Finding 1130495 (2024-001)

-
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-04-04
Audit: 352724
Organization: East-West University (IL)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: The University incorrectly calculated the return of Title IV funds for one student, resulting in an excess return of $687.
  • Impacted Requirements: This finding indicates non-compliance with 34 CFR 668.22 regarding the return of Title IV funds upon student withdrawal.
  • Recommended Follow-Up: Assign specific responsibilities for reviewing Title IV calculations to ensure accurate returns in the future.

Finding Text

2024-001: Return of Title IV - Student Financial Aid Cluster - Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended August 31, 2024 Criteria: According to 34 CFR 668.22 when a recipient of Title IV grant or loan assistance withdraws from a University during a payment period or period of enrollment in which the recipient began attendance, the University must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. Condition: During our return of Title IV Fund testing we noted that University did not properly calculate or return Title IV for one student out of the five students in our sample. The University returned $687 more in Title IV funds than they were required to return. We consider this to be an instance of non-compliance relating to the Special Tests and Provisions Compliance Requirement. Statistical sampling was not performed in the selection of the sample. Questioned Costs: $0 Effect: The University did not properly calculate the return of Title IV for one student out of five resulting in the University returning $687 more than required. Cause: The University’s internal controls did not identify the fact that the incorrect amount of aid was returned to the Department of Education when calculating the return of Title IV. Recommendation: We recommend the University assign specific responsibilities to review students return of Title IV calculation to verify the correct amount is calculated. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

Categories

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

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.80M
84.268 Federal Direct Student Loans $1.69M
84.031 Higher Education_institutional Aid $616,341
84.116 Congressional Directed Grants $207,235
84.007 Federal Supplemental Educational Opportunity Grants $66,453
84.268 Federal Direct Student Loans- Plus Loans $64,630
84.033 Federal Work-Study Program $43,842
84.425 Covid-19 Governor's Emergency Education Relief Fund (geer) $2,335