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 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for returning funds to ED and student accounts within 45 days of the University becoming aware the student has withdrawn, or within 30 days for students that never began attendance.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. 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 Effect - The University may not be able to timely detect when returns of funds are required for students who have withdrawn or never began attendance.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 the incorrect calculation of return of funds. Questioned Costs - $2,690 Assistance Listing Number 84.268 Federal Direct Student Loans (This was calculated based on recalculation of refund compared to actual paid) Context - Out of a population of 81 student refunds with total federal aid received of $758,496, a sample of 11 student returns with total federal aid received of $113,221 was selected for testing. One of the selections was over-refunded to the student for Direct Student Loans by $2,673, and one selection was under-refunded to the student for Direct Student Loans by $17. 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 action plan provided by management.