Finding Text
Information on the Federal Program - Student Financial Assistance Cluster, Assistance Listing Number 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(a)(1) through (a)(5)). Condition - Federal regulations provide 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for returning funds to ED and student accounts within 45 days of the University becoming aware the student has withdrawn, or 30 days for students that never began attendance. The University's internal control system did not prevent inaccurate returns. Cause - The University's processes did not ensure return of Title IV funds were completed accurately and timely. Effect - The University may not be able to timely detect when returns of funds are required for students who have withdrawn or never began attendance. This could result in late disbursements or over-refunding of return of funds. Questioned costs – $2,443 (This was calculated based on recalculation of refund compared to actual paid.) Context - Out of a population of 109 student refunds with total federal aid received of $1,599,298, a sample of 25 student returns with total federal aid received of $381,257 was selected for testing. One of the selections was over-refunded to the student for Federal Direct Students Loan by $2,443. Our sample was not, and was not intended to be, statistically valid. Identification as a repeat finding – Not Applicable 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 plan provided by management.