Finding 1113905 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-26
Audit: 348677
Organization: Fontbonne University (MO)
Auditor: Rubinbrown LLP

AI Summary

  • Core Issue: The University miscalculated scheduled breaks in the R2T4 calculations, leading to incorrect Pell grant returns.
  • Impacted Requirements: Compliance with FSA Handbook guidelines on excluding breaks longer than 5 days from the R2T4 calculation.
  • Recommended Follow-Up: Correct the Spring 2024 calculations, issue additional Pell grants to affected students, and ensure accurate break calculations for the 2024-2025 academic year.

Finding Text

Finding 2024-002 - Significant Deficiency, Compliance Federal Assistance Listing Number. 84.063, 84.268 U.S. Department Of Education Student Financial Aid Cluster – Special Tests And Provisions – R2T4 Criteria: According to Chapter 2 of Volume 5 of the 2023-2024 Federal Student Aid (FSA) Handbook scheduled breaks of more than 5 days are required to be excluded from the length of the term for purposes of the Return to Title IV (R2T4) calculation. Further, where classes end on a Friday and do not resume until Monday following a one-week break, both weekends (four days) and the five weekdays would be excluded from the R2T4 calculation, for a total of nine days. Condition: In our nonstatistical sample of 5 R2T4 calculations completed in the year ended June 30, 2024, we identified one instance where the University improperly calculated the number of days in the Spring 2024 semester used in the denominator of the percentage of aid earned calculation. Context: We noted for the one student that the University used 10 days of scheduled breaks (5 for Spring Break and 5 for Easter Break) which excluded the weekend dates surrounding the week of Spring Break. The University should have included the weekend dates prior to the week of Spring Break and after the week of Spring Break resulting in 14 days of scheduled breaks used in the denominator of the calculation. Effect: As a result of the miscalculation the school was required to return $104 more of the student’s Pell grant than should have been required. There was only one other Spring 2024 R2T4 calculation completed which would have resulted in the additional student earning $2 more in Pell grant than the University calculated. Questioned Costs: There were no questioned costs as the University returned more funding than required. Cause: The University did not have a properly designed internal control structure to ensure the academic calendar was established to properly account for the scheduled breaks for purposes of determining the denominator in the earned aid calculation. Identification Of Repeat Finding: This is not a repeat finding. Recommendation: The University should correct the two Spring 2024 RT24 calculations and disburse to the students the additional Pell grant funds that the students earned. The University should correct its calculation for Spring Break for the 2024-2025 academic year. Views Of Responsible Officials (Unaudited): The University concurs with the finding. The University has corrected the two Spring 2024 RT24 calculations and initiated additional Pell grant disbursements to the noted students. The University has updated its calculations of the scheduled breaks for the 2024-2025 academic year. Completion Date: August 2024 Contact Person: Megan Morton, Director of Financial Services

Categories

Student Financial Aid Special Tests & Provisions Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 537461 2024-002
    Significant Deficiency
  • 537462 2024-003
    Significant Deficiency
  • 537463 2024-002
    Significant Deficiency
  • 537464 2024-003
    Significant Deficiency
  • 1113903 2024-002
    Significant Deficiency
  • 1113904 2024-003
    Significant Deficiency
  • 1113906 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.94M
84.063 Federal Pell Grant Program $1.90M
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $493,388
84.038 Federal Perkins Loan Program_federal Capital Contributions $219,145
21.027 Coronavirus State and Local Fiscal Recovery Funds $121,029
84.033 Federal Work-Study Program $75,000
84.007 Federal Supplemental Educational Opportunity Grants $69,991
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $32,062