Finding 1603 (2023-001)

Improper Return of Title IV Financial Aid - Student Financial Aid Cluster Assistance Listing #s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379, 93.264 - Grant Period - Year Ended June 30, 2023 Criteria: According to 34 CFR 668.22 when a recipient of Title IV grant or loan assistance withdraws from a University during a payment period or period of enrollment in which the recipient began attendance, the University must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. Condition: During our Return of Title IV Fund testing, we noted that the University did not calculate properly or return Title IV Student Financial Aid in the required time frame for two out of twenty-five students we tested. We consider the untimely returns and incorrect calculations of the Return of Title IV to be an instance of noncompliance to the Special Tests and Provisions Compliance Requirement. This is also a repeat finding reported in Section IV Prior Year Financial Statement and Federal Award findings as 2022-001. Statistical sampling was not used when making sample selections. Questioned Costs: $2,716 Effect: The University did not calculate properly the amount of Title IV funds to be returned or return unearned Title IV Funds to the U.S. Department of Education within the required time frame for two out of the twenty-five students tested. Cause: The University s internal controls did not detect errors in the amount of Title IV Funds to be returned nor did they ensure that Title IV funds were returned in the required time frame. Recommendation: We recommend the University implement controls to verify the dates of attendance and resulting R2T4 calculation to ensure the accurate calculation and return of unearned aid. Views of Responsible Officials: Management agrees with this finding and response is included in Corrective Action Plan.