Finding 1211078 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-04-30
Audit: 400332
Organization: Ana G. Mendez University, Inc. (FL)

AI Summary

  • Core Issue: The University did not properly identify students who withdrew, leading to late refunds for Federal Student Aid.
  • Impacted Requirements: Failure to comply with Title IV regulations regarding timely return of funds as outlined in 34 CFR Section 668.22.
  • Recommended Follow-Up: Implement stronger controls and audits to ensure accurate calculations and timely repayments of funds owed to lenders.

Finding Text

Finding Student Financial Assistance Cluster, ALN 84. 268 Federal Direct Student Loans, ALN 84.063 Federal Pell Grant Program, ALN 84.007 Federal Supplemental Educational Opportunity Grants, U.S. Department of Education Program Year 2024-2025 Criteria or specific requirement: Special Tests: Return of Title IV Funds 34 CFR Section 668.22 Condition: The University's Office of Financial Aid failed to identify students who officially or unofficially withdrew and therefore, refunds were not remitted timely for these students. Cause: Incomplete implementation, configuration, and automation within the AGMU’s information system (Anthology). This situation was exacerbated by several personnel changes within the Financial Aid Office and the Bursar’s Office. Finally, the Institution did not perform internal audits or similar reviews to confirm student eligibility once initial determinations of eligibility were made. Effect or potential effect: The calculation of funds to be returned was calculated incorrectly and funds were not made back to the lender within the required timeframe. Questioned costs: $21,048 Context: Out of a population of 1,119 official and unofficial withdrawals of students who received Student Financial Assistance, a sample of 60 student withdrawals were selected for testing. Our sample was not and was not intended to be statistically valid. For 6 of the student withdrawals tested, the calculation of funds to be returned was calculated incorrectly and funds were not made back to the lender within the required timeframe. Identification as a repeat finding: N/A Recommendation: We recommend that management implement controls that prevent, detect, or correct errors related to the Return of Title IV calculations and repay owed funds. Views of responsible officials and planned corrective actions: Management agrees with this finding based on the above criterion. Please refer to the Corrective Action Plan.

Corrective Action Plan

Due to challenges related to the implementation and reporting functionality of the Anthology Student system, AGMU temporarily experienced difficulties in identifying students who officially or unofficially withdrew from the payment period. Although the compliance issues identified in this finding are primarily attributable to system implementation challenges, AGMU understands the importance of timely returns to the U.S. Department of Education related to withdrawn students and is engaged in a comprehensive effort to address deficiencies, prevent recurrence, and return any funds due from AGMU as soon as feasible. To resolve this issue and prevent recurrence, AGMU is completing the corrective actions described below. Corrective Action 1: Student eligibility and withdrawn students file review AGMU completed a file review of the 2023-24 and 2024-25 award years to identify students who (1) failed to begin attendance in a course or courses, and/or (2) had ISIR comment codes requiring resolution. As a result of this file review, AGMU has recalculated Title IV awards for impacted students. AGMU has also completed a file review of the 2023-24 and 2024-25 award years to confirm it has identified all students who officially and unofficially withdrew from the payment period. AGMU is now in the process of compiling system data to perform or re-perform R2T4 calculations for these students, as appropriate. Once AGMU has completed the R2T4 file review and confirmed if additional returns are required for the impacted students, AGMU will report the recalculated award amounts to COD and return funds via G5. Corrective Action 2: Development and enhancement of reports to facilitate the identification of withdrawn students and support the R2T4 calculation. AGMU developed new reports and enhanced existing reports that will aid the institution in timely identifying withdrawn students and performing accurate R2T4 calculations, including but not limited to the following reports that AGMU reviews weekly: • A report (“Customized Enrollment Status Change” report) that identifies students with enrollment status changes that may indicate the student ceased attending the payment period and thus a R2T4 is required. • Reports (“AGMU R2T4 Calculation Detail” and “AGMU R2T4 Review by Term” report) that extract data used in the R2T4 calculation from the student information system, such as term dates, module dates, and Title IV disbursements. • A report (“R2T4 Return of Funds” report) that track R2T4s performed in the system for which funds have not yet been returned via COD and potential post-withdrawal disbursements to student and parent borrowers. • A report (“Canvas Last Academic Activity” report) from the learning management system that confirms the student’s last date of academic engagement in an online course to assist in determining the student’s withdrawal date. AGMU uses the above reports jointly with reviewing live student data in the Anthology Student system when performing a R2T4 calculation, returning funds or disbursing or offering a post-withdrawal disbursement to a student or parent borrower. Corrective Action 3: Review and revision of policies and procedures related to student eligibility. AGMU is in the process of revising its existing policies and procedures related to student eligibility determinations to ensure they correctly describe processes in the Anthology system. AGMU is also in the process of revising its existing policies and procedures related to identifying withdrawn students, performing the R2T4 calculation, and returning funds via COD to ensure they correctly describe processes in the Anthology system. Corrective Action 4: Ongoing monitoring by and support from system office personnel SUAGM central office financial aid personnel perform and assist with quality assurance activities related to AGMU’s determination of student eligibility such as: 1. Reporting parameters are reviewed and refined collaboratively by Financial Aid, Registrar, and Information Technology (IT) staff to ensure that custom reports capture accurate, complete, and relevant data. This process includes validating data fields, logic, and calculation criteria used to support enrollment status changes and student eligibility analysis (i.e., the monitoring of ISIR comment codes). 2. Customized reports developed for enrollment status changes and student eligibility analysis are reviewed biweekly to identify changes in enrollment intensity, eligibility indicators, and potential ineligible disbursements. These reports support the timely review of aid adjustments and identification of cases requiring resolutions or returns. 3. Student record samples are selected and discussed at regularly scheduled validation meetings. These meetings include representatives from the Registrar, Financial Aid, Bursar, IT, and Compliance to confirm data accuracy, validate reporting results, and identify any necessary process or reporting adjustments. SUAGM central office financial aid personnel also perform and assist weekly with quality assurance activities related to AGMU’s identification of withdrawn students, performing the R2T4 calculation, and returning funds via COD, such as: 1. Reviewing reports generated by AGMU related to official and unofficial withdrawals, including validation of withdrawal dates, last date of academic activity, and enrollment status changes identified through registrar and financial aid data. 2. Reviewing R2T4 calculations prepared by AGMU to confirm accurate payment period dates and scheduled days for programs offered in modules, earned and unearned aid determinations, and amounts scheduled for return. 3. Monitoring the timely submission of returns through COD, including the review of refund activity reports and confirmation that returns are properly recorded and reconciled. Corrective Action 5: Ongoing training of AGMU personnel on key R2T4 concepts AGMU has mandated additional R2T4 training for personnel who interact with the R2T4 process in the financial aid office, registrar’s office, and bursar’s office. In addition to requiring that personnel attend training organized by SUAGM, AGMU employees have participated in webinars offered by Federal Student Aid, NASFAA, and third-party servicers, accounting firms, and law firms with expertise in R2T4 concepts.

Categories

Student Financial Aid

Other Findings in this Audit

  • 1211076 2025-002
    Material Weakness Repeat
  • 1211077 2025-002
    Material Weakness Repeat
  • 1211079 2025-003
    Material Weakness Repeat
  • 1211080 2025-003
    Material Weakness Repeat
  • 1211081 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $93.18M
84.063 FEDERAL PELL GRANT PROGRAM $25.88M
84.120 MINORITY SCIENCE AND ENGINEERING IMPROVEMENT $170,982
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $146,895