Finding 389355 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300356
Organization: Antioch University (OH)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The University failed to return Title IV funds on time for one student and miscalculated refunds for two others.
  • Impacted Requirements: This noncompliance violates the FSA Handbook and Federal regulations regarding timely and accurate fund returns.
  • Recommended Follow-up: Establish a quality assurance process with strong controls to ensure compliance moving forward.

Finding Text

Finding 2023-001 Federal Program: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.063 and 84.268 Federal Agency: Department of Education Award Year: 2023 Criteria: The University is required to implement procedures to appropriately administer funding under the Student Financial Assistance Cluster to return Title IV funds in the appropriate time required by regulations. Condition: During the course of our testing, we identified one student from a sample of seven whose return of Title IV aid was not calculated and returned in the appropriate time required. Additionally, we identified two students from a sample of seven whose Title IV refunds were not calculated correctly. Cause: Administrative oversight by personnel in reporting the status accurately and timely did not operate as designed. Context: Controls did not operate properly to refund students with Federal Direct loans or Pell grants. Effect: The University has not complied with certain requirements of FSA Handbook and Federal Code of Regulations to return aid properly to the students. Questioned Costs: None Repeat Finding: No Recommendations: The University should implement and document an overall quality assurance process including adequate controls to prevent overall noncompliance. Corrective Action Plan: See page 40 for Corrective Action Plan.

Corrective Action Plan

Corrective Action Taken or Planned: Starting with the 2024-2025 Award year, the Office of Financial Aid and Scholarships is undergoing an internal reorganization. The purpose of this is to provide a broader depth of knowledge and better dual control and compliance functions within the Office of Financial Aid and Scholarships. In the new reorganization structure, the FA Specialist will be responsible for performing the R2T4 Calculations, with their Supervisor, the Assistant Director of Financial Aid Operations, reviewing and approving the calculation. Once the calculation is completed, and signed off on by the Assistant Director, the FA Specialist will will complete and send the Financial Aid Transmittal Register (FATR) report and notify the Student Accounts Office so they can process the return of funds on through the Financial Aid Posting Register (FATP). Review of the Financial Aid Posting Register will be done by the FA Specialist to ensure the internal process to return funds is timely and posted to the Common Origination and Disbursement system accurately. A quarterly review and internal control audit of Title IV refund calculations will also be completed to ensure accuracy in system processing, days and break calculations, and adherence to Title IV regulations. In addition, the staff will have additional training throughout the year on Title IV compliance and refunds to ensure the University is compliant with all regulations. Person Responsible for Corrective Action: Katy Stahl, the Executive Director of Financial Aid & Scholarships, is responsible for the execution of the corrective action plan. Anticipated Completion Date: Fiscal year 2024

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 389356 2023-002
    Significant Deficiency
  • 389357 2023-001
    Significant Deficiency
  • 389358 2023-002
    Significant Deficiency
  • 965797 2023-001
    Significant Deficiency
  • 965798 2023-002
    Significant Deficiency
  • 965799 2023-001
    Significant Deficiency
  • 965800 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $62.79M
84.033 Federal Work-Study Program $995,977
84.063 Federal Pell Grant Program $697,773
84.007 Federal Supplemental Educational Opportunity Grants $608,106
93.191 Graduate Psychology Education Program and Patient Navigator and Chronic Disease Prevention Program $443,369
93.732 Mental and Behavioral Health Education and Training Grants $270,229
84.425M Education Stablization Fund $240,034
45.313 Laura Bush 21st Century Librarian Program $114,497
66.950 National Environmental Education Training Program $55,721
11.431 Climate and Atmospheric Research $54,654
94.013 Americorps Volunteers in Service to America $51,633
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System $13,709
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $6,750
10.102 Emergency Forest Restoration Program $5,419
10.684 International Forestry Programs $4,612
15.634 State Wildlife Grants $4,502
45.129 Promotion of the Humanities_federal/state Partnership $1,576