Finding 370532 (2023-002)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-26
Audit: 292194
Organization: Lenoir-Rhyne University (NC)
Auditor: Bdo USA PC

AI Summary

  • Issue: The University failed to return credit balances to students within the required 14-day timeframe.
  • Impact: This oversight puts the University out of compliance with federal regulations.
  • Follow-up: Enhance procedures to ensure timely returns of credit balances to avoid future compliance issues.

Finding Text

Federal Program Information: Student Financial Assistance Cluster: Federal Supplemental Education Opportunity Grants (Assistance Listing #84.007), Federal Work-Study Program (Assistance Listing #84.033), Federal Pell Grant Program (Assistance Listing #84.063), Federal Direct Loan Program (Assistance Listing #84.268) Criteria or Specific Requirement: N. Special Tests and Provisions –Return of Credit Balances: Federal Regulations require credit balances to returned to students with 14 days of the credit being created on the students account. Condition: The University did not return credit balances to students within the required timeframe. Cause: Administrative oversight. Effect or Possible Effect: The University was not in compliance with federal regulations regarding the timing of return of credit balances. Questioned Costs: None. Context: Based on a sample of 25 students, 1 student selected had a credit balance that was not returned within the 14 day period. Recommendation: We recommend that the University enhance its procedures to ensure timely return of credit balances to students. Views of Responsible Officials: The University agrees with the finding - refer to the University’s Corrective Action Plan.

Corrective Action Plan

Name of Responsible Individual: Jeremy Shreve, Vice President of Business & Finance. Corrective Action: The University recognized that while the two students who were not issued refunds timely were unique situations, there needs to be better checks and balances in place to ensure all credit balances are properly refunded to students within the 14-day required period. One of the late refunds was caused due to untimely posting of financial aid awards in the student accounts office, as it was not within a traditional awarding window. In response to this concern, the Director of Student Accounts will more frequently post financial aid awards on sudent accounts, once a week at a minimum. The other late refund was caused by a student who did not properly set up their eRefund, which caused the payment to not be issued properly through the bank. To address this issue, the Director of Student Accounts is working with the IT department to create a reporting mechanism to identify what students are proprly signed up for eRefunds and cross-check them against the eRefund payment list before sending. This will identify any student not properly set up for the eRefund. Additionally, the Controller's office has a reconciliation process wherein any eRefund that is not issued from the bank properly should be identified. Unfortunately, this reconcilation process has not been performed frequently enough to catch all instances. The Controller's office has changed that to be performed on a weekly basis to ensure all instances are caught in time to be rectified before the 14-day period is over. Anticipated Completion Date: 1/31/2024.

Categories

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 370528 2023-001
    Significant Deficiency Repeat
  • 370529 2023-001
    Significant Deficiency Repeat
  • 370530 2023-001
    Significant Deficiency Repeat
  • 370531 2023-001
    Significant Deficiency Repeat
  • 370533 2023-002
    -
  • 370534 2023-002
    -
  • 370535 2023-002
    -
  • 946970 2023-001
    Significant Deficiency Repeat
  • 946971 2023-001
    Significant Deficiency Repeat
  • 946972 2023-001
    Significant Deficiency Repeat
  • 946973 2023-001
    Significant Deficiency Repeat
  • 946974 2023-002
    -
  • 946975 2023-002
    -
  • 946976 2023-002
    -
  • 946977 2023-002
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $18.64M
84.063 Federal Pell Grant Program $3.10M
84.425 Education Stabilization Fund $2.17M
84.007 Federal Supplemental Educational Opportunity Grants $323,794
84.033 Federal Work-Study Program $134,554