Finding 2176 (2023-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-11-20
Audit: 3747
Organization: Arlington Baptist University (CO)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Seven students had incorrect calculations of returned funds due to incorrect calendar setups by a third-party administrator.
  • Impacted Requirements: This finding violates 34 CFR 668.22, leading to incorrect returns of unearned Title IV funds.
  • Recommended Follow-Up: The University should review and correct calendar setups to ensure accurate R2T4 calculations moving forward.

Finding Text

Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: There were 7 incorrect calculations of returned funds for students that withdrew during the term due to incorrect calendar setups. Criteria: 34 CFR 668.22 Questioned Costs: $-0- Context: Out of 10 students, 7 students who withdrew during the audit period tested had incorrect funds returned due to incorrect calendar setups resulting in $254 of Pell and $185 of Federal Direct Loans returned more than required. Because of the error rate but immaterial dollar amounts, this is classified as a significant deficiency. Cause: The University uses a third party administrator to assist in processing R2T4’s. The third party administrator had incorrect calendar setups which resulted in all students completing less than 60% of the semester having an incorrect return. Effect: Incorrect amount of unearned Title IV funds returned. Identification as repeat finding, if applicable: Yes, 2022-001, 2021-003, 2020-006, 2019-005, and 2018-005. Recommendation: We recommend the University review the calendar setups and ensure the proper number of days are used in the calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Return of Title IV (R2T4) Calculations Planned Corrective Action: Set the calendar to match academic calendar and set up for awarding in COD. Person Responsible for Corrective Action Plan: Stephanie Castillo, Director of Financial Aid Anticipated Date of Completion: Fall 2023.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Significant Deficiency

Other Findings in this Audit

  • 2175 2023-001
    Material Weakness Repeat
  • 2177 2023-002
    Significant Deficiency Repeat
  • 2178 2023-003
    -
  • 2179 2023-004
    -
  • 578617 2023-001
    Material Weakness Repeat
  • 578618 2023-002
    Significant Deficiency Repeat
  • 578619 2023-002
    Significant Deficiency Repeat
  • 578620 2023-003
    -
  • 578621 2023-004
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.72M
84.063 Federal Pell Grant Program $541,747
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $243,261
84.425 Covid-19 Education Stabilization Fund Heerf - Strengthening Institutions $30,794
84.425 Covid-19 Education Stabilization Fund Heerf - Fund for the Improvement of Postsecondary Education Formula Grant $26,082
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $10,949