Finding 396150 (2023-001)

Federal Program: Student Financial Assistance Cluster - Federal Direct Student Loans Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable Assistance Listing Number: 84.268 Federal Award Year: June 30, 2023 Criterion: 34 CFR 668.22 requires that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with Federal regulations and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition and Context: The return of Title IV funding amount for one student, out of thirteen selected for testing, was not correctly calculated and an incorrect amount was returned within 45 days after the withdrawal date. Our sample was not statistically valid. Cause: The University did not properly calculate the number of days in a term by excluding the total number of days during the spring break, which resulted in an incorrect percentage of attendance to be used in the refund calculation. Effect: The University returned an incorrect amount based on the student’s percentage of completion in the semester. Recommendation: The University should reevaluate the existing process and related control to ensure that the Title IV funds are accurately calculated and returned to the Department of Education. Management Response: Management agrees with the finding. The Director of Financial Aid will ensure the implementation of procedures and controls in fiscal 2024 to ensure accurate calculation for return of Title IV funds.