Finding 1215395 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-05-21
Audit: 401965
Organization: Athens State University (AL)

AI Summary

  • Core Issue: The University failed to return unearned Title IV funds for nine students, totaling $16,206.
  • Impacted Requirements: The University did not comply with 34 CFR part 668, which mandates returning unearned aid within 45 days of withdrawal.
  • Recommended Follow-Up: Enhance controls and involve multiple staff members to ensure timely calculations and refunds of Title IV funds.

Finding Text

– Student Financial Assistance – Return of Title IV Funds Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s) Federal Pell Grant Assistance Listing Number(s): 84.063 Award Year: 2025 CRITERIA: 34 CFR part 668 establishes rules governing the student withdrawal process including the return of unearned Title IV aid within 45 days of a student’s withdrawal. CONDITION: During our Return of Title IV Funds testing of a sample of 25 students, we noted the following exceptions: • For one student, the University calculated the proper amount for return, but did not return the calculated $732. • For eight students, the University did not calculate and did not return $15,474 QUESTIONED COSTS: $16,206 CAUSE/EFFECT: The Return to Title IV calculations rely on a manual report process by management. These students were incorrect excluded from the calculation. As such, the required return of funds was not calculated timely and the University was not in compliance with the Return of Title IV Funds requirements. RECOMMENDATION: The auditor recommends the University enhance its controls and incorporate multiple individuals in the process to ensure that Title IV refunds are calculated and made timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess controls, review these accounts and implement controls to ensure that timely calculations and refunds are made.

Corrective Action Plan

Management’s Response: Management understands the requirements specific to calculating and returning unearned Title IV aid. Management acknowledges and agrees with the findings as presented. Views of Responsible Officials and Corrective Action: We will reassess controls, review these processes and implement controls to ensure that timely calculations and return of funds are made. Furthermore, the funds noted were sent back prior to year-end. Name of Responsible Person: LaShanda Chamberlain, Director of Student Financial Aid Implementation Date: Immediately

Categories

Student Financial Aid

Other Findings in this Audit

  • 1215396 2025-002
    Material Weakness Repeat
  • 1215397 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $13.36M
84.063 FEDERAL PELL GRANT PROGRAM $7.42M
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $421,052
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $360,931
84.033 FEDERAL WORK-STUDY PROGRAM $235,765
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $120,979
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $102,149
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $59,082
47.084 TECHNOLOGY, INNOVATION, AND PARTNERSHIPS $34,832