Finding 1216514 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-03
Audit: 402999
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: The University failed to accurately and timely return Title IV funds for students who withdrew, due to a lack of formal control processes.
  • Impacted Requirements: Compliance with Title IV regulations regarding the calculation and remittance of unearned federal financial aid.
  • Recommended Follow-Up: Establish and document a formal process for completing and reviewing Title IV calculations for all withdrawn students.

Finding Text

Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing #84.268 Federal Direct Student Loans - 2024/2025 P268K251430 Federal Financial Assistance Listing #84.063 Federal Pell Grant Program - 2024/2025 P063P241430 Special Tests & Provisions: Return of Title IV Funds Material Weakness in Internal Control over Compliance and Noncompliance not Considered Material Criteria: The unearned amount of Title IV assistance to be returned is calculated by subtracting the amount of Title IV assistance earned by the student from the amount of Title IV aid that was disbursed to the student as of the date of the institution’s determination that the student withdrew (34 CFR 668.22(e)). Condition: Two instances were identified where the amount of funds to be returned was not remitted correctly, and two instances were identified where the funds were returned in the correct amount, but not timely. Cause: The University did not have a formal, documented control process to ensure all students who withdrew from courses had a return of Title IV calculation completed accurately and timely or a review of the return of Title IV calculation that was completed to ensure accuracy and reasonableness. Effect: Without a formal process to document the completion and review of return of Title IV calculations, there is a possibility that the calculation could be incorrect or not completed, and funds returned could be incorrect or not returned when required to be. Questioned Costs: None reported Context/Sampling: Of the 17 students who had an R2T4 calculation performed, 6 students were tested. Repeat Finding from Prior Years: Yes, prior year finding 2024-001 Recommendation: The University should review its established formal process and controls to ensure that a return of Title IV calculation is completed and documented for all withdrawn students and that the review process is also documented. Views of Responsible Officials: Management agrees. Management’s complete response can be found in the separately issued corrective action plan.

Corrective Action Plan

Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing/CFDA #84.268 Federal Direct Student Loans - 2024/2025 P268K211430 Federal Financial Assistance Listing/CFDA #84.063 Federal Pell Grant Program - 2024/2025 P063P201430 Special Tests & Provisions: Return of Title IV Funds Material Weakness in Internal Control over Compliance and Noncompliance not Considered Material Finding Summary: Two instances were identified where the amount of Title IV funds to be returned was not remitted correctly, and two instances were identified where the funds were returned in the correct amount but not in a timely manner. Responsible Individuals: Robert Hoover, Director of Financial Aid and Ashley Hantelmann, Associate Director of Financial Aid Corrective Action Plan: The Financial Aid Office will continue strengthening its Return of Title IV (R2T4) procedures to ensure accurate and timely processing. The secondary review process has been expanded and formalized, now including the Associate Director of Financial Aid to provide additional oversight. The R2T4 checklist has been updated to better align with compliance standards and ensure consistent documentation. Staff will receive ongoing training, and periodic internal reviews will be conducted to monitor compliance. Anticipated Completion Date: August 1, 2026

Categories

Student Financial Aid Special Tests & Provisions Material Weakness Reporting

Other Findings in this Audit

  • 1216512 2025-002
    Material Weakness Repeat
  • 1216513 2025-002
    Material Weakness Repeat
  • 1216515 2025-003
    Material Weakness Repeat
  • 1216516 2025-003
    Material Weakness Repeat
  • 1216517 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $2.57M
84.063 FEDERAL PELL GRANT PROGRAM $2.02M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $896,268
93.364 NURSING STUDENT LOANS $253,484
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $190,668
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $119,660
84.033 FEDERAL WORK-STUDY PROGRAM $82,890
93.264 NURSE FACULTY LOAN PROGRAM (NFLP) $71,518
97.008 NON-PROFIT SECURITY PROGRAM $50,293
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $15,088