Finding 1173159 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-10
Audit: 386574
Organization: Lipscomb University (TN)
Auditor: LBMC PC

AI Summary

  • Core Issue: One student's Title IV funds were not returned to the Department of Education on time, affecting compliance.
  • Impacted Requirements: Institutions must return Title IV funds within 45 days of determining a student's withdrawal.
  • Recommended Follow-Up: Supervisors should verify that all calculated refunds match actual remittances to prevent future issues.

Finding Text

Condition: Title IV funds related to one student, out of a total of 65 students that withdrew and received Title IV funds, were not remitted to the Department of Education within the required timeframe. Criteria: When a recipient of a Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Questioned Costs: None Cause: The refund was calculated correctly but management inadvertently missed the refund when processing the returns. Effect: The University was not in compliance with the return of Title IV funds based on the refund not being remitted timely. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that a supervisor of the individual processing the return of funds compare the refunds calculated to the actual remittances to ensure all refunds are included. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Finding Summary: When a recipient of Title IV assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must calculate the correct amount of Title IV grant or loan assistance that the student earned based on the student’s withdrawal date and allocation of Title IV funds and return unearned funds to the Department of Education within 45 days. During the fiscal year 2025 period, one student that withdrew during the Fall term required a return of Title IV funds. However, the funds were not returned to the Department of Education within the required timeframe. Corrective Action Plan: Student Financial Aid management has developed a new master return of Title IV spreadsheet to ensure the return of funds and is routinely monitored by three different members of the Financial Aid Team. Anticipated Completion Date: The procedures will be implemented for the 2025-2026 Financial Aid Year. Responsible Parties: Ron Anderson

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1173155 2025-001
    Material Weakness Repeat
  • 1173156 2025-001
    Material Weakness Repeat
  • 1173157 2025-001
    Material Weakness Repeat
  • 1173158 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $42.69M
84.063 FEDERAL PELL GRANT PROGRAM $5.98M
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $1.00M
93.732 MENTAL AND BEHAVIORAL HEALTH EDUCATION AND TRAINING GRANTS $738,682
84.033 FEDERAL WORK-STUDY PROGRAM $455,930
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $342,516
84.425 EDUCATION STABILIZATION FUND $101,871
93.837 CARDIOVASCULAR DISEASES RESEARCH $87,756
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $84,454
93.359 NURSE EDUCATION, PRACTICE, QUALITY AND RETENTION GRANTS $35,913
93.250 GERIATRIC ACADEMIC CAREER AWARDS PROGRAMS $31,799
93.847 DIABETES, DIGESTIVE, AND KIDNEY DISEASES EXTRAMURAL RESEARCH $28,723
93.838 LUNG DISEASES RESEARCH $25,781
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $11,316
93.307 MINORITY HEALTH AND HEALTH DISPARITIES RESEARCH $9,392
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $9,200
47.041 ENGINEERING $7,497