Finding 397046 (2023-002)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-05-16
Audit: 306421
Organization: Ensign College (UT)

AI Summary

  • Core Issue: The College failed to return Title IV funds within the required 45 days for two students who withdrew, with returns made 88 and 82 days late.
  • Impacted Requirements: This finding violates 34 CFR 668.173(b), which mandates timely returns of unearned Title IV funds.
  • Recommended Follow-Up: The College should train additional staff for Title IV calculations and establish backup procedures to prevent delays due to staffing changes.

Finding Text

Finding 2023-002 - Untimely Return of Title IV Requirements Grantor: U.S. Department of Education Program: Student Financial Assistance Cluster Assistance Listing #: 84.268, 84.063 Award Titles: Federal Direct Student Loan Program, Federal Pell Grant Program Award Years: 7/2022 – 6/2024 Criteria 34 CFR 668.173(b) (b) Timely return of title IV, HEA program funds. In accordance with procedures established by the Secretary or FFEL Program lender, an institution returns unearned title IV, HEA program funds timely if— 1. The institution deposits or transfers the funds into the bank account it maintains under § 668.163 no later than 45 days after the date it determines that the student withdrew. Condition Of the 116 students that received federal student financial assistance and withdrew from the College during the fiscal year, we selected 12 students for testing compliance with the return of title IV fund requirements. Of the 12 students selected, two instances were noted during the Fall 2023 semester in which the return of title IV funds was not completed within 45 days. For the two instances, funds were returned 88 and 82 days, respectively, from the date in which the College determined that the students withdrew. Cause The College experienced staffing turnover in Fall 2023. As a result, the return of title IV calculations were performed late, and the title IV funds were returned after the 45-day requirement. Effect Title IV funds due to the U.S. Department of Education were returned late. Timely returns of title IV funds ensure the College is in an accurate receivable position as the school operates on the reimbursement method for cash management, despite eligibility for the advanced method. Questioned Costs None Recommendation We recommend that the College identify additional individuals to assist in return of title IV calculations as backup for staffing turnover and ensure those individuals responsible have adequate training to perform and review return of title IV fund calculations to ensure timely returns. Management’s Views and Corrective Action Plan: Management’s response is reported in management’s views and corrective action plan included at the end of this report.

Corrective Action Plan

Management Views and Corrective Action Plan Year Ending December 31, 2023 Finding 2023-002 - Untimely Return of Title IV Requirements Grantor: U.S. Department of Education Program: Student Financial Assistance Cluster Assistance Listing#: 84.268, 84.063 Award Titles: Federal Direct Student Loan Program, Federal Pell Grant Program Award Years: 7/2022 – 6/2024 Management agrees with the finding and proposes the following corrective action plan: Corrective Action Plan The College hired two new financial aid employees during the Fall 2023 semester. These employees will be responsible for monitoring student withdrawals and performing return of title IV fund calculations on a weekly basis to ensure all refunds transactions are processed timely and accurately. Additional training will be provided by Riley Niemand, Financial Aid Manager to ensure compliance with R2T4 regulations. Timing Riley Niemand is currently training these new employees on the return of title IV fund process. This training will be completed by September 1, 2024. Sincerely, S. Christopher Reitz Director of Financial Services and Controller creitz@ensign.edu 801-524-8109

Categories

Student Financial Aid Cash Management Eligibility Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $2.63M
84.268 Federal Direct Student Loans $914,298