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.