Finding 1171713 (2025-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-01-30

Audit: 384755

Organization: Simpson University (CO)

Auditor: CAPINCROUSE LLC

AI Summary

Core Issue: Title IV funds were not returned accurately or on time for students who withdrew, with delays of up to 44 days.
Impacted Requirements: Compliance with 34 CFR 668.22 regarding timely return of funds.
Recommended Follow-Up: Calculate R2T4 immediately upon withdrawal notification and have a knowledgeable individual review calculations to ensure compliance.

Finding Text

Incorrect and Untimely Return of Title IV Funds (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Pell Grants and 84.268 Federal Direct Loans Federal Award Identification #: 2024-2025 Financial Aid Year Condition: Title IV funds were not always returned accurately or timely when students withdrew during a term. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 7 students, 3 students who withdrew during the audit period tested had a total of $13,214 Federal Direct Loans (FDL) and $1,820 of Pell returned late, ranging from 17 to 44 days late. Additionally one student in a modular program, had all their Pell returned when they unofficially withdrew but was eligible for $924. Cause: Staffing issues and turnover Effect: Incorrect amounts of federal funding were returned. Return of Title IV funds were not performed timely. Identification as repeat finding, if applicable: Yes, 2024-001. Recommendation: We recommend that R2T4’s be calculated as soon as the financial aid office is notified of student’s official withdrawal or when it is determined a student unofficially withdrew. We also recommend that an individual with appropriate knowledge review R2T4 calculations and returns made to help ensure that internal controls are operating effectively to achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

2025-002 Incorrect and Untimely Return of Title IV Funds (R2T4) Calculations Planned Corrective Action: The University agrees mostly with these findings. The University determined that delays in certain Return of Title IV (R2T4) calculations were primarily the result of gaps in the timing and consistency of withdrawal information communicated between offices during the audit period. To address this, the University has strengthened procedures between the Registrar’s Office and the Financial Aid Office to ensure timely identification of official and unofficial withdrawals and prompt initiation of R2T4 calculations. The University has reviewed the affected student accounts and confirmed that Title IV funds were returned appropriately. With respect to the student in the modular program, the Pell Grant adjustment was required because the student had already received Pell Grant funds at another institution during the same award year and was not eligible for the additional amount; this adjustment was not the result of an R2T4 calculation. The University will continue to monitor withdrawal reporting and R2T4 processing to ensure ongoing compliance with federal requirements. Person Responsible for Corrective Action Plan: Adrienne Currington, University Registrar and Shondra Dickson, Director of Financial Aid Anticipated Date of Completion: September 1, 2026

Other Findings in this Audit

1171712 2025-002

Material Weakness Repeat
1171714 2025-003

Material Weakness Repeat
1171715 2025-003

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.268	FEDERAL DIRECT STUDENT LOANS	$7.74M
84.063	FEDERAL PELL GRANT PROGRAM	$2.33M
84.334	GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE PROGRAMS	$426,061
84.047	TRIO UPWARD BOUND	$302,850
84.042	TRIO STUDENT SUPPORT SERVICES	$288,024
84.033	FEDERAL WORK-STUDY PROGRAM	$135,176
84.007	FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS	$75,260