Finding Text
2023-006 Significant Deficiency: Return to Title IV Funds (U.S. Department of Education, William D.
Ford Direct Loan Program, ALN #84.268; Federal Pell Grant Program, ALN #84.063; Federal
Supplemental Opportunity Grant Program, ALN #84.007; and TEACH Grant Program, ALN #84.379)
Criteria: In accordance with 34 CFR 668.22(g), for the purpose of calculating the return of unearned
aid upon withdrawal, “institutional charges” are tuition, fees, room and board (if the student
contracts with the institution for the room and board) and other educationally related expenses
assessed by the institution.
Statement of Condition: During the audit, it was noted that the University incorrectly calculated
institutional charges used in determining the amount of unearned aid to withdrawal.
Questioned Costs: The known monetary error is $307 over-awarded. Extrapolation of the error was
not necessary because all withdrawals were tested during the audit. Therefore, the monetary
impact of this deficiency does not exceed the reporting threshold of $25,000.
Perspective Information: The audit included a detailed testing of 6 student files, of which this
significant deficiency applies to 2, indicating an error rate of 33.30%.
Cause and Effect: For noted withdrawal calculations, the institutional charges were not calculated
per the stipulations described in the handbook. This could result in a miscalculation of Title IV aid
earned and could result in monetary error.
Recommendation: The University should ensure that the calculation of institutional charges used in
the determination of the return of aid for a payment period in which a student has withdrawn is
formulated correctly utilizing the guidance provided by the Compliance Supplement and the Student
Financial Aid Handbook.
View of Responsible Officials: The University improved the process for completing return to Title IV
calculations by adding in additional training and workshops offered through the Department of
Education. The financial aid office created a calendar showing days of attendance from the first day
of school to the last using the school’s master calendar as a reference. This will be used also as a
double check of days when calculating returns. The dates used in the return calculations were off a
day due to misreading the ending date of semester.