Finding Text
Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster ALN Numbers: Various Award Period: July 1, 2024 through June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations 34 CFR 668.22, states that when students withdraw from a school, institutions are required to determine earned and unearned portions of Title IV aid as of the date the student ceased attendance based on the amount of time the student spent in attendance. Up through the 60% point in each payment period or period of enrollment, a pro rate schedule is used to determine the amount of Title IV funds the students earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period. Condition: During our testing we noted that following errors in R2T4 reporting: • 1 out of 22 students tested had the wrong withdrawal date used in calculating their R2T4. This resulted in the student having three extra completed days of the term in their R2T4 calculation leading to ACU not returning enough PELL back to the Department of Education in the amount of $38.12. • 1 out of 22 students tested did not have enough days included for their scheduled break in their R2T4 calculation. ACU had this students withdrawal date be in the middle of spring break instead of the last date of attendance. This resulted in ACU returning too much Subsidized loan funds back to the Department of Education in the amount of $69.17. Questioned Costs: $31.05 Context: The University did not properly calculate R2T4's in all cases where it should have. Cause: The University did not have proper procedures in place to correctly calculate and timely return appropriate funds. Effect: Funds were not disbursed to students or returned to the Department of Education as they should have been. Repeat Finding: Yes - 2024-002 Recommendation: We recommend the University implement a formal review process as it relates to withdrawn students to ensure R2T4 calculations are being performed accurately and timely. Views of Responsible Officials: There is no disagreement with the audit finding.