Finding 204843 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-04
Audit: 174176
Organization: Buena Vista University (IA)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The University failed to remit a student refund within the required 45-day timeframe after determining withdrawal.
  • Impacted Requirements: Compliance with federal regulations for the timely return of Title IV funds (34 CFR 668.173(b)).
  • Recommended Follow-Up: Implement additional review procedures to ensure all refunds are processed on time, especially during software transitions.

Finding Text

2022-001 Student Financial Assistance Cluster U.S. Department of Education Federal Student Direct Loans CFDA 84.268 Federal Pell Grant Program 84.063 Award Year 2022 Criteria or Specific Requirement ? Special Tests and Provisions: Return of Title IV Funds - Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew (34 CFR 668.173(b)). Condition ? The University did not remit a refund within the required 45 day period. Questioned Costs ? None. Context ? Out of a population of 90 students who ceased attendance during a payment period or a period of enrollment, dropped, on a leave of absence, never began attendance, or terminated during the audit period, we selected a sample of nine students to ascertain if returns of Title IV funds were properly calculated and remitted. We noted one instance in which the University remitted the properly calculated refund after the required 45 day period. The sampling methodology was not intended to be a statistically valid sample. Effect ? The student?s refund was submitted late for one student out of the nine tested. Cause ? Management oversight during a software transition period. Identification as a Repeat Finding ? N/A Recommendation ? The University should implement additional review procedures to ensure that all calculated refunds are made within the 45 day period. Views of Responsible Officials and Planned Corrective Actions ? The error occurred during a software transition and data freeze period. This was a unique occurrence and has been remedied through an updated system report running on an automated schedule.

Corrective Action Plan

2022 Corrective Action Plan Finding Reference Number 2022-001 Contact Person - Patti Demers, Director of Financial Assistance Cause - In October 2021, Buena Vista University changed ERP/SIS software platforms. During the software conversion from the old database to the new database there was a period of 10 days in which no new data could be entered by staff. After the new database came online there were some standard reports that were not running as expected, including one that identifies students that have withdrawn from courses and need a Return to Title IV Funds calculated. As a result, the calculation was not completed within the required time period for a small number of withdrawn students. Current Status - All reports that alert staff to course withdrawals have been corrected and are now running on a regular basis so the necessary offices are alerted to the changes in a timely manner. Views of Responsible Officials and Planned Corrective Action -The error occurred during a software transition and data freeze period. This was a unique occurrence and has been remedied through updated system reports running on an automated schedule. Anticipated Completion Date -Already completed.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $14.01M
84.063 Federal Pell Grant Program $3.67M
84.425 Covid-19 Higher Education Emergency Relief Fund - Student Portion $2.21M
84.038 Federal Perkins Loan Program $1.15M
84.425 Covid-19 Higher Education Emergency Relief Fund - Institutional Portion $1.07M
84.425 Covid-19 Higher Education Emergency Relief Fund - Strengthening Institutions $170,075
84.007 Federal Supplemental Educational Opportunity Grants $161,025
84.033 Federal Work-Study Program $140,216
47.076 Education and Human Resources $139,912
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $117,402
93.865 Child Health and Human Development Extramural Research $60,461