regarding the determination of earned and unearned Title IV aid.
  • Recommended Follow-Up: Establish a formal review process to ensure accurate and timely R2T4 calculations for all withdrawn students.

Finding Text

Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster ALN Numbers: Various Award Period: July 1, 2023 through June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations 34 CFR 668.22, states that when students withdraw from a school, institutions is required to determine earned and unearned portions of Title IV aid as of the date the student ceased attendance based on the amount of time the student spent in attendance. Up through the 60% point in each payment period or period of enrollment, a pro rate schedule is used to determine the amount of Title IV funds the students earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period. Condition: During our testing, for one out of 26 students, an R2T4 calculation was not performed even though they attended classes. All of their aid was returned; however, the student did earn a portion that was improperly returned to ED. Questioned Costs: $527.25 Context: The University did not properly calculate R2T4's or timely return funds in all cases where it should have. Cause: The University did not have proper procedures in place to correctly calculate and timely return appropriate funds. Effect: Funds were not disbursed to students as they should have been. Repeat Finding: No Recommendation: We recommend that the University implement a formal review process as it relates to withdrawn students to ensure R2T4 calculations are being performed accurately and timely. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 515690 2024-001
    Significant Deficiency Repeat
  • 515691 2024-001
    Significant Deficiency Repeat
  • 515692 2024-001
    Significant Deficiency Repeat
  • 515693 2024-001
    Significant Deficiency Repeat
  • 515694 2024-001
    Significant Deficiency Repeat
  • 515695 2024-002
    Significant Deficiency
  • 515696 2024-002
    Significant Deficiency
  • 515697 2024-002
    Significant Deficiency
  • 515698 2024-002
    Significant Deficiency
  • 515699 2024-002
    Significant Deficiency
  • 515700 2024-003
    Significant Deficiency
  • 515701 2024-003
    Significant Deficiency
  • 515702 2024-003
    Significant Deficiency
  • 515703 2024-003
    Significant Deficiency
  • 515704 2024-003
    Significant Deficiency
  • 1092132 2024-001
    Significant Deficiency Repeat
  • 1092133 2024-001
    Significant Deficiency Repeat
  • 1092134 2024-001
    Significant Deficiency Repeat
  • 1092135 2024-001
    Significant Deficiency Repeat
  • 1092136 2024-001
    Significant Deficiency Repeat
  • 1092138 2024-002
    Significant Deficiency
  • 1092139 2024-002
    Significant Deficiency
  • 1092140 2024-002
    Significant Deficiency
  • 1092141 2024-002
    Significant Deficiency
  • 1092142 2024-003
    Significant Deficiency
  • 1092143 2024-003
    Significant Deficiency
  • 1092144 2024-003
    Significant Deficiency
  • 1092145 2024-003
    Significant Deficiency
  • 1092146 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.18M
84.063 Federal Pell Grant Program $2.41M
84.031 Higher Education Institutional Aid $715,116
84.007 Federal Supplemental Educational Opportunity Grants $89,462
84.033 Federal Work-Study Program $63,408
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $29,290