Finding 369421 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-15
Audit: 290607
Organization: Newberry College (SC)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The College inaccurately returned Title IV funds when students withdrew, leading to discrepancies in federal aid amounts.
  • Impacted Requirements: This violates 34 CFR 668.22, resulting in questioned costs of $7,324.
  • Recommended Follow-Up: Implement regular reviews of Title IV returns to ensure accurate calculations and timely submissions to the Department of Education.

Finding Text

Inaccurate Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Loans, 84.063 Federal Pell Grants, and 84.007 Federal Supplemental Education Opportunity Grant Program Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew either officially or unofficially, the College did not always accurately return unearned Title IV aid. Criteria: 34 CFR 668.22 Questioned Costs: $7,324 Context: Out of 18 students tested for accurate return of Title IV funding, there were 6 students whose return to Title IV amount did not reflect the amount calculated on the Return to Title IV form. This oversight resulted in an additional $1,429 in PLUS Loans, $1550 in Subsidized Loans, $2,970 in Unsubsidized Loans, and $1,375 in Pell to be returned to the Department of Education (the Department). The College returned all funds to the Department during the course of the audit. Additionally, of these 18 students, there were 3 whose returns were late. Cause: Oversight by the College. Effect: Incorrect amounts of federal funding were returned. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College implement a review of returns on a regular basis to ensure that the amounts calculated on the Return to Title IV form reconcile with what was returned on the student’s account and what was returned to the Department. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Student Financial Aid Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $24.29M
84.268 Federal Direct Student Loans $10.09M
84.063 Federal Pell Grant Program $3.46M
84.425 Covid-19 Education Stabilization Fund Heerf - Strengthening Institutions Program $377,730
84.007 Federal Supplemental Educational Opportunity Grants $169,094
84.033 Federal Work-Study Program $103,200
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $7,544