FAC Explorer

Finding 1163452 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2025
Accepted
2025-12-04
Audit: 373043
Organization: Nebraska Wesleyan University (NE)
Auditor: BAKER TILLY US LLP

AI Summary

  • Core Issue: Incorrect calculations of Title IV refunds for students who withdrew, leading to excess funds returned to the U.S. Department of Education.
  • Impacted Requirements: Compliance with 34 CFR 668.22, which mandates timely and accurate return of unearned Title IV funds.
  • Recommended Follow-Up: Update procedures to ensure accurate academic period dates are used in R2T4 calculations, with oversight from financial aid leadership.

Finding Text

Significant Deficiency - Special Tests and Provisions: Return of Title IV Fund Calculations Program: Student Financial Assistance Cluster Assistance Listing Number: Various Federal Agency: U.S. Department of Education Federal Award Identification Number: Various Federal Award Year: May 31, 2025 Criteria: 34 CFR 668.22 requires that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student’s withdrawal date in accordance with Federal regulations and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition/Context: For two of the six students selected in the sample, the amount of the Title IV refund was calculated incorrectly due to using the incorrect number break days for students that withdrew in the Spring term. This results in too much being returned to the U.S Department of Education. The sample was not a statistically valid sample. Questioned Costs: $57 of Federal Direct Student Loans ALN 84.268. Cause: Incorrect break days were input into the R2T4 tool on U.S Department of Education's Common Origination and Disbursement website which is used to perform the R2T4 calculations. These incorrect break days were not identified and corrected in the University personnel’s review of the calculations. Effect: The University refunded $57 of Federal Direct Student loans that should not have been refunded. Recommendation: The University should review and update its procedures and controls to ensure the correct academic period dates and breaks are used for performing R2T4 calculations. Management's Response: The scheduled break days for the spring semester accidentally failed to include the weekend before the week of Spring Break. The school calendar profile for the Return of Title IV Funds Calculation will now be reviewed by both the Director of Scholarships and Financial Aid and the Assistant Director of Financial Aid before being created in the COD Return of Title IV Funds Tool each term.

Corrective Action Plan

Return of Title IV Fund Calculations Condition/Context: For two of the six students selected in the sample, the amount of the Title IV refund was calculated incorrectly due to using the incorrect number break days for students that withdrew in the Spring term. This results in too much being returned to the U.S Department of Education. Recommendation: The University should modify its procedures for refunding awards to ensure proper data computations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The scheduled break days for the spring semester accidentally failed to include the weekend before the week of Spring Break. The school calendar profile for the Return of Title IV Funds Calculation will now be reviewed by both the Director of Scholarships and Financial Aid and the Assistant Director of Financial Aid before being created in the COD Return of Title IV Funds Tool each term. Contact person: Tom Ochsner, Director of Scholarships and Financial Aid Planned completion date for corrective action plan: August 27, 2025 If the Department of Education has questions regarding this plan, please call Tom Ochsner at (402) 465- 2212.

Categories

Questioned Costs Special Tests & Provisions Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1163439 2025-003
    Material Weakness Repeat
  • 1163440 2025-002
    Material Weakness Repeat
  • 1163441 2025-003
    Material Weakness Repeat
  • 1163442 2025-002
    Material Weakness Repeat
  • 1163443 2025-002
    Material Weakness Repeat
  • 1163444 2025-003
    Material Weakness Repeat
  • 1163445 2025-002
    Material Weakness Repeat
  • 1163446 2025-003
    Material Weakness Repeat
  • 1163447 2025-002
    Material Weakness Repeat
  • 1163448 2025-003
    Material Weakness Repeat
  • 1163449 2025-002
    Material Weakness Repeat
  • 1163450 2025-003
    Material Weakness Repeat
  • 1163451 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $8.77M
84.063 FEDERAL PELL GRANT PROGRAM $3.64M
84.422 AMERICAN HISTORY AND CIVICS EDUCATION $735,471
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $163,686
84.033 FEDERAL WORK-STUDY PROGRAM $157,941
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $111,653
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $47,150
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $25,958
99.U03 Connecting Volcanos to the Plasma Environment $3,208
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $2,941
47.083 INTEGRATIVE ACTIVITIES $2,751
47.050 GEOSCIENCES $1,325
45.129 PROMOTION OF THE HUMANITIES FEDERAL/STATE PARTNERSHIP $759
99.U01 Confirming the Europa Torus $110
99.U02 Detective water on metallic M-Type Asteroids in Far-UV $87