FAC Explorer

Finding 21866 (2022-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-18
Audit: 18645
Organization: Midwives College of Utah (UT)
Auditor: Sikich LLP

AI Summary

  • Core Issue: Incorrect refund calculations for two out of thirteen drop students, indicating a significant deficiency.
  • Impacted Requirements: Compliance with the Return to Title IV refund calculation as per federal regulations (34 CFR 668.22).
  • Recommended Follow-Up: Credit $304 to affected students' accounts and improve controls over refund calculations to prevent future errors.

Finding Text

FINDING 2022-002: INCORRECT REFUND CALCULATIONS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN#: 84.063 FEDERAL AWARD YEAR: YEAR ENDED DECEMBER 31, 2022 Compliance Requirement: Special Tests and Provisions - Return of Title IV Funds (N.) Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested thirteen drop students and found two incorrect refund calculation. We consider this finding to be a significant deficiency. This is a repeat of prior year Finding 2021-003. Cause: The condition was caused by not properly adjusting days for a break at Step 2 of the Return to Title IV refund calculation. Effect: The result is the Institution returned funds to the Department of Education that should have been retained by the Institution. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for table. Recommendation: We recommend the Institution credit $304 to the students' accounts and tighten 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

A. Comments on Findings and Recommendations: 2022-002 - Incorrect Refund Calculations. This seems like a simple administrative error surrounding the break and that the break should have been included. The Financial Aid Operations Administrator was still in their final R2T4 training phase at this point in 2022, having taken on the task during the prior year. B. Actions Taken or Planned: 2022-002 - Incorrect Refund Calculations. The Financial Aid Department has updated their internal procedures for R2T4's to make them even more robust, adding further emphasis on the scheduled trimester break section within its R2T4 template. This should help further mitigate the risk of mix up when performing a few at the same time. MCU will refund the resulting overage to the student.

Categories

Student Financial Aid Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $810,644
84.063 Federal Pell Grant Program $476,211