Finding Text
Federal Program: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.063 (Pell) and 84.268 (Direct Loans) Federal Agency: Department of Education Award Year: 2024 Criteria: In our initial testing of the completeness of the withdraw population, we identified missing students. As a result, management performed further completeness procedures and identified 11 instances of missing R2T4 calculations. In total, the University calculated $31,830 of Direct Loans and $3,499 of Pell Grant funding as amounts to be returned. Management corrected these; however, they were returned outside the required 45 day timeframe. Condition: In testing the completeness of the withdraw population, we identified 11 instances of missing R2T4 calculations, resulting in late R2T4 returns. In total, the University calculated $31,830 of Direct Loans and $3,499 of Pell Grant funding as amounts to be returned; however, these amounts were not returned within the required 45 day timeframe. Additionally, in a sample of 5 R2T4 recalculations, 3 used incorrect semester dates and/or aid amounts, resulting in: • One student over-returning $75 of loans; • One student under-returning $75 of loans; and • One student with no net impact because the student attended the majority of the semester (the misdated inputs did not change the proration outcome). Cause: The University did not have adequate internal controls or monitoring procedures in place to ensure proper calculations and timely returns for R2T4 funds. Context: Controls did not operate properly for the University to properly calculate R2T4 returns and return aid timely. Effect: Noncompliance with the R2T4 timing requirement increases the risk of ED findings, potential liabilities, and interest assessments for late returns. Additionally, inaccurate R2T4 calculations lead to improper amounts returned on behalf of students and ED. Questioned Costs: $31,830 of Direct Loans and $3,499 of Pell Grant Repeat Finding: Yes Recommendations: The University should implement and document an overall quality assurance process including adequate controls to prevent overall noncompliance. Management's Response: Management agrees with the finding. See corrective action plan.