Finding 1169711 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-20
Audit: 382734
Organization: Oklahoma Water Resources Board (OK)

AI Summary

  • Core Issue: The University miscalculated the return of Title IV funds, leading to students receiving less aid than they earned.
  • Impacted Requirements: Non-compliance with 34 CFR 668.22 and 34 CFR 668.173(b) regarding timely return of unearned aid.
  • Recommended Follow-up: Implement controls to ensure accurate calculations and timely returns of Title IV funds.

Finding Text

Federal Program – Student Financial Assistance Cluster – Assistance Listing No.’s 84.063 Federal Pell Grant Program and 84.268 Federal Direct Student Loans – U.S. Department of Education Program Year 2024–2025 Criteria or Specific Requirement – Return of Title IV Funds – 34 CFR 668.22 and 34 CFR 668.173(b). Condition – The University is responsible for calculating and determining the amount of Title IV aid earned by a student when they withdraw from the institution during a payment period and identifying if a post-withdrawal disbursement is applicable. The University is responsible for returning any unearned aid within the required time frame outlined by 34 CFR 668.173(b). Questioned Costs – N/A Context – Out of a sample of 22 students, seven had an incorrect R2T4 calculation due to the calculation not including the correct number of days for a consecutive break. Of these seven students, two individuals were eligible for a post-withdrawal disbursement which they did not receive. Additionally, two students out of the sample did not have their return of funds returned within the 45-day time frame. Our sample was not, and was not intended to be, statistically valid. Effect – The University incorrectly calculated the return of Title IV funds which resulted in the University returning more funds than was required for these students. As such, each student received less aid than the amount they earned during the semester. Additionally, Title IV funds were not returned within the 45-day time frame which caused the University to not be in compliance with requirements outlined in 34 CFR 668.173(b). Cause – In setting up the return of Title IV fund calculations at the start of the semester, the University included the wrong number of days for a consecutive break. The University did not have appropriate controls in place to ensure Title IV funds were returned within the required time frame. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The University should establish controls designed to support accurate review of Title IV fund calculations and timely return of funds within the required time frame. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See Corrective Action Plan for additional information.

Corrective Action Plan

2025-001 Federal Program - Student Financial Assistance Cluster - Assistance Listing Nos. 84.063, Federal Pell Grant Program and 84.268 Federal Direct Student Loans U.S. Department of Education Program Year 2024-2025 - Return of Title IV Funds Finding Summary: The University is responsible for calculating and determining the amount ofTitle IV aid earned by a student when they withdraw from the institution during a payment period and identifying if a post-withdrawal disbursement is applicable. The University is responsible for returning any unearned aid within the required time frame outlined by 34 CFR 668.173(b). Recommendation: The University should establish controls designed to support accurate review of Title IV fund calculation and timely return of funds within the required time frame. Action taken in response to finding: The Office of Financial Aid has established a procedure when the dates are being set for the award year, the term's start date, end date, and consecutive break periods will be submitted to the Provost and Vice President for Academic Affairs for review and approval. A copy of the reviewed and approved dates will be retained within Financial Aid. The Office of Financial Aid also established, internally, an electronic tracking list for Return to Title IV, which will capture post withdrawal offers. Within the list the date of the student's notification is noted, along with the due date of post withdrawal loan acceptance offers. Finally, the Office of Financial Aid established, internally, an electronic tracking list for officially and unofficially withdrawn students. All students reported to the Financial Aid Office as withdrawn are placed on this list to track their progress form initial reporting to Financial Aid, date assigned to the counselor, receipt of R2T4 calculation or date of determination that the calculation is not required in the case of the students not using Title IV awards, reporting date to Common Organization & Disbursement (if applicable), and reporting date of adjustments sent to Bursar Office. Name(s) of the contact person(s) responsible for corrective action: Jason Reavis Planned completion date for corrective action plan: January 1, 2026

Categories

Student Financial Aid

Other Findings in this Audit

  • 1169709 2025-001
    Material Weakness Repeat
  • 1169710 2025-002
    Material Weakness Repeat
  • 1169712 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $8.38M
84.268 FEDERAL DIRECT STUDENT LOANS $8.32M
84.066 TRIO EDUCATIONAL OPPORTUNITY CENTERS $664,149
84.044 TRIO TALENT SEARCH $289,727
84.042 TRIO STUDENT SUPPORT SERVICES $276,041
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $218,658
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $206,657
84.033 FEDERAL WORK-STUDY PROGRAM $195,642
84.425 EDUCATION STABILIZATION FUND $172,790
93.788 OPIOID STR $80,105
15.615 COOPERATIVE ENDANGERED SPECIES CONSERVATION FUND $59,977
81.049 OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM $42,993
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $42,125
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $24,416
84.334 GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE PROGRAMS $10,480
47.083 INTEGRATIVE ACTIVITIES $4,105