Finding 1171145 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-30
Audit: 384564
Organization: North Central University (MN)

AI Summary

  • Core Issue: The University incorrectly calculated the amount of Title IV aid earned, leading to an over-return of funds to the Department of Education.
  • Impacted Requirements: Compliance with federal regulations on the return of Title IV funds when a student withdraws, specifically 34 CFR Sections 668.22(a)(1)-(3).
  • Recommended Follow-Up: Implement secondary reviews of calculations and inputs to ensure accuracy in future return of funds assessments.

Finding Text

Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work-Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year – June 1, 2024 – May 31, 2025 Criteria or Specific Requirement – Special Tests - Return of Funds – When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment 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 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 as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment (34 CFR Sections 668.22(a)(1)-(3)). Condition – The earned percentage, based upon the enrollment period determined and the amount of aid to return, was calculated incorrectly. The University over-returned funds to the Department of Education because of the error in the calculation. Questioned Costs – $11, CFDA 84.268 Context – Of a sample of four return of funds tested from a population of ten performed during the examination period, one calculation was not performed correctly. Our sample was not, and was not intended to be, statistically valid. Cause – The enrollment period was calculated incorrectly. Effect – The University returned the incorrect amount of funds to the Department of Education. Identification as a Repeat Finding – No Recommendation – We recommend the University be diligent in performing secondary reviews to ensure the calculations are performed correctly along with review of inputs into the system to ensure the proper number of days are included in each term. Views of Responsible Officials and Planned Corrective Action – There is no disagreement with the audit finding. There will be review of the return of funds calculation.

Corrective Action Plan

There is no disagreement with the audit finding. There will be review of the return of funds calculation. Funds have been corrected for the error in calculation. Additional quality checks on the academic calendar have been put into to place to ensure accuracy.

Categories

Student Financial Aid

Other Findings in this Audit

  • 1171140 2025-001
    Material Weakness Repeat
  • 1171141 2025-001
    Material Weakness Repeat
  • 1171142 2025-002
    Material Weakness Repeat
  • 1171143 2025-002
    Material Weakness Repeat
  • 1171144 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $4.34M
84.063 FEDERAL PELL GRANT PROGRAM $2.46M
84.038 Federal Perkins Loan Program $431,889
84.033 FEDERAL WORK-STUDY PROGRAM $114,842
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $72,085