Finding 25369 (2022-006)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-09
Audit: 25035
Organization: Donnelly College (KS)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The College used incorrect dates for calculating student refunds, leading to an inaccurate post-withdrawal disbursement for one student.
  • Impacted Requirements: This affects compliance with Title IV aid regulations regarding the return of funds when a student withdraws.
  • Recommended Follow-Up: Implement a procedure to review and confirm scheduled breaks annually to ensure accurate refund calculations.

Finding Text

Student Financial Assistance Cluster U.S. Department of Education Federal Pell Grant Program 84.063 Award Year 2022 Criteria or Specific Requirement - Special Tests and Provisions: Return of Title IV Funds - When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date and any refund of aid requirement (34 CFR 668.22(a)(1) through (a)(5)). Condition - The College utilized incorrect dates for calculation of a student?s refund, resulting in a variance in calculation of the student?s post-withdrawal disbursement. Questioned Costs - Error resulted in questioned costs of $9 for the Federal Pell Grant Program (ALN 84.063), calculated by independent recalculation of the student?s post-withdrawal disbursement. Context - Out of a population of nine that withdrew and had received federal aid, a sample of two students was selected for testing. During our testing, one student's refund calculation utilized incorrect dates, causing an error in the refund calculation. One other student?s refund calculation used an incorrect date; however, the student?s refund calculation was not impacted by the error. The sampling method was not, and was not intended to be, a statistically valid sample. Effect - The student?s post-withdrawal disbursement was calculated incorrectly for one student out of the two tested. Cause - Management oversight of the control in place to determine scheduled breaks. Identification as a Repeat Finding - No Recommendation - The College should have a procedure to review and lock down the scheduled breaks each year to determine the proper number of days for any refund calculations. Views of Responsible Officials and Planned Corrective Actions - 21-22 semester dates were input incorrectly by a previous DFA and have now been corrected for the 22-23 school year to reflect DOE (per FSA handbook) requirements.

Corrective Action Plan

Finding Reference 2022-006 Contact Person: Stephani Berry Views of Responsible Officials and Planned Corrective Action: 21-22 semester dates were input incorrectly by a previous DFA and have now been corrected for the 22-23 school year to reflect DOE (per FSA handbook) requirements. Anticipated Completion Date: December 8, 2022

Categories

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

Other Findings in this Audit

  • 25363 2022-002
    Significant Deficiency Repeat
  • 25364 2022-003
    Significant Deficiency Repeat
  • 25365 2022-004
    Significant Deficiency Repeat
  • 25366 2022-005
    Significant Deficiency
  • 25367 2022-002
    Significant Deficiency Repeat
  • 25368 2022-004
    Significant Deficiency Repeat
  • 25370 2022-007
    Significant Deficiency
  • 25371 2022-008
    Significant Deficiency Repeat
  • 25372 2022-010
    Significant Deficiency
  • 25373 2022-009
    Significant Deficiency
  • 601805 2022-002
    Significant Deficiency Repeat
  • 601806 2022-003
    Significant Deficiency Repeat
  • 601807 2022-004
    Significant Deficiency Repeat
  • 601808 2022-005
    Significant Deficiency
  • 601809 2022-002
    Significant Deficiency Repeat
  • 601810 2022-004
    Significant Deficiency Repeat
  • 601811 2022-006
    Significant Deficiency
  • 601812 2022-007
    Significant Deficiency
  • 601813 2022-008
    Significant Deficiency Repeat
  • 601814 2022-010
    Significant Deficiency
  • 601815 2022-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.031 Higher Education Institutional Aid $1.87M
84.063 Federal Pell Grant Program $982,270
84.425 Covid-19 - Education Stabilization Fund - Institutional Portion $589,866
84.268 Federal Direct Student Loans $517,992
84.425 Covid-19 - Education Stabilization Fund - Student Portion $398,972
45.130 Promotion of the Humanities_challenge Grants $370,000
84.042 Trio_student Support Services $332,680
84.120 Minority Science and Engineering Improvement $161,918
84.033 Federal Work-Study Program $61,508
84.007 Federal Supplemental Educational Opportunity Grants $59,724
47.076 Stem Education (formerly Education and Human Resources) $11,050
84.425 Covid-19 Education Stabilization Fund - Minority Serving Institutions $5,000