Finding 1173574 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-13
Audit: 387286
Organization: Providence Christian College (CA)

AI Summary

  • Core Issue: Title IV aid was not returned on time for students who withdrew, violating federal requirements.
  • Impacted Requirements: Institutions must return unearned Title IV funds within 45 days of determining a student's withdrawal.
  • Recommended Follow-Up: Implement a reliable process to ensure timely returns of unearned Title IV aid to prevent future delays.

Finding Text

Information on the Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, 84.063; Federal Work-Study Program, 84.033; Federal Supplemental Educational Opportunity Grant Program, 84.007; Federal Direct Student Loan Program. Program Year – July 1, 2024 – June 30, 2025 Criteria or Specific Requirement – Special Tests and Provisions – Return of Title IV Funds – When a recipient of 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 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 or 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 as soon as possible but no later than 45 days after the date of the institution’s determination that the student withdrew (34 CFR Sections 668.22(a)(1)-(3)). Condition – The return of unearned Title IV aid did not occur within the required timeframe. Questioned Costs – None – nonmonetary finding Context – Out of a sample of 2 students from a population of 11 students who withdrew during the year, unearned Title IV aid was not returned timely for two of the student calculations reviewed. Our sample was not, and was not intended to be, statistically valid. Cause – In November of 2023, Providence Christian College faced significant institutional turnover. The Financial Aid Director of 15 years left the institution. The appointed successor to the Financial Aid Director then made a decision to leave the institution on December 15th, 2023. This institutional turmoil created upheaval in the department and required the assistance of a consultant. The current provider, Campus Ivy, was not able to provide consulting services and so Providence contracted with FA Solutions to bring stability to the Financial Aid Department. In this specific situation, FA Solutions had a manual error that resulted in a miscalculation. Effect – The unearned Title IV aid was ultimately calculated and returned correctly to the Department of Education but was not performed timely. Identification as a Repeat Finding – N/A Recommendation – We recommend the University ensure the process to return Title IV aid is properly followed to allow for the timely return of unearned Title IV aid.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions – The CFO and the Students Account Manager will add a checklist step to verify the correct inclusion of all scheduled breaks in the R2T4 calculation, will implement a secondary review process to confirm data accuracy before finalizing R2T4, and will provide training to relevant staff.

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1173565 2025-002
    Material Weakness Repeat
  • 1173566 2025-002
    Material Weakness Repeat
  • 1173567 2025-002
    Material Weakness Repeat
  • 1173568 2025-002
    Material Weakness Repeat
  • 1173569 2025-003
    Material Weakness Repeat
  • 1173570 2025-003
    Material Weakness Repeat
  • 1173571 2025-004
    Material Weakness Repeat
  • 1173572 2025-004
    Material Weakness Repeat
  • 1173573 2025-004
    Material Weakness Repeat
  • 1173575 2025-005
    Material Weakness Repeat
  • 1173576 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $927,662
84.031 HIGHER EDUCATION INSTITUTIONAL AID $584,997
84.063 FEDERAL PELL GRANT PROGRAM $395,240
84.033 FEDERAL WORK-STUDY PROGRAM $23,998
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $8,206