Finding 391147 (2023-005)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-04-01
Audit: 301753
Auditor: Sikich LLP

AI Summary

  • Core Issue: Four out of thirty-two refund calculations for drop students were incorrect, leading to significant deficiencies.
  • Impacted Requirements: Compliance with the Return to Title IV refund calculation (34 CFR 668.22) was not met, marking this as a repeat finding.
  • Recommended Follow-Up: Refund $953 to the Department of Education, credit $3,569 to student accounts, and enhance controls over refund processes.

Finding Text

Finding 2023-005: Incorrect Refund Calculations Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested thirty-two drop students and found four incorrect refund calculations. We consider this finding to be a significant deficiency and is a repeat finding shown in Section IV of this report as prior year Finding 2022-006. Cause: The condition was caused by using incorrect charges in Step 5 of the Return to Title IV refund calculations. Effect: The result is the Institution refunded incorrect amounts to the Department of Education. Question Costs: $953 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $953 to the Department of Education, credit $3,569 to the students' accounts and increase controls over refunds. There is no liablity for the remaining $1,556, as this was due to overrefunding loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

FINDING 2023-5- Incorrect Refund Calculations The Institute had not correctly calculated the Return-to-Title IV for four (4) students who had withdrawn from the Institute. A.Comments on Findings and Recommendations: The Institute agrees with the finding and Auditor's recommendation. B.Actions Taken or Planned We will complete R2T4 Calculations correctly and return the unearned aid back to Dept of Education promptly. We have also moved all R2T4 calculation to a new third-party servicer as of 4/2024. We will be returning $953 to the Department of Education and crediting $3,569 to the students' accounts that were affected. Signed Betsy Bremke, Administrative Campus Director Date: _3/29/2024__

Categories

Questioned Costs Special Tests & Provisions Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 391145 2023-002
    Significant Deficiency Repeat
  • 391146 2023-004
    Material Weakness Repeat
  • 391148 2023-006
    - Repeat
  • 391149 2023-007
    -
  • 391150 2023-008
    Significant Deficiency
  • 391151 2023-003
    - Repeat
  • 391152 2023-004
    Material Weakness Repeat
  • 391153 2023-005
    Significant Deficiency Repeat
  • 391154 2023-006
    - Repeat
  • 391155 2023-007
    -
  • 391156 2023-008
    Significant Deficiency
  • 967587 2023-002
    Significant Deficiency Repeat
  • 967588 2023-004
    Material Weakness Repeat
  • 967589 2023-005
    Significant Deficiency Repeat
  • 967590 2023-006
    - Repeat
  • 967591 2023-007
    -
  • 967592 2023-008
    Significant Deficiency
  • 967593 2023-003
    - Repeat
  • 967594 2023-004
    Material Weakness Repeat
  • 967595 2023-005
    Significant Deficiency Repeat
  • 967596 2023-006
    - Repeat
  • 967597 2023-007
    -
  • 967598 2023-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $714,293
84.063 Federal Pell Grant Program $303,590