FAC Explorer

Finding 383897 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-22
Audit: 296905
Organization: California Baptist University (CA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The University did not return Title IV funds within the required 45 days after determining a student's withdrawal date.
  • Impacted Requirements: Compliance with 34 CFR 668.22 regarding timely return of funds and accurate last date of attendance.
  • Recommended Follow-Up: Provide additional training for staff on R2T4 processes and implement an extra review step for accuracy.

Finding Text

Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.22 defines the last date of attendance for schools that are required to take attendance and those that are not required and requires an institution to return the amount of title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew. Condition: For seven of forty R2T4s tested, the University failed to return payments within 45 days of school determination the student withdrawal date. For one of forty R2T4s tested, the improper last date of attendance was used. Questioned Costs: Not determined. Context: The University failed to return payments within 45 days of school determination. Cause: The University's internal controls did not identify the errors for compliance with the criteria mentioned above. Effect: The student’s return of funds calculation was not done correctly and the return of funds back to the federal government was for the incorrect amount. The University failed to return payments within 45 days of school determination the student withdrawal date. Repeat Finding: No Recommendation: We recommend that additional training is provided to staff completing R2T4s to ensure a thorough understanding of governing regulations for each individual program. We also recommend an additional level of review is added to ensure completed R2T4s are properly completed.

Corrective Action Plan

Return of Title IV (R2T4) Calculation Student Financial Assistance Cluster – Assistance Listing Number: 84.007, 84.063, and 84.268 Recommendation: We recommend that additional training is provided to staff completing R2T4s to ensure a thorough understanding of governing regulations for each individual program. We also recommend an additional level of review is added to ensure completed R2T4s are properly completed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid administration has signed up our counseling staff to attend NASFAA’s R2T4 credential training. In addition, we have adjusted our review process for R2T4s to have multiple checks along the way by others in the office, so not just one counselor is completing the R2T4. Also, the report now has a built-in clock to monitor the date to ensure if corrections are need that they are done within 45 days of the R2T4. Name(s) of the contact person(s) responsible for corrective action: Joshua Morey, Senior Director of Financial Aid. Planned completion date for corrective action plan: This enhanced review process was put into place in October 2023. Training for counselors with NASFAA will take place in April 2024.

Categories

Student Financial Aid Internal Control / Segregation of Duties

Other Findings in this Audit

  • 383892 2023-002
    Significant Deficiency
  • 383893 2023-002
    Significant Deficiency
  • 383894 2023-002
    Significant Deficiency
  • 383895 2023-002
    Significant Deficiency
  • 383896 2023-002
    Significant Deficiency
  • 383898 2023-001
    Significant Deficiency
  • 383899 2023-001
    Significant Deficiency
  • 383900 2023-001
    Significant Deficiency
  • 960334 2023-002
    Significant Deficiency
  • 960335 2023-002
    Significant Deficiency
  • 960336 2023-002
    Significant Deficiency
  • 960337 2023-002
    Significant Deficiency
  • 960338 2023-002
    Significant Deficiency
  • 960339 2023-001
    Significant Deficiency
  • 960340 2023-001
    Significant Deficiency
  • 960341 2023-001
    Significant Deficiency
  • 960342 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Loan Program $119.98M
84.063 Federal Pell Grant Program $18.63M
84.425 Covid-19 Heerf - Institutional $7.35M
84.007 Federal Supplemental Educational Opportunity Grant (fseog) $1.39M
84.038 Perkins Loan Program $527,463
84.425 Covid-19 Heerf - Student Aid $284,326
93.264 Nurse Faculty Loan Program $168,853
93.243 Healthy Jurupa Valley Coalition Stop Act Alcohol Prevention Project $99,726
84.007 Fseog Administrative Cost Allowance $65,055
84.033 Federal Work Study Program Fws Administrative Cost Allowance $59,060
93.276 Healthy Jurupa Valley Substance Abuse Action Team $23,454