Finding 1173456 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-13

AI Summary

  • Core Issue: Incorrect spring break days led to errors in Return of Title IV calculations, resulting in $125.30 of funds not being returned to the U.S. Department of Education.
  • Impacted Requirements: Compliance with 34 CFR §668.22 regarding the accurate calculation of Return of Title IV Funds.
  • Recommended Follow-Up: Implement stronger controls to ensure accurate disbursements and Return of Title IV calculations moving forward.

Finding Text

Federal Program – Student Financial Assistance Cluster – Assistance Listing Numbers 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 – Special Tests and Provisions – Return of Title IV Funds – 34 CFR §668.22 Condition – The incorrect number of days for spring break was used in the Spring 2025 Return of Title IV calculations, causing amounts due back to the U.S. Department of Education to not be properly identified and returned. Questioned Costs – $125.30 – $48.02 for 84.063, Federal Pell Grant Program and $77.28 for 84.268, Federal Direct Student Loans Context – Out of a population of 118 students who withdrew during fiscal year 2025, 13 were selected for testing. Of the 13 tested, two were identified to have errors in their Return of Title IV calculations, which were caused by the inappropriate number of days used for spring break. Management further investigated the impact on other students who withdrew in Spring 2025 and an additional nine students were identified as being impacted by this error. Effect – The University allowed students to maintain a total of $125.30 of Title IV funds that should have been returned to the U.S. Department of Education. Cause – The University did not have appropriate controls in place to ensure the accuracy of disbursements and Return of Title IV calculations. Identification as a Repeat Finding – N/A Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding Return of Title IV Funds to ensure that all returns of funds are appropriately calculated and processed. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.

Corrective Action Plan

Identification Number: 2025‑004 – Return of Title IV Funds Finding: Incorrect spring break days were used in Return of Title IV calculations for Spring 2025, resulting in inaccurate return amounts and funds not properly returned to the U.S. Department of Education. Corrective Action Plan: Management agrees with the finding. The University will revise Return of Title IV calculation procedures to ensure accurate identification of payment periods, including scheduled breaks. A secondary review of all Return of Title IV calculations will be implemented prior to processing returns to confirm accuracy and compliance with federal regulations. Identified funds due will be returned to the U.S. Department of Education. Responsible Officials and Implementation Date: The Director of Student Financial Services will be responsible for implementing the corrective action, with oversight from the Vice President for Administration and Finance. Revised procedures and secondary review controls will be implemented by February 16, 2026.

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1173450 2025-003
    Material Weakness Repeat
  • 1173451 2025-004
    Material Weakness Repeat
  • 1173452 2025-006
    Material Weakness Repeat
  • 1173453 2025-002
    Material Weakness Repeat
  • 1173454 2025-002
    Material Weakness Repeat
  • 1173455 2025-003
    Material Weakness Repeat
  • 1173457 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $16.91M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $11.19M
84.063 FEDERAL PELL GRANT PROGRAM $10.61M
15.114 INDIAN EDUCATION HIGHER EDUCATION GRANT $1.58M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $791,018
84.047 TRIO UPWARD BOUND $453,496
84.033 FEDERAL WORK-STUDY PROGRAM $270,887
93.426 THE NATIONAL CARDIOVASCULAR HEALTH PROGRAM $202,947
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $202,486
84.425 EDUCATION STABILIZATION FUND $100,291
43.001 SCIENCE $77,455
93.RD HHS RESEARCH $71,204
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $51,080
47.083 INTEGRATIVE ACTIVITIES $46,756
84.031 HIGHER EDUCATION INSTITUTIONAL AID $39,941
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $28,786
64.116 VETERAN READINESS AND EMPLOYMENT $27,609
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $187