Finding 1168923 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-13
Audit: 381395
Auditor: SIKICH CPA LLC

AI Summary

  • Core Issue: Two refunds were not paid for students who dropped out, indicating non-compliance with federal regulations.
  • Impacted Requirements: Refunds must be processed within 45 days of student withdrawal, as per federal guidelines.
  • Recommended Follow-Up: The Institution should refund the remaining $3,134 and improve controls in the financial aid department to prevent future oversights.

Finding Text

FINDING 2025-002: UNPAID REFUNDS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM AND FEDERAL DIRECT LOAN PROGRAM ALN: 84.063 & 84.268 FEDERAL AWARD YEAR: 2024-2025 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Condition: We tested twenty-two drop students and noted two unpaid refunds. We consider this finding to bean instance of non-compliance. Effect: The result is the Institution is retaining monies which need to be returned to the Department of Criteria: Refunds, if necessary, must be calculated and made within 45 calendar days of the date the student withdraws (34 CFR 668.22, 685.306). Cause: The condition was caused by oversights in the financial aid department. Question Costs: $5,808 Statistical sampling was not used when making sample selections. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan. Recommendation: As $2,674 has since been refunded to the Department of Educaiton, we recommend the Institution refund the $3,134 to the Department of Education and increase controls over paying refunds.

Corrective Action Plan

Finding 2025-002: Unpaid Refunds – the auditor tested twenty-two drop students and noted two unpaid refunds. It is recommended that the Institution refund the $5,808 to the Department of Education and increase controls over paying refunds Comments on Finding and Recommendation(s): Happened during transitional phase of banking and employees and should be seen as an one off situation. Actions Taken or Planned: All banking accounts have been reconciled and refunds have been settled. We have secured more qualified accounting representatives to ensure timeliness going forward.

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1168920 2025-002
    Material Weakness Repeat
  • 1168921 2025-003
    Material Weakness Repeat
  • 1168922 2025-001
    Material Weakness Repeat
  • 1168924 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $1.62M
84.063 FEDERAL PELL GRANT PROGRAM $1.05M