Finding 371061 (2023-004)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-02-28
Audit: 292735
Organization: Drury University (MO)
Auditor: Forvis LLP

AI Summary

  • Core Issue: Title IV funds were not returned on time for some student withdrawals.
  • Impacted Requirements: Compliance with 34 CFR Section 668.22 regarding timely return of funds.
  • Recommended Follow-Up: Financial Aid Office should ensure timely processing of Return of Title IV calculations for all withdrawals.

Finding Text

Student Financial Assistance Cluster, CFDA Number 84.268 Federal Direct Student Loans, CFDA Number 84.063 Federal Pell Grant Program, U.S. Department of Education Program Year 2022-2023 Criteria or Specific Requirement – Special Tests: Return of Title IV Funds 34 CFR Section 668.22 Condition: Return of Title IV funds were not completed within the required time frame. Questioned costs – None Context – Out of a population of 115 official and unofficial withdrawals of students who received Student Financial Assistance, a sample of 19 students withdrawals were selected for testing. Our sample was not and was not intended to be statistically valid. For 4 of the student withdrawals tested the disbursements were not made back to the lender within the required time frame and the credits to accounts were not made within the required timeframe. Effect – Funds were not returned within the required time frame. Cause – The University’s Office of Financial Aid did not timely process the return of Title IV calculations. Identification as a repeat finding – N/A Recommendation – The University’s Office of Financial Aid should complete Return of Title IV calculations for all students who officially or unofficially withdrew during the semester and ensure that any returns due are returned in a timely manner.

Corrective Action Plan

View of Responsible Officials and Planned Corrective Actions – Drury University accepts this finding and has created a Corrective Action Plan (CAP). In all four cases identified in the finding, the late return of funds were for students who unofficially withdrew (ceased attending) and did not notify the institution. Henceforth, within 10 days of grades being posted at the end of each semester, Financial Aid will liaise with the Registrar’s Office to review all unearned F grades and determine if a return of funds is required. Additional automated tasks already have been created in the PowerFAIDs software that notify the Financial Aid Administrator (FAA) when a Return of Title IV Funds (R2T4) has been completed but not processed. The FAA will monitor R2T4 processing and returns to ensure that returns are processed within the required timeframe.

Categories

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

Other Findings in this Audit

  • 371062 2023-004
    Significant Deficiency
  • 371063 2023-005
    Significant Deficiency
  • 371064 2023-005
    Significant Deficiency
  • 947503 2023-004
    Significant Deficiency
  • 947504 2023-004
    Significant Deficiency
  • 947505 2023-005
    Significant Deficiency
  • 947506 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.86M
84.063 Federal Pell Grant Program $4.17M
21.027 Coronavirus State and Local Fiscal Recovery Funds $384,230
84.038 Federal Perkins Loan Program $264,372
84.007 Federal Supplemental Educational Opportunity Grants $233,250
84.033 Federal Work-Study Program $144,443
97.008 Non-Profit Security Program $96,474
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $71,668