Finding 1174177 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-18
Audit: 387869
Organization: Kentucky Wesleyan College (KY)

AI Summary

  • Core Issue: The College failed to accurately calculate return of funds for students who officially withdrew, violating 34 CFR Section 668.22.
  • Impacted Requirements: Incorrect total days attended were used for four students' return calculations, leading to questioned costs of $2,801 in Title IV aid.
  • Recommended Follow-Up: Implement a verification process for calculations and ensure the Assistant Director of Financial Aid reviews all returns before finalization.

Finding Text

Federal Program: U.S. Department of Education: Student Financial Aid Cluster: Federal Pell Grant Program, Assistance Listing 84.063 Federal Supplemental Educational Opportunity Grants, Assistance Listing 84.007 Direct Loan Student Loans, Assistance Listing 84.268 Criteria: The College must comply with 34 CFR Section 668.22(f). Condition: We tested of nine official withdrawals, which included four students that officially withdrew in the Spring semester, with two of those who withdrew subsequent to spring break. We noted the incorrect amount of total days in the Spring semester was used in the return of funds calculation for all students who withdrew in the Spring semester. Additionally, the two of the students that officially withdrew subsequent to spring break incorrectly had included in the total number of days attended in the semester in their return of funds calculation. Cause: The College does not have procedures in place to properly review days used and attended within the return of funds calculation. Effect: The provisions of 34 CFR Section 668.22 were not followed, and thus a total of four students had incorrect return of funds calculations. Questioned Costs: Known question costs total $2,801 in Title IV aid that should have been returned as a result of our testing of nine official withdrawals. Upon additional analysis, there were no other official withdrawals in the Spring semester who were impacted by these errors. Recommendation: The College should implement a process and controls to verify calculations before finalizing returns. View of responsible officials and planned corrective actions: The Director of Financial Aid has verified in the Student Aid Handbook to include the weekend after the last day of class to the next full day of instruction (includes Saturday and Sunday). Powerfaids has been updated to include these other days. Before finalizing any returns, the Assistant Director of Financial Aid will review the R2T4.

Corrective Action Plan

Federal Program: U.S. Department of Education: Student Financial Aid Cluster: Federal Pell Grant Program, Assistance Listing 84.063 Federal Supplemental Educational Opportunity Grants, Assistance Listing 84.007 Direct Loan Student Loans, Assistance Listing 84.268 Criteria: The College must comply with 34 CFR 668.22(f). Condition: We tested nine official withdrawals, which included four students that officially withdrew in the Spring semester, with two of those who withdrew subsequent to spring break. We noted the incorrect amount of total days in the Spring semester was used in the return of funds calculation for all students who withdrew in the Spring semester. Additionally, the two of the students that official withdrew subsequent to spring break incorrectly had included in the total number of days attended in the semester in their return of funds calculation. Cause: The College does not have procedures in place to properly review days used and attended within the return of funds calculation. Effect: The provisions of 34 CFR Section 668.22 were not followed, thus a total of four students had incorrect return of funds calculations. Recommendation: The College does not have procedures in place to properly review days used and attended within the return of funds calculation. Views of responsible officials and planned corrective actions: The Director of Financial Aid has verified in the Student Aid Handbook to include the weekend after the last day of class to the next full day of instruction (includes Saturday and Sunday). Powerfaids has been updated to include these other days. Before finalizing any returns, the Assistant Director of Financial Aid will review the R2T4. Completion date 2/10/2026. Responsible staff: Crystal Benton, Director of Financial Aid

Categories

Student Financial Aid

Other Findings in this Audit

  • 1174174 2025-001
    Material Weakness Repeat
  • 1174175 2025-002
    Material Weakness Repeat
  • 1174176 2025-002
    Material Weakness Repeat
  • 1174178 2025-003
    Material Weakness Repeat
  • 1174179 2025-003
    Material Weakness Repeat
  • 1174180 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $3.79M
84.063 FEDERAL PELL GRANT PROGRAM $2.66M
84.033 FEDERAL WORK-STUDY PROGRAM $126,148
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $107,632
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $3,772