Finding 32392 (2022-004)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-29
Audit: 27062
Organization: Cabrini University (PA)

AI Summary

  • Core Issue: The University made an input error in the R2T4 calculation, using the gross instead of the net amount for Parent Plus disbursements.
  • Impacted Requirements: This affects compliance with Department of Education regulations on calculating and returning unearned Title IV funds.
  • Recommended Follow-Up: The University should review all R2T4 calculations to ensure accurate net disbursement amounts are used for Title IV aid.

Finding Text

2022-004 ? Return of Title IV (R2T4) Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.268 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Per Department of Education (ED) regulations, an institution must calculate the amount of earned Title IV funds by applying a percentage to the total amount of Title IV program assistance that was disbursed and that could have been disbursed. An institution must return to ED unearned funds for which it is responsible when determination is made of a student?s withdrawal (34 CFR 668.22(g)). Condition: During our testing it was noted that the incorrect amount was inputted into the R2T4 calculation for Parent Plus net disbursement. Questioned Costs: $158 Context: During our testing, we noted 1 out of 7 instances where the University mistakenly put the gross amount disbursed for Parent Plus instead of the net amount disbursed into the R2T4 calculation. Cause: There was an input error in the R2T4 calculation. Effect: The University did not complete an accurate calculation as defined by Federal Regulations. Repeat Finding: No. Recommendation: We recommend the University review all R2T4 calculations to ensure the correct net disbursed amounts are entered for all Title IV aid. Views of Responsible Officials: Management agrees with the finding and has developed a plan to correct the finding.

Corrective Action Plan

2022-004 Student Financial Assistance Cluster ? Assistance Listing No. 84.268 Recommendation: We recommend the University review all R2T4 calculations to ensure the correct net disbursed amounts are entered for all Title IV aid. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Office of Financial Aid will recalculate the R2T4 with the correct net disbursement amount and request the additional funding directly through COD. Going forward, the Office of Financial Aid will perform a secondary review of all R2T4 calculations prior to processing for accuracy. Name(s) of the contact person(s) responsible for corrective action: Robert Forest, Director of Financial Aid Planned completion date for corrective action plan: March 30, 2023

Categories

Questioned Costs Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32391 2022-002
    Significant Deficiency Repeat
  • 32393 2022-003
    Significant Deficiency Repeat
  • 32394 2022-002
    Significant Deficiency Repeat
  • 608833 2022-002
    Significant Deficiency Repeat
  • 608834 2022-004
    Significant Deficiency
  • 608835 2022-003
    Significant Deficiency Repeat
  • 608836 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $11.23M
84.063 Federal Pell Grant Program $2.52M
84.038 Federal Perkins Loan Program $624,644
84.365 English Language Acquisition State Grants $235,730
84.425 Education Stabilization Fund $223,985
84.007 Federal Supplemental Educational Opportunity Grants $141,000
84.033 Federal Work-Study Program $90,798
47.076 Education and Human Resources $74,963
45.149 Promotion of the Humanities_division of Preservation and Access $57,123
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $54,271
84.016 Undergraduate International Studies and Foreign Language Programs $9,821
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $3,772