Finding 1173578 (2025-002)

Information on the Federal Program: Student Financial Assistance Cluster, Assistance Listing Number 84.268 Federal Direct Student Loans, Assistance Listing Number 84.063 Federal Pell Grant Program, 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: Federal regulations provide that the University is responsible for returning funds to ED and student accounts within 45 days of the University becoming aware the student has withdrawn, or within 30 days for students that never began attendance. The University’s internal control system did not prevent certain late disbursements of return of funds. Questioned Costs: None Context: Out of a population of 40 withdrawn students requiring return of Title IV funds, a sample of 5 withdrawn students were selected for testing. All 5 of the returns were not returned to ED or the student within the required time frame. Of these students, 4 of the 5 returns were not returned to ED within the 45 day period. Additionally, 2 of the 5 returns were not returned to ED or the student within the 30 day period for students that never began attendance. Our sample was not, and was not intended to be, statistically valid. Effect: The University may not be able to timely detect when return of funds are required for students who have withdrawn or never began attendance. This could result in late disbursements to ED and the student accounts for Direct Loan and Pell recipients. Cause: The University's processes did not ensure return of Title IV funds were completed accurately and timely. Identification as a Repeat Finding, if Applicable: 2024-001 Recommendation: We recommend the University evaluate controls around monitoring return of Title IV funds to determine changes, either on the electronic processes or review processes that should be made to properly capture return of Title IV funds on a timely basis. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding and recommendation. See further information on the corrective action plan provided by management.