Finding Text
Assistance Listing, Federal Agency, and Program Name - ALNs 84.063, 84.268 and 84.007; Department of Education; Federal Pell Grant Program, Federal Direct Loan Program and Federal Supplemental Educational Opportunity Grant Program
Federal Award Identification Number and Year - N/A
Pass-through Entity - N/A
Finding Type - Significant deficiency
Repeat Finding - No
Criteria - Post-withdrawal disbursements must be made from available grant funds before available loan funds (34 CFR 668.22(a)(6)). Any grant funds not disbursed to the student's account must be disbursed to the student no later than 45 days after the date of the institution’s determination that the student withdrew (34 CFR 668.22(a)(6)(ii)(B)(1 )).
Condition - The University did not disburse the grant funds within the required time frame for certain students who required a post-withdrawal disbursement.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - Of the 25 withdrawn students tested for proper return of Title IV funds, the funds for 2 students requiring a post-withdrawal disbursement were not disbursed to the student within the required time frame. The 2 errors were for the Fall 2022 term.
Cause and Effect - The University had an employee absence for the week that these errors were identified, which led to returns of Title IV funds being completed outside the required time frame.
Recommendation - We recommend that the University institute a process to ensure that all returns of Title IV aid are calculated and returned within the required time frame regardless of staff resource constraints, to ensure compliance with the Special Tests and Provisions - Return of Title IV Funds compliance requirements.
Views of Responsible Officials and Corrective Action Plan - In response to identified delays in returning Title IV funds within the stipulated time frame for post withdrawal disbursements, an immediate corrective action plan has been initiated. This plan involves a thorough review of internal processes to identify and rectify procedural gaps contributing to the delays. Staff training sessions are being conducted to reinforce understanding and compliance with Title IV regulations, with a particular emphasis on the importance of timely disbursements.