Finding 371419 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-01
Audit: 293097
Organization: Moore College of Art & Design (PA)

AI Summary

  • Core Issue: One student's federal aid refund was not returned within the required 45 days, violating Title IV regulations.
  • Impacted Requirements: Compliance with 34 CFR 668.22 regarding timely returns of unearned Title IV funds.
  • Recommended Follow-Up: Enhance procedures for monitoring refunds and implement weekly reviews to ensure timely processing of all withdrawals.

Finding Text

Finding 2023-001 - Return of Title IV Funds Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable ALN Number: 84.063, 84.268 Federal Award Number: P063P222121, PK268K232121 Federal Award Year: June 30, 2023 Criteria: 34 CFR 668.22 requires that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with Federal regulations and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition/Context: The federal aid refunds for one of twelve students tested as part of our sample were not returned timely to the Title IV Program. For the one student not returned within the 45 days, the total award to be returned was $5,255. The sample was not a statistically valid sample. Questioned Costs: None. Cause: The College’s procedures for the return of Title IV funds were not followed consistently throughout the period. Effect: The amounts refunded to the Department of Education were refunded late. Recommendation: The College should continue to review and adhere to its procedures for refunding awards and implement a more thorough review process to ensure funds required to be returned within 45 days comply with the Title IV regulations. Views of Responsible Officials and Planned Corrective Actions: On a weekly basis, the Registrar will download the Registration Status Report from the student information system and review the report for accuracy. A copy will be provided to the Director of Financial Aid and the Accounts Receivable Coordinator to ensure all withdrawn students have been communicated in a timely fashion and all R2T4s are processed timely.

Categories

Student Financial Aid Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 371416 2023-002
    Significant Deficiency
  • 371417 2023-001
    Significant Deficiency
  • 371418 2023-002
    Significant Deficiency
  • 371420 2023-002
    Significant Deficiency
  • 947858 2023-002
    Significant Deficiency
  • 947859 2023-001
    Significant Deficiency
  • 947860 2023-002
    Significant Deficiency
  • 947861 2023-001
    Significant Deficiency
  • 947862 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.21M
84.063 Federal Pell Grant Program $804,546
84.038 Federal Perkins Loan Program $637,210
84.007 Federal Supplemental Educational Opportunity Grants $154,848
84.033 Federal Work-Study Program $89,559