Finding Text
Finding 2023-002 - Significant Deficiency - Special Tests And Provisions - Return Of Title IV Funds - Compliance and Control Finding
ALN 84.063 - Federal Pell Grant Program and 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster
Federal Agency: Department of Education
Pass-Through Entity: None
Criteria Or Specific Requirement: When a recipient of Title IV grant or loan assistance withdraws from the University during a payment period or period of enrollment in which the recipient began attendance, the University must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Any amount unearned must be returned to the Title IV programs within 45 days.
Condition: For a sample of 25 students, it was noted for three students tested that the Title IV funds were returned after the 45-day required timeframe.
Cause: Controls over compliance put in place by management were not operating effectively as it relates to return of Title IV funds.
Effect: The University’s controls did not prevent the errors noted during the return of Title IV funds.
Questioned Costs: Known and likely questioned costs did not exceed $25,000.
Context: During the testing performed, it was noted for three students, the Title IV funds were returned after the 45-day required timeframe. The sample was non-statistical from a listing of students receiving financial aid.
Identification As A Repeat Finding: Not a repeat finding.
Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program.
Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to accurately returning Title IV funds.