Finding 1165222 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-17
Audit: 375536
Organization: Doane University (NE)

AI Summary

  • Core Issue: The University failed to have proper internal controls for Title IV refund calculations, leading to an incorrect refund amount for one student.
  • Impacted Requirements: Non-compliance with Title IV regulations requiring timely and accurate returns of unearned funds, as well as Uniform Guidance on internal controls.
  • Recommended Follow-Up: Establish and document robust controls for R2T4 calculations, including independent reviews before issuing refunds.

Finding Text

Federal Program - Federal Direct Student Loans Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable Assistance Listing Number - 84.268 Federal Award Number - P268K251776 Federal Award Year - June 30, 2025 Repeat Finding: 2024-001 Criteria: Title IV regulations (34 CFR 668.22) require the University to return the unearned portion of grants or loans to the Title IV program within 45 days after a student withdraws. The Uniform Guidance requires recipients of federal awards to administer its federal programs with an adequate system of internal controls over applicable compliance requirements. Condition/Context: During the year, there was no documented internal controls in place over the Title IV refund calculations. In the sample of 5 students that withdrew from the University, there was one student for which the return was calculated incorrectly. The result was too much aid being refunded. The sample was not a statistically valid sample. Questioned Costs: A total of $251 of subsidized direct loans for one student Cause: The University’s financial aid department has a limited number of individuals, and they experienced turnover during the year. Effect: The University returned incorrect amount to the US Department of Education. Recommendation: The University should document controls in place to ensure R2T4 calculations are complete and accurate. This should include a review of the calculations by someone other than the preparer prior to the refund being issued. Management Response: Due to staff turnover the change as noted in the FY2024 audit was not implemented. Management has now automated and implemented changes in systems controls for all Title IV refund calculations.

Corrective Action Plan

Finding 2025-001 Condition During the year, there were no documented internal controls in place over the Title IV refund calculations. In the sample of 5 students who withdrew from the University, there was one student for whom the return was miscalculated. The result was too much aid being refunded. The sample was not statistically valid. Corrective Action Plan To address this issue, the Title IV Return of Funds Policy has been updated to strengthen accountability and compliance. All R2T4 calculations will be completed by the Financial Aid Counselor and reviewed by the Director, with signatures documenting internal controls. A checklist and quarterly reviews will ensure accuracy, and ERP integration within Ellucian Colleague, set for full implementation by October 31, 2025, will automate calculations and improve compliance monitoring. Name(s) of Contact Person(s) Responsible for Corrective Action: Susan Collins, Director of Financial Aid Anticipated Completion Date: October 31, 2025 Linda Scholting CFO 10/29/2025

Categories

Student Financial Aid Subrecipient Monitoring

Other Findings in this Audit

  • 1165223 2025-002
    Material Weakness Repeat
  • 1165224 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $8.54M
84.063 FEDERAL PELL GRANT PROGRAM $1.90M
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $433,177
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $410,315
84.042 TRIO STUDENT SUPPORT SERVICES $334,267
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $165,000
84.033 FEDERAL WORK-STUDY PROGRAM $137,622
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $120,964
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $111,402
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $108,629
84.031 HIGHER EDUCATION INSTITUTIONAL AID $97,780
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $90,138
47.074 BIOLOGICAL SCIENCES $86,211
47.041 ENGINEERING $73,842
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $70,734
47.079 OFFICE OF INTERNATIONAL SCIENCE AND ENGINEERING $21,505
84.425 EDUCATION STABILIZATION FUND $11,208
15.805 ASSISTANCE TO STATE WATER RESOURCES RESEARCH INSTITUTES $8,373
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $6,434
45.162 PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT $2,812