Finding 38001 (2022-006)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-30
Audit: 28916
Organization: Hodges University, Inc. (FL)

AI Summary

  • Core Issue: The University failed to return $740 in Pell Grant funds to the Department of Education within the required 45 days after a student withdrew.
  • Impacted Requirements: This finding violates 34 CFR 668.22(e)(4), which mandates timely return of unearned Title IV assistance.
  • Recommended Follow-Up: Implement stronger policies and procedures to ensure timely refunds of Title IV funds in the future.

Finding Text

2022?006 Return of Title IV (R2T4) Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster CFDA Number: 84.063 ? Federal Pell Grant Program Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance (Other Matters) Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.22(e)(4) states the total amount of unearned title IV assistance must be returned within 45 days after the date of the institution's determination that the student withdrew. Condition: During our testing we noted one instance where the University did not return funds to the Department of Education. Questioned costs: Known questioned costs totaling $740, likely questioned costs totaling $3,808. Context: In our sample of 7 students, we identified one student where Pell funds of $740 were not returned to the Department of Education. The University submitted a request to return funds through COD, but the request did not go through. Cause: The University?s policies and procedures did not ensure that the refund was made in a timely manner. Effect: Funds were not returned to the Department of Education. Repeat Finding: No. Recommendation: We recommend that the college ensures they have appropriate policies and procedures as well as safeguards in place to ensure return of Title IV funds are made in a timely manner. Views of responsible officials: See Corrective Action Plan prepared by the University.

Corrective Action Plan

2022-006 Return of Title IV (R2T4) Recommendation: We recommend that the college ensures they have appropriate policies and procedures as well as safeguards in place to ensure return of Title IV funds are made in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Reason for finding: Return of Title IV (R2T4) was not processed in a timely manner due to late status changes reported from academics. Action taken in response to finding: Provided federal guidance to registrar?s office to process attendance taking and status changes in a timely manner. Name(s) of the contact person(s) responsible for corrective action: Joshua Carcopa/Nicole Hurley Planned completion date for corrective action plan: Effective Immediately.

Categories

Questioned Costs Student Financial Aid Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 38002 2022-004
    Significant Deficiency
  • 38003 2022-004
    Significant Deficiency
  • 38004 2022-004
    Significant Deficiency
  • 38005 2022-002
    Significant Deficiency Repeat
  • 38006 2022-003
    Significant Deficiency Repeat
  • 38007 2022-004
    Significant Deficiency
  • 38008 2022-005
    Significant Deficiency
  • 38009 2022-007
    Significant Deficiency Repeat
  • 614443 2022-006
    Significant Deficiency
  • 614444 2022-004
    Significant Deficiency
  • 614445 2022-004
    Significant Deficiency
  • 614446 2022-004
    Significant Deficiency
  • 614447 2022-002
    Significant Deficiency Repeat
  • 614448 2022-003
    Significant Deficiency Repeat
  • 614449 2022-004
    Significant Deficiency
  • 614450 2022-005
    Significant Deficiency
  • 614451 2022-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.07M
84.425 Education Stabilization Fund $3.49M
84.063 Federal Pell Grant Program $1.97M
84.007 Federal Supplemental Educational Opportunity Grants $168,308
84.033 Federal Work-Study Program $23,000