Finding 1228299 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-28

AI Summary

  • Core Issue: One out of four refund calculations for drop students was incorrect, using seven days instead of the required nine.
  • Impacted Requirements: This non-compliance with the Return to Title IV refund calculation (34 CFR 668.22) led to students receiving incorrect Federal Direct Loan amounts.
  • Recommended Follow-Up: Refund $12 to the Department of Education and strengthen controls over refund calculations.

Finding Text

Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22) Condition: We tested eight drop students, four of which required the spring break nine day period, and found one incorrect refund calculation that used seven days instead of the required nine. We consider this to be an instance of non-compliance. Cause: The condition was caused by using incorrect break dates within step 2 of the return to title iv calculation to determine total completed and total days within semester. Effect or Potential Effect: The result is students received incorrect Federal Direct Loan amounts. Questioned Costs: $12 Recommendation: We recommend the Institution refund $12 to the Department of Education, and increase controls over refund calculations. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Condition: We tested eight drop students and found one incorrect refund calculations. We consider this to be an instance of non-compliance. Corrective Action Plan Procedure Revision and Clarification The Financial Aid Office has updated its R2T4 procedures to clearly define how scheduled breaks are arranged. Procedures now specify that break periods must include all consecutive days between the last day of class before the break and the day before classes resume, including applicable weekend days. This aligns with federal guidance that scheduled breaks of five or more consecutive days must include interven ing weekends when no classes are held. Standardized Academic Calendar Usage A standardized, institutionally approved academic calendar has been implemented for R2T4 calculations. This calendar explicitly identifies: • Start and end dates of all scheduled breaks • Inclusion of weekend days where applicable Staff will use this calendar when determining both total and completed days in Step 2 of the R2T4 calculation. R2T4 Calculation Checklist Implementation A mandatory checklist has been implemented for all R2T4 calculations to ensure: • Accurate identification of scheduled breaks greater than 5 consecutive days • Inclusion of all appropriate days, including prior weekends when applicable • Correct calculation of both completed and total days Staff Training All financial aid staff have completed targeted training on R2T4 calculation requirements, with emphasis on: • Proper identification and treatment of scheduled breaks • Inclusion of weekends as part of a break when classes are not in session • Accurate completion of Step 2 of the R2T4 calculation Secondary Review Process A secondary review by another staff member is now required for all R2T4 calculations prior to finalization . This review specifically verifies the accuracy of break dates and day counts. Ongoing Monitoring and Quality Assurance The Financial Aid Office will conduct periodic internal audits of R2T4 calculations to ensure compliance with federal regu lations. Any discrepancies will be corrected immediately and used as part of continuous staff training. Responsible Person for Correction Action Plan: Alexis Brown, Director of Financial Aid Implementation Date for Corrective Action Plan: 03/25/26

Categories

Student Financial Aid

Other Findings in this Audit

  • 1228282 2025-002
    Material Weakness Repeat
  • 1228283 2025-003
    Material Weakness Repeat
  • 1228284 2025-004
    Material Weakness Repeat
  • 1228285 2025-005
    Material Weakness Repeat
  • 1228286 2025-002
    Material Weakness Repeat
  • 1228287 2025-003
    Material Weakness Repeat
  • 1228288 2025-004
    Material Weakness Repeat
  • 1228289 2025-005
    Material Weakness Repeat
  • 1228290 2025-002
    Material Weakness Repeat
  • 1228291 2025-003
    Material Weakness Repeat
  • 1228292 2025-004
    Material Weakness Repeat
  • 1228293 2025-005
    Material Weakness Repeat
  • 1228294 2025-002
    Material Weakness Repeat
  • 1228295 2025-003
    Material Weakness Repeat
  • 1228296 2025-004
    Material Weakness Repeat
  • 1228297 2025-005
    Material Weakness Repeat
  • 1228298 2025-002
    Material Weakness Repeat
  • 1228300 2025-004
    Material Weakness Repeat
  • 1228301 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $2.46M
84.063 FEDERAL PELL GRANT PROGRAM $1.46M
84.033 FEDERAL WORK-STUDY PROGRAM $901,487
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $28,762
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $16,000