FAC Explorer

Finding 34270 (2022-008)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-29
Audit: 29056
Organization: Presbyterian College (SC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The College incorrectly returned unearned Title IV funds to the COD for a student withdrawal.
  • Impacted Requirements: Compliance with the Return of Title IV Funds regulations, specifically the calculation of aid earned versus disbursed.
  • Recommended Follow-Up: Implement timely reviews using R2T4 worksheets to ensure accurate calculations and returns.

Finding Text

Federal Program Information: Student Financial Assistance Cluster (Various ALN #?s) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions ? Return of Title IV Funds: When a recipient of a 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 or 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 as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. (34 CFR 668.22(a)(1) through (a)(5)). Once a student?s withdrawal date is determined the institution needs to calculate the percentage of the payment period or period of enrollment completed. The percentage of payment period or period of enrollment completed represents the percentage of aid earned by the student. Condition: Instance was identified where incorrect unearned amount was returned to the COD. Cause: Lack of administrative oversight with respect to Return of Title IV (?R2T4?) calculation. Effect: Error in Title IV funds returned to the COD. Questioned Costs: Amount below reportable threshold. Context: For 1 of 2 students selected for testing, the College did not return the correct amount to COD. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the College utilize R2T4 worksheets and complete timely review of R2T4 calculations. Views of Responsible Officials and Planned Corrective Actions: As of September 2022, the Office of Financial Aid began utilizing the R2T4 Worksheet found on COD. This more clearly and specifically states the net total that should be returned.

Corrective Action Plan

Individuals Responsible for Corrective Action Plan Jeff Scaccia, CPA (Vice President for Finance and Administration) Libby Shull, CPA (Controller) April Baur, (Director of Student Financial Aid) For 1 of 2 students selected for testing, the College did not return the correct amount to COD. Corrective Action Plan: As of September 2022, the Office of Financial Aid began utilizing the R2T4 Worksheet found on COD. This more clearly and specifically states the net total that should be returned. Anticipated Completion Date: September 1, 2022

Categories

Questioned Costs Special Tests & Provisions 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
10.766 Community Facilities Loans and Grants Cluster $58.41M
84.268 Federal Direct Student Loans $17.38M
84.063 Federal Pell Grant Program $1.40M
84.425 Covid-19 Higher Education Emergency Relief Fund (heerf) Student Portion $1.33M
84.425 Covid-19 Higher Education Emergency Relief Fund (heerf) - Institutional Portion $1.33M
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $326,944
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Administrative Core $172,635
84.033 Federal Work-Study Program $114,034
84.007 Federal Supplemental Educational Opportunity Grant $88,750
21.027 Coronavirus State and Local Fiscal Recovery Funds $60,000
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Determining the Mechanisms of Heat Shock Protein 90 Regulation of Morphine Tolerance $54,736
47.050 Rui: Characterization and Modeling Space Weather Geomagnetic Fluctuations $29,926
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Dna Methylation Patterns of Mammary Stem Cells As An Indicator of Breast Cancer Plasticity $19,642
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Administrative Supplement: Epigenetic and Mrna Translational Control Mediated by Adherens Protein Plekha7 $12,300
43.008 Mist 2021: Modeling Magnetic Storms $7,500
43.008 Undergraduate Student Research Award $7,500
84.379 Teacher Education Assistance for College and Higher Education Grants $3,772
43.008 Reap 2021-22: Dissemination of Research on Magnetospheric Ulf Waves $2,000
43.008 Space Grant Campus Director $1,500
84.038 Federal Perkins Loan Program $0