Finding Text
Federal Agency –Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268.
Federal Award Program Year – June 1, 2022 – May 31, 2023
Criteria or Specific Requirement – When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student on his or her behalf as of the date of the institution’s determintation that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment (34 CFR Sections 668.22(a)(1)-(3)).
Condition – The earned percentage, based upon the enrollment period determined and the amount of aid to return, was calculated incorrectly. The University over-returned funds to the Department of Education because of the error in the calculation.
Questioned Costs – None
Context – Of a sample of two return of funds tested from a population of four performed during the examination period, one calculation was not performed correctly. Our sample was not, and was not intended to be, statistically valid.
Cause – The enrollment period was calculated incorrectly.
Effect – The University returned the incorrect amount of funds to the Department of Education.
Identification as a Repeat Finding – N/A
Recommendation – We recommend that the University be diligent in performing secondary reviews to endure the calculations are performed correctly along with review of inputs into the system to ensure the proper number of days are included in each term.
Views of Responsible Officials and Planned Corrective Action – There is no disagreement with the audit finding. We have diligently reviewed our procedures and implemented robust measures to ensure strict adherence to the regulations governing Return of Title IV Funds. Our efforts have focused on establishing comprehensive double checks throughout the process to mitigate any potential errors or oversights. This includes enhanced annual training, dual verification process - every Return of Title IV fund calculation must now be calculated first by our Financial Aid Data and Reporting Analyst and then re-calculated and reviewed by the Executive Director of One Stop. We now have a robust documentation process for each return and prior to the end of the fiscal implemented internal audits of all withdrawn students. We are confident these measures will maintain compliance and ensure accuracy.