Finding 1105900 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-24
Audit: 347460
Organization: University of Detroit Mercy (MI)

AI Summary

  • Core Issue: The University failed to return Title IV funds within the required 45-day period for a student who withdrew after starting classes.
  • Impacted Requirements: Compliance with federal regulations requiring timely return of unearned funds (34 CFR 668.22(j)(1)).
  • Recommended Follow-up: Implement controls to ensure all R2T4 returns are processed within the 45-day window to prevent future occurrences.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - U.S. Department of Education, Student Financial Assistance Cluster - ALN 84.268, Federal Direct Student Loans; ALN 84.063, Federal Pell Grant Program; ALN 84.007, Federal Supplemental Education Opportunity Grants Federal Award Identification Number and Year - P268K241658; P063P231658; P007A232092 Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.22(j)(1)). Condition - The University did not return funds within the 45 day time period for a certain student. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the nine students tested, there was one student who had an R2T4 calculation, and funds were not returned within the 45-day time period. Cause and Effect - The University did not have a control in place to ensure that all R2T4 returns were processed in the required 45-day window (or 30 days if never attended); as a result, the refund was returned late. Recommendation - The University should implement controls to ensure that student R2T4 returns are made within the 45-day window (or 30 days if never attended). Views of Responsible Officials and Corrective Action Plan - This was an isolated incident and corrected immediately. The University has taken additional steps to ensure full compliance in the future and considers the corrective action plan fully implemented.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Significant Deficiency

Other Findings in this Audit

  • 529455 2024-001
    Significant Deficiency
  • 529456 2024-001
    Significant Deficiency
  • 529457 2024-001
    Significant Deficiency
  • 529458 2024-001
    Significant Deficiency
  • 529459 2024-001
    Significant Deficiency
  • 1105897 2024-001
    Significant Deficiency
  • 1105898 2024-001
    Significant Deficiency
  • 1105899 2024-001
    Significant Deficiency
  • 1105901 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $45.42M
93.342 Health Professions Student Loans, Including Primary Care Loans and Loans for Disadvantaged Students $7.44M
84.038 Federal Perkins Loan Program_federal Capital Contributions $6.95M
84.063 Federal Pell Grant Program $5.45M
84.007 Federal Supplemental Educational Opportunity Grants $1.74M
93.264 Nurse Faculty Loan Program (nflp) $1.30M
93.364 Nursing Student Loans $1.21M
84.033 Federal Work-Study Program $733,667
93.310 Trans-Nih Research Support $347,416
84.031 Higher Education Institutional Aid $319,936
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $305,185
21.027 Coronavirus State and Local Fiscal Recovery Funds $287,180
84.042 Trio Student Support Services $216,335
93.732 Mental and Behavioral Health Education and Training Grants $135,904
93.859 Biomedical Research and Research Training $125,736
93.924 Ryan White Hiv/aids Dental Reimbursement and Community Based Dental Partnership Grants $107,998
45.161 Promotion of the Humanities Research $100,688
84.021 Overseas Programs - Group Projects Abroad $97,081
47.070 Computer and Information Science and Engineering $69,514
93.103 Food and Drug Administration Research $69,262
93.976 Primary Care Medicine and Dentistry Clinician Educator Career Development Awards $65,581
81.086 Conservation Research and Development $53,366
93.124 Nurse Anesthetist Traineeship $25,453
93.242 Mental Health Research Grants $11,351
93.113 Environmental Health $8,653
93.408 Arra - Nurse Faculty Loan Program $2,838
47.076 Stem Education (formerly Education and Human Resources) $2,127