Finding 1179319 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-12
Audit: 391677
Auditor: 440160260

AI Summary

  • Core Issue: The University incorrectly calculated the amount of Title IV funds to return after students withdrew, leading to overpayments to the Department of Education.
  • Impacted Requirements: Compliance with Title IV regulations on the return of funds, specifically the accurate calculation of earned aid based on withdrawal dates.
  • Recommended Follow-Up: Implement a formal checklist for secondary reviews to ensure accurate calculations of Title IV fund returns.

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, 84.268. 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 earned percentage, based upon the enrollment period determined and the amount of aid to return, was calculated incorrectly. The University returned the incorrect amount of funds to the Department of Education because of the error in the calculation. Questioned Costs – None – The University returned more Title IV aid than what was required Context – Of a sample of 25 return of funds tested from a population of 435 performed during the examination period, three return of funds calculations were not performed correctly. This resulted in an incorrect amount of funds being returned to the Department of Education for those students. Our sample was not, and was not intended to be, statistically valid. Cause – The number of days in the break for students who were enrolled in a Session 2 class and later dropped in Session 4 was calculated incorrectly when determining the enrollment period. Effect – The University returned the incorrect amount of funds to the Department of Education. Identification as a Repeat Finding – N/A Recommendation – We recommend the University to establish a formal checklist to assist in performing secondary reviews to verify the calculations are performed correctly.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions – While the Financial Aid Office does have two personnel reviewing each R2T4 calculation, the same was not done with the online calendars setup in COD. The Director will now review each online calendar before they are utilized. The Office of Financial Aid performed a review of the population of 672 students, noting an incorrect amount of funds was returned to the Department of Education for 32 of those students. The College has corrected and sent back the additional funds that the students were not eligible to receive.

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1179314 2025-002
    Material Weakness Repeat
  • 1179315 2025-002
    Material Weakness Repeat
  • 1179316 2025-001
    Material Weakness Repeat
  • 1179317 2025-002
    Material Weakness Repeat
  • 1179318 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $22.29M
84.063 FEDERAL PELL GRANT PROGRAM $11.74M
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $208,575
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $190,497
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $101,809
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $72,150
84.033 FEDERAL WORK-STUDY PROGRAM $32,963
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $24,044
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $11,707