Finding 22391 (2022-002)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-29
Audit: 21183
Organization: Kansas Christian College (KS)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The College miscalculated unearned Title IV funds for three out of 14 students tested, leading to incorrect returns.
  • Impacted Requirements: This finding violates 34 CFR 668.22, affecting compliance with federal financial aid regulations.
  • Recommended Follow-Up: Assign a qualified financial aid staff member to regularly review R2T4 calculations to improve oversight and ensure compliance.

Finding Text

Inaccurate Return of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: 84.063 Pell Grants and 84.268 Federal Direct Loans Federal Award Identification: 2021-2022 Award Year Condition: The College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $550 Context: Out of 14 students tested for withdrawal compliance, three students had incorrect R2T4 calculations. The calculations used the incorrect number of completed days or total days. Two of the calculations should have had more Pell Grant returned totaling $295. One of the calculations should have had less Federal Direct Loan returned totaling $255. Cause: Lack of oversight and adequate review. Effect: Incorrect amount of unearned Title IV funds returned. Identification as repeat finding, if applicable: Yes, 2021-004 and 2020-003. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over the process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management is in agreement with this finding. See attached corrective action plan.

Corrective Action Plan

Inaccurate Return of Title IV Funds (R2T4) Planned Corrective Action: A master schedule has been created that includes the starting date, ending date, and break dates for each term. The break dates provided and used previously were not accurate and the master schedule provides the document all departments will use going forward. This will fix the issue involving the incorrect number of days used in the R2T4 calculations. Per the auditor?s recommendations, the institution has hired an experienced professional with over fifteen years of experience in Title IV processing to complete the R2T4 calculations. Person Responsible for Corrective Action Plan: Wes Brothers, Financial Aid Director Anticipated Date of Completion: Completed 3/9/2023

Categories

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $957,626
84.063 Federal Pell Grant Program $590,311
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $280,138
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $250,523