FAC Explorer

Finding 35902 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-13
Audit: 38070
Organization: Lyon College (AR)
Auditor: Williams-Keepers LLC

AI Summary

  • Core Issue: Timely reporting of student withdrawal statuses and return of Title IV funds is not being followed, leading to significant deficiencies.
  • Impacted Requirements: Compliance with 34 CFR 668.22 mandates reporting changes within 30 or 60 days and returning funds within 45 days.
  • Recommended Follow-Up: Develop and enforce policies for timely reporting and review of student status changes to ensure compliance.

Finding Text

Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found five (5) instances where changes in student status due to withdrawal were not reported timely and one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student?s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Also in accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school?s determination that the student has withdrawn. Effect of Condition: We found five (5) instances where changes in student status due to withdrawal were not reported timely and we one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow their attendance taking policy, which allows notification to the Financial Aid Office for students that may need to have a Title IV withdrawal calculation. Recommendation: We recommend the College develop policies and procedures to address this issue. These policies should require that an individual, separate from the reporting of enrollment status changes, review a listing of all students with enrollment status changes on a periodic basis to determine these changes and have been properly reported within the allotted time frame as required by the U.S. Department of Education. The College should also enforce its attendance taking policy to ensure that all student withdrawals are reported in a timely manner to the Financial Aid Office. Management?s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.

Corrective Action Plan

Finding 2022-002: Policies and Procedures Related to Withdrawals ? SFA Cluster (significant deficiency) Corrective Action: The ?Timely Reporting? issue resulted from a misunderstanding in the Registrar?s Office regarding the requirements of what had to be reported and by when. We have discussed this issue with that office?s personnel and established procedures designed to prevent it from happening in the future. The ?Funds Not Returned Timely? reflects continued improvements resulting from policies already established to enhance compliance with attendance reporting and tracking of those reports by the Registrar and Financial Aid Offices. The College will continue to reinforce compliance with the attendance monitoring and reporting policy, as well as refine procedures for active monitoring of those reports by these two offices. In particular, the process of evaluating whether students who are on the two-week absence report in any one class are in fact at risk of falling out of enrollment status overall. Proposed Completion Date: June 30, 2023

Categories

Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 35903 2022-003
    Significant Deficiency
  • 35904 2022-002
    Significant Deficiency
  • 35905 2022-003
    Significant Deficiency
  • 35906 2022-002
    Significant Deficiency
  • 35907 2022-003
    Significant Deficiency
  • 35908 2022-002
    Significant Deficiency
  • 35909 2022-003
    Significant Deficiency
  • 35910 2022-002
    Significant Deficiency
  • 35911 2022-003
    Significant Deficiency
  • 612344 2022-002
    Significant Deficiency
  • 612345 2022-003
    Significant Deficiency
  • 612346 2022-002
    Significant Deficiency
  • 612347 2022-003
    Significant Deficiency
  • 612348 2022-002
    Significant Deficiency
  • 612349 2022-003
    Significant Deficiency
  • 612350 2022-002
    Significant Deficiency
  • 612351 2022-003
    Significant Deficiency
  • 612352 2022-002
    Significant Deficiency
  • 612353 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.07M
84.063 Federal Pell Grant Program $1.05M
84.047 Trio_upward Bound $464,403
84.033 Federal Work-Study Program $102,778
84.425 Education Stabilization Fund $84,702
93.859 Biomedical Research and Research Training $79,607
84.007 Federal Supplemental Educational Opportunity Grants $57,712
43.008 Education $14,706
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $7,544
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $5,057
15.808 U.s. Geological Survey_ Research and Data Collection $800