Finding 1201473 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396041
Organization: William Peace Universirty (NC)

AI Summary

  • Core Issue: The University failed to complete a required R2T4 calculation for a student who withdrew, indicating a significant deficiency in internal controls.
  • Impacted Requirements: This finding violates 34 CFR 668.22(a)(1), which mandates calculating the amount of Title IV assistance earned upon student withdrawal.
  • Recommended Follow-Up: The University should review R2T4 requirements and enhance processes to ensure all necessary calculations are performed for withdrawing students.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Numbers: 84.063, 84.268, 84.007, 84.033 Federal Award Identification Numbers: P007A243144, P063P241946, P033A243144, P268K251946 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: In accordance with 34 CFR 668.22(a)(1), 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 grant or loan assistance that the student earned as of the student’s withdrawal date. Condition: During our testing, it was noted that an R2T4 calculation was not completed. Questioned Costs: N/A Context: One out of seven students selected for testing should have had a R2T4 calculation completed upon withdrawing from the University. Cause: The University’s controls over performing R2T4 calculations were not functioning as designed. Effect: The University is not following guidelines to calculate and return funds depending upon the date of the student’s withdrawal. Repeat Finding: Yes, 2024-005 Recommendation: We recommend the University review the R2T4 requirements and ensure their process incorporates a review of students to ensure no calculations are missed that should be performed. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.

Corrective Action Plan

Return of Title IV (R2T4) Funds Recommendation: We recommend the University review the R2T4 requirements and ensure their process incorporates a review of students to ensure no calculations are missed that should be performed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will take action to comply with this recommendation. Name(s) of the contact person(s) responsible for corrective action: Director of Financial Aid Deniesha Newby

Categories

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1201470 2025-004
    Material Weakness Repeat
  • 1201471 2025-004
    Material Weakness Repeat
  • 1201472 2025-004
    Material Weakness Repeat
  • 1201474 2025-005
    Material Weakness Repeat
  • 1201475 2025-005
    Material Weakness Repeat
  • 1201476 2025-006
    Material Weakness Repeat
  • 1201477 2025-007
    Material Weakness Repeat
  • 1201478 2025-007
    Material Weakness Repeat
  • 1201479 2025-008
    Material Weakness Repeat
  • 1201480 2025-009
    Material Weakness Repeat
  • 1201481 2025-009
    Material Weakness Repeat
  • 1201482 2025-009
    Material Weakness Repeat
  • 1201483 2025-009
    Material Weakness Repeat
  • 1201484 2025-010
    Material Weakness Repeat
  • 1201485 2025-010
    Material Weakness Repeat
  • 1201486 2025-010
    Material Weakness Repeat
  • 1201487 2025-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $4.21M
84.063 FEDERAL PELL GRANT PROGRAM $1.80M
84.033 FEDERAL WORK-STUDY PROGRAM $44,956
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $37,339
84.425 EDUCATION STABILIZATION FUND $8,266