Finding 11356 (2023-001)

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Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-02
Audit: 15259
Organization: Campbell University (NC)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: One out of ten students who withdrew did not have their Title IV funds returned within the required 45 days.
  • Impacted Requirements: Compliance with CRF Section 668.22 regarding the timely return of Title IV funds for withdrawn students.
  • Recommended Follow-Up: Improve procedures to ensure timely returns of funds and enhance communication across departments regarding student withdrawals.

Finding Text

FINDING 2023-001 FEDERAL PROGRAM INFORMATION: STUDENT FINANCIAL ASSISTANCE CLUSTER (ALN: Various) CRITERIA OR SPECIFIC REQUIREMENT (INCLUDING STATUTORY, REGULATORY OR OTHER CITATION): N. SPECIAL TESTS - RETURN OF TITLE IV FUNDS: PER CRF SECTION 668.22, WHEN RECIPIENTS OF TITLE IV FUNDS WITHDRAW, THE INSTITUTION MUST DETERMINE THE AMOUNT OF TITLE IV AID EARNED BY THE STUDENT AS OF THE STUDENT'S WITHDRAWAL DATE. IF THE TOTAL AMOUNT OF TITLE IV ASSISTANCE EARNED BY THE STUDENT IS LESS THAN THE AMOUNT THAT WAS DISBURSED TO THE STUDENT OR ON HIS OR HER BEHALF AS OF THE DATE OF THE INSTITUTION'S DETERMINATION THAT THE STUDENT WITHDREW, THE DIFFERENCE MUST BE RETURNED TO THE TITLE IV PROGRAMS WITHIN 45 DAYS. CONDITION: DURING OUR TESTING OF TITLE IV RETURNS, WE NOTED THE FOLLOWING EXCEPTION. FOR 1 OF THE 10 SELECTED STUDENTS THAT WITHDREW DURING FISCAL YEAR 2023, RETURNS WERE NOT RETURNED TO THE DEPARTMENT OF EDUCATION WITHIN THE REQUIRED 45 DAY TIMEFRAME. CAUSE: ADMINISTRATIVE OVERSIGHT WITH RESPECT TO RETURN OF TITLE IV FUNDS REQUIREMENTS. EFFECT OR POTENTIAL EFFECT: THE UNIVERSITY IS NOT PROPERLY FOLLOWING ITS POLICIES AND PROCEDURES IN PLACE TO ENSURE THAT COMPLIANCE IS MAINTAINED WITH ALL ASPECTS OF THE RETURN OF TITLE IV FUNDS REQUIREMENTS. QUESTIONED COSTS: NONE. CONTEXT: WE TESTED A SAMPLE OF 10 STUDENTS AND FOUND 1 EXCEPTION AS NOTED IN THE CONDITION. THIS IS A CONDITION IDENTIFIED PER REVIEW OF THE UNIVERSITY'S COMPLIANCE WITH SPECIFIED REQUIREMENTS USING A STATISTICALLY VALID SAMPLE. REPEAT FINDING: THERE WAS NO SIMILAR FINDING FOR THE PRIOR YEAR. RECOMMENDATION: WE RECOMMEND THAT THE UNIVERSITY ENHANCE PROCEDURES TO ENSURE THAT ALL FUNDS REQUIRED TO BE RETURNED FOR STUDENTS THAT HAVE WITHDRAWN ARE RETURNED TIMELY. VIEWS OF RESPONSIBLE OFFICIALS: THE UNIVERSITY CURRENTLY USES AN AUTOMATED WITHDRAWAL PROCESS FOR MAIN-CAMPUS UNDERGRADUATE STUDENTS. TO REMAIN COMPLIANT WITH RETURN OF TITLE IV REGULATIONS, THE OFFICE OF FINANCIAL AID WILL ENGAGE WITH ALL ACADEMIC LEVELS AND DEPARTMENTS ON CAMPUS AND ENCOURAGE THE USE OF THE AUTOMATED WITHDRAWAL PROCESS. THIS WILL ENSURE THE OFFICE OF FINANCIAL AID IS MADE AWARE WHEN A STUDENT IS NO LONGER ATTENDING THE UNIVERSITY AND CAN PROCESS THE R2T4 WITHIN REQUIRED TIMELINES.

Categories

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

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $103.76M
10.766 Community Facilities Loans and Grants $59.46M
84.063 Federal Pell Grant Program $5.41M
84.007 Federal Supplemental Educational Opportunity Grants $457,505
93.884 Grants for Primary Care Training and Enhancement $439,030
84.425 Education Stabilization Fund $283,208
84.033 Federal Work-Study Program $262,500
93.859 Biomedical Research and Research Training $168,896
93.113 Environmental Health $146,365
93.837 Cardiovascular Diseases Research $52,709
47.076 Education and Human Resources $42,692
47.041 Engineering $35,117
10.351 Rural Business Development Grant $32,761
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $20,274
45.310 Grants to States $15,000
93.866 Aging Research $11,936
21.019 Coronavirus Relief Fund $6,431
43.008 Education $5,000
59.037 Small Business Development Centers $3,082
84.038 Federal Perkins Loans Program $0