Finding 1168883 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-13
Audit: 381256
Organization: Friends University (KS)

AI Summary

  • Core Issue: The University failed to calculate and return Title IV funds within the required 45 days for a student who withdrew, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR section 668.22 regarding the timely return of Title IV funds for students who withdraw.
  • Recommended Follow-Up: Implement measures to ensure accurate data for refund calculations and enhance oversight to meet federal deadlines.

Finding Text

U.S. Department of Education Student Financial Assistance Cluster Assistance Listing No. 84.268 - Federal Direct Student Loans Assistance Listing No. 84.063 - Federal Pell Grant Program Assistance Listing No. 84.007 - Federal Supplemental Educational Opportunity Grants Assistance Listing No. 84.033 - Federal Work-Study Program Assistance Listing No. 84.038 - Federal Perkins Loan Program Assistance Listing No. 84.379 - Teacher Education Assistance for College and Higher Education Grants Program Year 2025 Criteria or Specific Requirement – Special Tests and Provisions - Return of Title IV Funds (34 CFR section 668.22) - 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 aid earned by the student as of the student’s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs within 45 days and no additional disbursements may be made to the student for the payment period or period of enrollment. Condition – The University did not initially calculate the return of Title IV funds in accordance with federal regulations. Upon further internal review, the calculations were corrected, but not within the 45 day requirement. Questioned Costs – None Context – Out of a population of 45 students who received federal aid and withdrew during the year ended June 30, 2025, we selected a sample of five students that received federal aid. We noted the return of Title IV funds was not made within 45 days for one of the students who withdrew during an eight week module, which was not in accordance with federal regulations. The sample was not, and was not intended to be, a statistically valid sample. Effect – Refunds were not remitted timely for students who withdrew during the year. (continued) Cause – Inaccurate information was included in the Federal Student Financial Aid refund calculations. This error was identified internally by the University during the year and corrected, but it was identified outside the 45 day requirement. Identification as a Repeat Finding – Yes, 2024-001 Recommendation – The University should take appropriate action to ensure information used to support student refund calculations is accurate and ensure proper oversight is performed timely. Views of Responsible Officials and Planned Corrective Actions – Management concurs with the findings and recommendations. See separate report for planned corrective actions.

Corrective Action Plan

Friends University Year Ended June 30, 2025 Corrective Action Plan Finding Reference Number – 2025-001 Criteria or Specific Requirement – Special Tests and Provisions - Return of Title IV Funds (34 CFR section 668.22) (Reference number 2025-001) Recommendation – The University should take appropriate action to ensure information used to support student refund calculations is accurate and ensure proper oversight is performed timely. Views of Responsible Officials and Corrective Action Plan – Management concurs with the findings and recommendation. Responsible personnel will review calculations as they are completed. Individuals Responsible – Amy Stoltzfus, Director, Office of Financial Aid Anticipated Completion Date – Already implemented

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1168878 2025-001
    Material Weakness Repeat
  • 1168879 2025-001
    Material Weakness Repeat
  • 1168880 2025-001
    Material Weakness Repeat
  • 1168881 2025-001
    Material Weakness Repeat
  • 1168882 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $9.79M
84.063 FEDERAL PELL GRANT PROGRAM $2.96M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $401,490
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $268,838
84.033 FEDERAL WORK-STUDY PROGRAM $214,923
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $118,111
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $9,430