Finding 1164990 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-16
Audit: 375093
Organization: Donnelly College (KS)

AI Summary

  • Core Issue: The College failed to refund federal grant funds to a student's account within the required 45 days after withdrawal, completing the disbursement 151 days late.
  • Impacted Requirements: This violation relates to the Return of Title IV Funds regulation, which mandates timely disbursement of funds for outstanding tuition and fees.
  • Recommended Follow-Up: Implement an automated control system to ensure compliance with refund timelines for federal aid, and review procedures for assessing eligibility for post-withdrawal disbursements.

Finding Text

Student Financial Assistance Cluster U.S. Department of Education Federal Direct Student Loans 84.268 Federal Pell Grant Program 84.063 Award Year 2025 Criteria or Specific Requirement - Return of Title IV Funds. According to 34 CFR 668.22(a)(6(ii)(B)(1), the institution shall require post withdrawal disbursements of grant funds may be credited to the student's account, without the student's authorization, for any outstanding charges for tuition and fees on the student's account, up to the amount of those outstanding changes. Any grant funds not disbursed to the student's account must be disbursed to the student no later than 45 days after the date of the institution's determination that the student withdrew. Condition - The College did not reimburse the student's account within the required 45 days from the date of determination of student withdraw. The College completed the disbursement to the student's account 151 days after the student withdrew from classes. Cause - Lack of review and oversight when refund information is completed.Effect - The information included into the refunds worksheet was completely timely. The federal funds were disbursed after the required refund period. Questioned Costs - None.Context - Out of a population of 24 students selected for refund, a sample of four students was selected for testing. Out of these four students selected for testing, there was one instance in which the federal funds were refunded after the proper period of the student refund. The sample was not, and was not intended to be, a statistically valid sample. Identification as a Repeat Finding - NoneRecommendation - The College should implement an automated control to ensure that federal aid be refunded during the proper period. Views of Responsible Officials and Planned Corrective Actions - The College has procedures in place that are supposed to prevent the delay of students refunds. This was an unusual circumstance where the student was withdrawn form the college before they were awarded any federal aid. Therefore, the college put in place procedures to review the eligibility for federal aid of any student who withdraws to determine whether a post withdraws to determine whether post withdrawal disbursement is appropriate.

Corrective Action Plan

Contact Person: Ron Dempsey, Controller Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. This was an unusual circumstance where a student was withdrawn from the college before they were awarded any federal aid. The director has put in place procedures to review the eligibility for federal aid of any student who withdraws to determine whether a post withdrawal disbursement is appropriate. Anticipated Completion Date: January 1, 2026

Categories

Student Financial Aid Internal Control / Segregation of Duties Eligibility

Other Findings in this Audit

  • 1164988 2025-001
    Material Weakness Repeat
  • 1164989 2025-002
    Material Weakness Repeat
  • 1164991 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.031 HIGHER EDUCATION INSTITUTIONAL AID $2.00M
84.063 FEDERAL PELL GRANT PROGRAM $1.30M
84.268 FEDERAL DIRECT STUDENT LOANS $1.12M
45.130 PROMOTION OF THE HUMANITIES CHALLENGE GRANTS $370,000
84.042 TRIO STUDENT SUPPORT SERVICES $360,000
21.027 COVID - 19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $77,732
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $62,636
84.033 FEDERAL WORK-STUDY PROGRAM $52,424
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $30,993
84.425 COVID -19 EDUCATION STABILIZATION FUND - MINORITY SERVING INSTITUTIONS $28,012