Finding 370275 (2022-004)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-02-23
Audit: 291887
Organization: Birmingham-Southern College (AL)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The College improperly calculated return amounts for Title IV funds for certain students who withdrew.
  • Impacted Requirements: Institutions must accurately determine and return Title IV funds within 45 days of a student's withdrawal.
  • Recommended Follow-Up: Enhance internal controls and procedures for calculating returns to ensure compliance and accuracy.

Finding Text

Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement: N. Special Test and Provisions – Return of Title IV Funds: When a recipient of 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. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn. Condition: The College did not prepare certain students’ return calculations properly. Cause: Administrative oversight and insufficient internal controls. Effect or Potential Effect: Over or underpayment of Title IV funds. Questioned Costs: Below reportable threshold. Context: For 3 of 4 students tested, the amounts to return were not calculated in accordance with the requirements. Identification as a Repeat Finding: This is a repeat of prior year Finding 2021-005. Recommendation: We recommend the College enhance its procedures and internal controls over the preparation and review of R2T4 calculations to ensure that return amounts are accurately determined. Views of Responsible Officials: The College agrees with this finding. The Return to Title IV calculation was off due to the denominator of total days being incorrectly counted. The Director of Financial Aid will calculate the total days for each semester to be used for the calculation and publish them in the annual policy and procedure manual. The current financial aid procedures have been updated.

Categories

Student Financial Aid Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 370262 2022-004
    Significant Deficiency Repeat
  • 370263 2022-007
    Significant Deficiency
  • 370264 2022-008
    Significant Deficiency
  • 370265 2022-007
    Significant Deficiency
  • 370266 2022-008
    Significant Deficiency
  • 370267 2022-005
    - Repeat
  • 370268 2022-002
    - Repeat
  • 370269 2022-003
    - Repeat
  • 370270 2022-004
    Significant Deficiency Repeat
  • 370271 2022-007
    Significant Deficiency
  • 370272 2022-008
    Significant Deficiency
  • 370273 2022-002
    - Repeat
  • 370274 2022-003
    - Repeat
  • 370276 2022-006
    -
  • 370277 2022-007
    Significant Deficiency
  • 370278 2022-008
    Significant Deficiency
  • 370279 2022-009
    Significant Deficiency Repeat
  • 370280 2022-010
    Significant Deficiency
  • 370281 2022-009
    Significant Deficiency Repeat
  • 946704 2022-004
    Significant Deficiency Repeat
  • 946705 2022-007
    Significant Deficiency
  • 946706 2022-008
    Significant Deficiency
  • 946707 2022-007
    Significant Deficiency
  • 946708 2022-008
    Significant Deficiency
  • 946709 2022-005
    - Repeat
  • 946710 2022-002
    - Repeat
  • 946711 2022-003
    - Repeat
  • 946712 2022-004
    Significant Deficiency Repeat
  • 946713 2022-007
    Significant Deficiency
  • 946714 2022-008
    Significant Deficiency
  • 946715 2022-002
    - Repeat
  • 946716 2022-003
    - Repeat
  • 946717 2022-004
    Significant Deficiency Repeat
  • 946718 2022-006
    -
  • 946719 2022-007
    Significant Deficiency
  • 946720 2022-008
    Significant Deficiency
  • 946721 2022-009
    Significant Deficiency Repeat
  • 946722 2022-010
    Significant Deficiency
  • 946723 2022-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.14M
84.425 Education Stabilization Fund $1.36M
84.063 Federal Pell Grant Program $1.20M
84.007 Federal Supplemental Educational Opportunity Grants $152,960
84.033 Federal Work-Study Program $122,905
47.074 Biological Sciences $12,850
10.912 Environmental Quality Incentives Program $4,186
84.038 Federal Perkins Loans $0