Finding 1096155 (2024-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-19
Audit: 338814
Organization: Southwestern College (KS)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The College did not return unearned Title IV funds on time for several students, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 668.22 regarding timely returns of Title IV funds.
  • Recommended Follow-Up: Improve internal review processes and enhance communication with the registrar's office to ensure timely returns.

Finding Text

Untimely Returns of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 14 students tested for timely and accurate R2T4’s, 1 student had their unearned Title IV aid totaling $390 returned 23 days late. The College reviewed all student withdrawals and identified 5 other students with late returns totaling to the amount of $12,199 ranging from 5 to 62 days late. Cause: Even though the initial calculations were performed timely, the financial aid office’s internal review process and adjustment of the student account was late for 4 students. There was a lack of communication from the registrar's office for 1 student, but once the financial aid office discovered this student, the return was promptly calculated and made. 1 student had a calculation performed late due to an employee transition in the financial aid office. Effect: Noncompliance with R2T4 regulations regarding timely returns and withdrawals. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the College works to reduce the time between a student's initial R2T4 calculation and its internal review in the financial aid office. We also recommend the College continue to work with the registrar's office to provide timely notification of student withdrawals so that the return of Title IV funds can be complete within the timeframe required by the Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 519712 2024-003
    Significant Deficiency
  • 519713 2024-003
    Significant Deficiency
  • 1096154 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $11.66M
84.268 Federal Direct Student Loans $6.31M
84.063 Federal Pell Grant Program $2.41M
84.038 Federal Perkins Loan Program $941,871
84.007 Federal Supplemental Educational Opportunity Grants $120,186
84.033 Federal Work-Study Program $86,573
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $25,632
10.558 Child and Adult Care Food Program $8,067