Finding 31861 (2022-002)

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Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-03
Audit: 27607
Organization: Stetson University, Inc. (FL)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The University failed to return Title IV funds for two students who withdrew, violating federal requirements.
  • Impacted Requirements: Compliance with Uniform Guidance for Student Financial Aid Programs, specifically regarding the return of unearned Title IV funds.
  • Recommended Follow-Up: Implement a review process to ensure all Title IV funds are accurately received and returned for withdrawn students.

Finding Text

Identification of the federal program: U.S. Department of Education Student Financial Aid Cluster Criteria or specific requirement: Uniform Guidance for Student Financial Aid (SFA) Programs {III. Compliance Requirements, N. Special Tests and Provisions, 3. Return of Title IV Funds? Compliance requirements (34 CFR 668.22 (a)(1) through (a)(5))} stipulates that 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student on their behalf as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs. Condition: The University did not properly return Title IV funds for two students who withdrew during fiscal year 2022. Cause: The University?s Banner system did not properly capture the required credit to the students? account. Effect or potential effect: Unearned Title IV funds are not properly returned. Questioned costs: None Context: We selected a total of 11 students who withdrew during the fiscal year to test that calculation of Title IV funds to be returned are properly performed and funds are received from students in compliance with Title IV standards. Two instances of noncompliance were identified in which funds were either not collected from the student or funds were incorrectly awarded after collection was made. Repeat finding: No Recommendation: We recommend management implement a review process to ensure that all Title IV funds are properly received for applicable withdrawn students. Views of responsible officials: The University agrees with the finding. Refer to the University?s Corrective Action Plan.

Corrective Action Plan

Identifying number: 2022-002 ? Return of Title IV Funds Identification of the federal program: U.S. Department of Education Student Financial Aid Cluster Finding: Criteria or specific requirement: Uniform Guidance for Student Financial Aid (SFA) Programs {III. Compliance Requirements, N. Special Tests and Provisions, 3. Return of Title IV Funds ? Compliance requirements (34 CFR 668.22 (a)(1) through (a)(5)))} stipulates that 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student on his or her behalf as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs. Anticipated Completion Date: Action Already Taken Person Responsible: Joanne Brown, AVP, Director of Student Financial Aid Corrective Actions Taken or Planned: The Office of Student Financial Aid, in accordance with federal regulations, reviews all student withdrawals if the student was a recipient of Title IV funds to determine the correct amount of earned financial aid. The calculation is prepared based on the date of notification of withdrawal. Of the sample tested, all calculations were performed accurately; however, on two records, the funds designated as return to program were not returned within the timeframe allowed resulting in a finding. Scheduled disbursements and un-disbursements performed as planned; however, the population selection was produced manually and failed to pick up the withdrawn status of the students which would have returned the funds to the programs. All Return to Title IV Calculations will be performed with an immediate, on-the-spot un-disbursement of funds to be returned. Log files will be reviewed and checked to ensure the updates are transmitted to the federal programs in a timely manner. In addition to the above steps, the Office of Student Financial Aid has begun an internal review of a sample of 2021-2022 R2T4 calculations to ensure calculations were performed accurately and return of Title IV funds were completed in a timely manner and in compliance with federal regulations.

Categories

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

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $47.09M
84.063 Federal Pell Grant Program $5.10M
84.425 Covid-19 Education Stabilization Fund $4.96M
84.038 Federal Perkins Loan Program $3.39M
84.007 Federal Supplemental Educational Opportunity Grants $686,813
97.036 Covid-19: Disaster Grants - Public Assistance (presidentially Declared Disasters) $618,158
84.033 Federal Work-Study Program $605,111
93.732 Mental and Behavioral Health Education and Training Grants $190,813
16.738 Edward Byrne Memorial Justice Assistance Grant Program $96,680
47.076 Education and Human Resources $69,857
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $68,717
11.417 Sea Grant Support $45,488
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $37,720
15.931 Conservation Activities by Youth Service Organizations $20,000
11.419 Coastal Zone Management Administration Awards $19,000
47.074 Biological Sciences $15,258
66.462 National Wetland Program Development Grants and Five-Star Restoration Training Grant $4,290