FAC Explorer

Finding 1226227 (2023-019)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2026-08-11
Audit: 408872
Organization: Central State University (OH)
Auditor: CROWE LLP

AI Summary

  • Core Issue: The University failed to comply with federal requirements for returning Title IV funds for students who withdrew, including late returns and incorrect calculations.
  • Impacted Requirements: Non-compliance with 34 CFR 668.22, specifically regarding timely returns (over 45 days) and lack of documentation for withdrawal dates.
  • Recommended Follow-Up: Update policies and procedures for processing Title IV aid calculations, implement additional training, and ensure accurate and timely processing to prevent future issues.

Finding Text

Federal Program Information: Federal Direct Loan Program, ALN #84.268, Federal Pell Grant Program, ALN #84.063, Federal Supplemental Educational Opportunity Grants, ALN #84.007 Criteria: 34 CFR 668.22 outlines when a recipient of the loan program withdraws during the year, the University must determine the amount of the loan that the student earned as of the student’s withdrawal date for a Return of Title IV Funds. Condition: The University did not comply with all requirements associated with the calculation and return of Title IV funds for students who withdrew during an academic term. The calculations were not formally reviewed by an independent individual. Context: During testing of the Return of Title IV) population, a sample of student records was selected to evaluate compliance with federal requirements. The following exceptions were identified within the sample tested: • For 19 students the University did not return Title IV funds within the required 45-day timeframe. The range was from 50 days to 453 days. • For 4 students where the calculations were performed correctly; the actual amounts returned differed from the calculated amounts by more than $10. The amount of the over-return was $1,149. • For 1 student where 100% of Title IV aid was returned, as management determined the student did not attend and assigned a withdrawal date of the first day of the term. Aid was disbursed in August and September 2022 and it was not returned until January 2023, exceeding the required timeframe. • For 4 students the Registrar did not maintain an Official Withdrawal Form or other supporting documentation to substantiate the withdrawal date used in the calculation. Questioned Cost: Unknown Effect: Aid was not returned timely, support was not maintained and incorrect amounts were returned. Cause: The Student Financial Aid office experienced turnover and the process to review the calculations was not completed. Repeat Finding: Yes Recommendation: We recommend that the University review and update its policies and procedures in place over processing and review of Return of Title IV Aid Calculations. Response: The University is actively reviewing and updating policies and procedures regarding Return to Title IV aid calculations. Data challenges are being addressed, and additional controls are now in place to ensure this is not a repeat finding moving forward. These include new personnel, additional training and system upgrades that ensure accurate and timely R2T4 processing. In addition, the University is recalculating R2T4 calculations covering this audit period as part of a separate engagement.

Corrective Action Plan

Corrective Action: The University is actively reviewing and updating policies and procedures regarding Return to Title IV aid calculations. Data challenges are being addressed, and additional controls are now in place to ensure this is not a repeat finding moving forward. These include new personnel, additional training and system upgrades that ensure accurate and timely R2T4 processing. In addition, the University is recalculating R2T4 calculations covering this audit period as part of a separate engagement. Responsible Person: Matthew Kirksey, Financial Aid Director Completion Date: December 31, 2026

Categories

Student Financial Aid

Other Findings in this Audit

  • 1226224 2023-018
    Material Weakness Repeat
  • 1226225 2023-019
    Material Weakness Repeat
  • 1226226 2023-019
    Material Weakness Repeat
  • 1226228 2023-020
    Material Weakness Repeat
  • 1226229 2023-021
    Material Weakness Repeat
  • 1226230 2023-021
    Material Weakness Repeat
  • 1226231 2023-021
    Material Weakness Repeat
  • 1226232 2023-022
    Material Weakness Repeat
  • 1226233 2023-023
    Material Weakness Repeat
  • 1226234 2023-024
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $10.86M
84.268 FEDERAL DIRECT STUDENT LOANS $10.28M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $5.81M
10.205 PAYMENTS TO 1890 LAND-GRANT COLLEGES AND TUSKEGEE UNIVERSITY $2.89M
10.512 EXTENSION SERVICES AT 1890 COLLEGES AND TUSKEGEE UNIVERSITY, WEST VIRGINIA STATE COLLEGE, AND CENTRAL STATE UNIVERSITY $2.35M
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $1.10M
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $750,713
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $608,038
10.524 SCHOLARSHIPS FOR STUDENTS AT 1890 INSTITUTIONS $595,113
84.042 TRIO STUDENT SUPPORT SERVICES $445,263
10.500 COOPERATIVE EXTENSION SERVICE $412,075
10.216 1890 INSTITUTION CAPACITY BUILDING GRANTS $403,825
84.120 MINORITY SCIENCE AND ENGINEERING IMPROVEMENT $345,462
84.047 TRIO UPWARD BOUND $309,891
84.033 FEDERAL WORK-STUDY PROGRAM $292,386
12.560 DOD, NDEP, DOTC-STEM EDUCATION OUTREACH IMPLEMENTATION $269,704
93.U02 Characterization of Chemical Constituents $205,692
11.028 CONNECTING MINORITY COMMUNITIES PILOT PROGRAM $184,858
10.311 BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM $106,627
10.514 EXPANDED FOOD AND NUTRITION EDUCATION PROGRAM $89,691
10.202 COOPERATIVE FORESTRY RESEARCH $88,389
93.658 FOSTER CARE TITLE IV-E $76,504
12.800 AIR FORCE DEFENSE RESEARCH SCIENCES PROGRAM $74,028
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $67,201
10.443 OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED AND VETERAN FARMERS AND RANCHERS $67,180
47.041 ENGINEERING $63,466
10.001 AGRICULTURAL RESEARCH BASIC AND APPLIED RESEARCH $56,875
20.701 UNIVERSITY TRANSPORTATION CENTERS PROGRAM $55,768
12.U01 Retrogressive Approach to Determine Fungal Biodegredation. $50,500
10.170 SPECIALTY CROP BLOCK GRANT PROGRAM - FARM BILL $46,661
10.902 SOIL AND WATER CONSERVATION $43,778
84.425 EDUCATION STABILIZATION FUND $39,975
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $39,135
10.515 RENEWABLE RESOURCES EXTENSION ACT $35,750
15.954 NATIONAL PARK SERVICE CONSERVATION, PROTECTION, OUTREACH, AND EDUCATION $35,588
84.027 SPECIAL EDUCATION GRANTS TO STATES $33,333
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $32,438
10.229 EXTENSION COLLABORATIVE ON IMMUNIZATION TEACHING & ENGAGEMENT $32,260
10.523 CENTERS OF EXCELLENCE AT 1890 INSTITUTIONS $27,890
10.960 TECHNICAL AGRICULTURAL ASSISTANCE $25,998
43.001 SCIENCE $18,300
10.912 ENVIRONMENTAL QUALITY INCENTIVES PROGRAM $14,747
12.360 RESEARCH ON CHEMICAL AND BIOLOGICAL DEFENSE $13,423
10.217 HIGHER EDUCATION - INSTITUTION CHALLENGE GRANTS PROGRAM $13,340
47.050 GEOSCIENCES $8,569
19.009 ACADEMIC EXCHANGE PROGRAMS - UNDERGRADUATE PROGRAMS $7,960
10.215 SUSTAINABLE AGRICULTURE RESEARCH AND EDUCATION $7,842
00.U03 Digitial Divide Grant $7,458
45.129 PROMOTION OF THE HUMANITIES FEDERAL/STATE PARTNERSHIP $2,000
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $-2,352