Finding 370805 (2023-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-27
Audit: 292492
Organization: The King's University (TX)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: There were incorrect calculations of Title IV funds returned for students who withdrew, affecting compliance with federal regulations.
  • Impacted Requirements: Violations of 34 CFR 668.22 due to errors in fund return calculations and late processing.
  • Recommended Follow-Up: The University should collaborate with the third-party processor to improve accuracy in return calculations and prevent future errors.

Finding Text

Inaccurate Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: There were 2 incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 7 students, 2 students who withdrew during the audit period tested had funds returned incorrectly. One student was a modular student and had met an exemption, and the other student had an incorrect calculation. Additionally, 1 student had funds returned 87 days late. Additionally, one student had funds returned on the student account but the returns were not reflected in Common Origination and Disbursement (COD). Cause: These were oversights by the University in conjunction with the third-party administrator who assists in processing return calculations. Effect: The incorrect amount of Title IV funds was returned. Identification as repeat finding, if applicable: Yes, 2022-001 Recommendation: We recommend the University and the third-party processor work together to determine how to best complete return calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Inaccurate Return of Title IV Funds Calculations Planned Corrective Action: The University will work with FA Solutions weekly to ensure funds are calculated correctly and timely returns of IV Funds are processed. Person Responsible for Corrective Action Plan: Donnie Purvis, Director of Financial Services Anticipated Date of Completion: Effective Immediately, February 15, 2024

Categories

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 370806 2023-002
    Significant Deficiency Repeat
  • 370807 2023-003
    Significant Deficiency
  • 370808 2023-004
    Significant Deficiency
  • 370809 2023-004
    Significant Deficiency
  • 370810 2023-004
    Significant Deficiency
  • 370811 2023-004
    Significant Deficiency
  • 947247 2023-002
    Significant Deficiency Repeat
  • 947248 2023-002
    Significant Deficiency Repeat
  • 947249 2023-003
    Significant Deficiency
  • 947250 2023-004
    Significant Deficiency
  • 947251 2023-004
    Significant Deficiency
  • 947252 2023-004
    Significant Deficiency
  • 947253 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.21M
84.063 Federal Pell Grant Program $523,464
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $205,345
84.033 Federal Work-Study Program $38,000
84.007 Federal Supplemental Educational Opportunity Grants $23,614