Finding 369072 (2022-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-14
Audit: 290469
Organization: Wheeling Jesuit University INC (WV)

AI Summary

  • Core Issue: The University failed to return unearned Title IV funds to students due to incomplete calculations.
  • Impacted Requirements: This violates Title IV regulations, leading to non-compliance with federal requirements.
  • Recommended Follow-Up: Update refund procedures and ensure timely calculations and disbursements, while hiring qualified staff for the financial aid office.

Finding Text

Finding 2022-006 - Significant Deficiency - Return of Title IV Funds Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loan Program, Federal Pell Grant Program Federal Agency: U.S. Department of Education Assistance Listing Number: 84.268, 84.063 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.22) require the University to return the unearned portion of grants or loans to the student based the calculated percent completed by the student. Condition: Calculations of return of funds for certain students selected for testing were not completed and therefore refunds were not made. Cause: Lack of competency and turnover in the financial aid office contributed to the University not completing the required return calculations. Effect: Students did not receive proper refunds and the University was not in compliance with federal requirements. Questioned Costs: The total amount that was under-refunded to students was $5,055. Context: Calculations for 4 out of 5 students selected for testing were not completed. The sample was not a statistically valid sample. Recommendation: The University should modify its procedures for refunding awards to ensure the proper refund is calculated correctly, as well as disbursing refunds in a timely manner. Management's Response: Management agrees with this finding and has recognized their need for a qualified individual who is knowledgeable about financial aid requirements.

Corrective Action Plan

FINDING 2022 – 006: Type of Finding: Significant Deficiency-Return of Title IV Funds Name of Responsible Individual: Joyce Lubeck-Sonenberg, Acting Director of Financial Aid Criteria: Title IV regulations (34 CFR 668.22) require the University to return the unearned portion of grants or loans to the student based the calculated percent completed by the student. Condition: Calculations of return of funds for certain students selected for testing were not completed and therefore refunds were not made. Corrective Action: Audit results identify several Wheeling University Financial Aid R2T4 calculations that were found to be incomplete, inaccurate, or not completed within an acceptable time frame as required by regulations. The apparent cause of these findings was a lack of administrative capability, staff turnover, and a general lack of a systematic process for completing accurate R2T4 calculations. Since these findings were first noted, the Wheeling University Financial Aid Office has added competent staff and has provided sufficient training and supervised experience to ensure R2T4 calculations are completed within the regulatory guidelines. The acting Director of Financial Aid has taken steps to ensure to inform the campus community of the Department’s philosophy of an “institutional responsibility” regarding regulatory compliance with Title IV programs, and this is particularly true in the matter of student FA eligibility with enrollment, attendance, and withdrawal. As such, the acting Director of Financial Aid has worked closely with the University Registrar to ensure there is a clear understanding that if a recipient of Title IV grant or loan funds withdraws from the University after beginning attendance, the FA Office must perform an R2T4 calculation to determine the amount of Title IV assistance earned by the student. Since withdrawal information is critical to R2T4 calculations, a Withdrawal Report has been developed to better capture withdrawal data. This report is updated and reviewed by the FA Director (three times per week) to confirm the accuracy of such data. In addition, all R2T4 calculations are completed on the University's internal software (Colleague) rather than DOE software and follow an updated, more clearly defined R2T4 policy. Anticipated Completion Date: This process was completed September of 2023 and is ongoing.

Categories

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 369070 2022-005
    Material Weakness Repeat
  • 369071 2022-005
    Material Weakness Repeat
  • 369073 2022-002
    Significant Deficiency Repeat
  • 369074 2022-003
    - Repeat
  • 369075 2022-004
    -
  • 369076 2022-006
    Significant Deficiency
  • 369077 2022-007
    Significant Deficiency Repeat
  • 369078 2022-007
    Significant Deficiency Repeat
  • 369079 2022-008
    -
  • 369080 2022-008
    -
  • 369081 2022-009
    - Repeat
  • 369082 2022-009
    - Repeat
  • 945512 2022-005
    Material Weakness Repeat
  • 945513 2022-005
    Material Weakness Repeat
  • 945514 2022-006
    Significant Deficiency
  • 945515 2022-002
    Significant Deficiency Repeat
  • 945516 2022-003
    - Repeat
  • 945517 2022-004
    -
  • 945518 2022-006
    Significant Deficiency
  • 945519 2022-007
    Significant Deficiency Repeat
  • 945520 2022-007
    Significant Deficiency Repeat
  • 945521 2022-008
    -
  • 945522 2022-008
    -
  • 945523 2022-009
    - Repeat
  • 945524 2022-009
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.17M
84.038 Federal Perkins Loan Program $1.27M
84.063 Federal Pell Grant Program $882,038
93.859 Biomedical Research and Research Training $243,170
84.425 Education Stabilization Fund $178,333
84.007 Federal Supplemental Educational Opportunity Grants $118,500
84.033 Federal Work-Study Program $94,730
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,088
93.364 Nursing Student Loans $2,025