Finding 382380 (2023-001)

Finding No. 2023–001 - Special Tests and Provisions - Return of Title IV Funds - San Germán Campus Federal Program Name Student Financial Assistance Programs Cluster - Federal Direct Student Loan Program (DL) Assistance Listing 84.268 Name of Federal Agency U.S. Department of Education (USDE) Pass-through Entity N/A Criteria According to 34 CFR 668.22(j)(2) for an institution that is not required to take attendance, it must determine the withdrawal date for a student who withdraws without providing notification to the institution no later than 30 days after the end of the earlier of the: (i) Payment period or period of enrollment, as appropriate, in accordance with paragraph (e)(5) of this section; (ii) Academic year in which the student withdrew; or (iii) Educational program from which the student withdrew. Condition In testing compliance with the return of Title IV funds requirements, we made a selection of sixty (60) students who withdrew, dropped-out, or failed to attend to the University, plus all thirteen (13) students from the selected campuses that failed to earn a passing grade, for a total of seventy three (73) students, and noted that for one (1) student, the determination of withdrawal was performed after the required 30 days, as follows: Table Cause At the end of the term in the San Germán campus, the professor certified a non-passing grade and later changed it to an unauthorized withdrawal, resulting in an administrative withdrawal for the student. However, such administrative withdrawal was not determined within the required period. As a result, the return of Title IV funds was not processed on a timely manner. Effect As a result of this instance of noncompliance, the USDE may issue warnings and/or impose penalties on the University. Also, the incorrect return of Title IV funds could limit the students’ future eligibility to Title IV funds. Questioned Costs None. Context Of the 2,417 withdrawals from the selected campuses for the year ended June 30, 2023, we selected sixty (60) students who withdrew, dropped-out, or failed to attend to the University, plus all thirteen (13) students from the selected campuses that failed to earn a passing grade, for a total of seventy-three (73) students, and noted one (1) instance of noncompliance. Following is a description of the sample that included the finding identified and the population from which the sample was drawn for students that received Pell funds: Table Following is a description of the sample that included the finding identified and the population from which the sample was drawn for students that received Direct Loans: Table Identification of a Repeat Finding This is a repeat finding from the immediate previous audit (2022-001). Recommendation The University San Germán Campus’ management should reinforce its procedures to ensure the identification and timely resolution of instances in which students withdrew without providing notification to the University. Views of Responsible Officials and Planned Corrective Actions The University management agrees with this finding. Refer to the corrective action plan on pages 66-67.