FAC Explorer

Finding 380763 (2023-003)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-03-18
Audit: 295472
Organization: Pittsburgh Institute of Mortuary Science, Inc. (PA)
Auditor: Sikich LLP

AI Summary

  • Issue: A late refund was identified for one student, violating the requirement to process refunds within 45 days of withdrawal.
  • Impacted Requirements: This finding breaches the Department of Education's compliance standards for the Federal Direct Loan Program.
  • Recommended Follow-Up: Enhance controls in the financial aid department to prevent future late refunds and ensure compliance.

Finding Text

FINDING 2023-003: LATE REFUND FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN: 84.268 FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: The Department of Education requires that all refunds be made within 45 days of a student’s withdrawal (34 CFR 668.22, 685.306). Condition: We tested thirteen drop students in our sample and noted one late refund. We consider this finding to be an instance of non-compliance and is a repeat finding shown in Section IV of this report as prior year Finding 2022-003. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result is the Institution retained funds which should have been returned to the Department of Education. Question Costs: $1,478 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over refunds. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

FINDING 2023-003: LATE REFUND A. COMMENTS ON FINDING AND RECOMMENDATION(S): PIMS AGREES WITH THE FINDINGS OF THE AUDITORS THAT STUDENT B1 WAS REFUNDED WITHIN THE FEDERAL GUIDELINE TIME ALLOTMENT. B. ACTIONS TAKEN OR PLANNED: THE INSTITUTE HAS IMPROVED THE WITHDRAWAL PROCESS AND PROCEDURES UNDER NEW MANAGEMENT ALONG WITH WORKING MORE CLOSELY WITH THE ENROLLMENT OFFICE TO WATCH FOR STUDENTS THAT DO NOT BEGIN A NEW TERM.

Categories

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

Other Findings in this Audit

  • 380761 2023-001
    - Repeat
  • 380762 2023-002
    -
  • 380764 2023-004
    Significant Deficiency Repeat
  • 380765 2023-005
    Material Weakness
  • 957203 2023-001
    - Repeat
  • 957204 2023-002
    -
  • 957205 2023-003
    - Repeat
  • 957206 2023-004
    Significant Deficiency Repeat
  • 957207 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.18M
84.063 Federal Pell Grant Program $494,581
84.007 Federal Supplemental Educational Opportunity Grants $18,450