Finding Text
Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, ALN 84.007; Federal Work-Study Program, ALN 84.033 Federal Pell Grant Program, ALN 84.063 Federal Direct Student Loans, ALN 84.268 Teacher Education Assistance for College and Higher Education Grants, ALN 84.379 U.S. Department of Education Program Year 2024-2025 Criteria or specific requirement – Special Tests and Provisions – Return of Title IV Funds (34 CFR 668.22(a)(1) through (a)(5) Condition – The University’s internal controls did not ensure the amounts to be returned to the U.S. Department of Education were correct and notification of a post-withdrawal disbursement could not be located. Questioned costs - $0 Context – Out of the population of 122 students who withdrew, 23 were selected for testing. Our sampling method was not, and was not intended to be, statistically valid. The R2T4 calculations for 6 students in the sample were correct, but the amount returned to COD was based on the net loan amount rather than the gross amount. The University returned more funds to the COD than was required. Additionally, one student was eligible for a post-withdrawal disbursement, but documentation that the student had been notified was not able to be obtained. Effect – The amount originally returned was incorrect. Cause – The University’s internal controls did not ensure proper inputting of information to return funds. Identification as a repeat finding, if applicable – 2024-001 and 2023-001 Recommendation – The University should update their controls to ensure the R2T4 inputs for the return of funds are correct. Views of responsible officials and planned corrective actions – The University concurs that errors occurred in posting the loan amount to be returned for six (6) Return of Title IV (R2T4) transactions identified during the audit review resulting in a total return of funds for the six (6) students which was $757.56 more than required. Specifically, the actual calculations were completed accurately, but each student’s loan amount was adjusted for loan origination fees when they should not have been adjusted. All updates to records were made for those that required updating. The University also acknowledges that documentation for one student that was required for a post-withdrawal disbursement notification cannot be located. Although the calculation and determination were completed, the supporting documentation of that notification was not properly retained in the student’s record.