Finding 37590 (2022-002)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-11-02
Audit: 35821
Organization: East Texas Baptist University (TX)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: An incorrect Return of Title IV Funds (R2T4) was performed for one student, leading to ineligible federal loans being disbursed.
  • Impacted Requirements: This finding violates 34 CFR 668.22 regarding eligibility for federal loans based on attendance.
  • Recommended Follow-Up: Enhance the review process to ensure only students registered for the minimum hours required for loans are considered for aid.

Finding Text

Inaccurate Return of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans Federal Award Identification #: 2021-2022 Financial Aid Year Condition: One student had an incorrect R2T4 performed. Criteria: 34 CFR 668.22 Questioned Costs: $841 Context: One student out of 14 tested for withdrawals had federal loans included in aid that could have been disbursed. The student did not begin half time attendance, and the eligibility for federal loans should have been removed. This was corrected during the audit process. Cause: The inclusion of the aid in the aid that could have been disbursed column was an oversight. The withdrawal date was before the loan was disbursed. Effect: The student received subsidized loans for which they were not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the review process include students who are registered for the minimum hours to receive loans. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

R2T4 Planned Corrective Action: ETBU Registrars office is now informing the Financial aid office of any student who withdrawals or that is reported as not attending in courses from the second FLEX terms. Financial aid is awarded based on total payment period enrollment and any notification of change in enrollment will result in a review and recalculation of aid eligibility if necessary. Reports were revised to reflect changes in enrollment after primary term census. Person Responsible for Corrective Action: Troy White, Registrar and Linda Slawson, Director of Financial aid. Anticipated Date of Completion: Already implemented.

Categories

Questioned Costs Student Financial Aid Eligibility Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.78M
84.063 Federal Pell Grant Program $2.46M
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $2.24M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $1.44M
84.038 Federal Perkins Loan Program $660,927
84.425 Covid-19 Education Stabilization Fund Heerf - Strengthening Institutions $195,755
84.033 Federal Work-Study Program $127,299
84.007 Federal Supplemental Educational Opportunity Grants $114,633
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $11,316