Finding 21815 (2022-002)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-11-29

AI Summary

  • Core Issue: One refund calculation for a drop student was incorrect, leading to non-compliance with federal regulations.
  • Impacted Requirements: The institution failed to follow the Return to Title IV refund calculation as mandated by 34 CFR 668.22.
  • Recommended Follow-Up: Return $1,592 to the Department of Education and enhance controls over refund calculations to prevent future errors.

Finding Text

FINDING 2022-002: INCORRECT REFUND CALCULATION FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM AND FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 & 84.063 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested twelve drop students and found one incorrect refund calculation. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an error in Steps 1 and 5 of the Return to Title IV refund calculation. Effect: As a result, the Institution is holding funds that need to be returned to the Department. Question Costs: $1,592 Statistical sampling was not used when making sample selections. See Schedule of Findings and Questioned Costs for chart/table Recommendation: We recommend the Institution return $1,592 to the Department of Education and increase controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

Finding 2022-002 ? Incorrect Refund Calculation: During the audit, one student had an incorrect refund calculation resulting in $1,592 that should be returned to the Department of Education. The Institution agrees with the finding. The erroneous action happened due to administrative oversight, the refunds to the Department have been completed in the amount of $211.00 Pell grant and $1,381 in Subsidized Direct loan funds. The school understands the importance of calculating the Title IV refund correctly, as a new financial aid administrator and director move into these roles, more oversight from the director position will be initiated.

Categories

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

Other Findings in this Audit

  • 21816 2022-003
    - Repeat
  • 21817 2022-001
    - Repeat
  • 21818 2022-002
    -
  • 21819 2022-003
    - Repeat
  • 21820 2022-004
    Material Weakness
  • 21821 2022-005
    Material Weakness
  • 21822 2022-006
    Material Weakness
  • 21823 2022-007
    Material Weakness
  • 21824 2022-008
    Material Weakness
  • 21825 2022-004
    Material Weakness
  • 21826 2022-005
    Material Weakness
  • 21827 2022-006
    Material Weakness
  • 21828 2022-007
    Material Weakness
  • 21829 2022-008
    Material Weakness
  • 598257 2022-002
    -
  • 598258 2022-003
    - Repeat
  • 598259 2022-001
    - Repeat
  • 598260 2022-002
    -
  • 598261 2022-003
    - Repeat
  • 598262 2022-004
    Material Weakness
  • 598263 2022-005
    Material Weakness
  • 598264 2022-006
    Material Weakness
  • 598265 2022-007
    Material Weakness
  • 598266 2022-008
    Material Weakness
  • 598267 2022-004
    Material Weakness
  • 598268 2022-005
    Material Weakness
  • 598269 2022-006
    Material Weakness
  • 598270 2022-007
    Material Weakness
  • 598271 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.89M
84.425 Education Stabilization Fund $460,753
84.063 Federal Pell Grant Program $408,794
84.007 Federal Supplemental Educational Opportunity Grants $23,390