FAC Explorer

Finding 403021 (2023-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-06-26
Audit: 310166
Organization: Word of Life Fellowship, Inc. and Subsidiary (NY)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Title IV funds were not returned accurately or on time when students withdrew, with delays ranging from 5 to 310 days.
  • Impacted Requirements: This violates 34 CFR 668.22, which mandates timely and accurate returns of unearned aid.
  • Recommended Follow-Up: Assign a qualified financial aid staff member to regularly review R2T4 calculations and returns to improve compliance and internal controls.

Finding Text

Inaccurate and Untimely Returns of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007 Federal Award Identification #: 2022-2023 and 2023-2024 Financial Aid Year Condition: When students withdrew from Word of Life, unearned Title IV aid was not always returned timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 15 students tested, Word of Life returned $11,805 of unearned Title IV funds late, ranging from 5 to 310 days, for 5 students. Additionally, Word of Life returned $2,037 of Title IV funds for one student who did not return for the next term and did not require funds to be returned. Cause: This was an oversight by Word of Life. Effect: Returns of Title IV funds were not performed timely or accurately for Spring of 2023 (2022-2023 Financial Aid Year) and Fall of 2023 (2023-2024 Financial Aid Year). Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's R2T4 calculations and returns to help ensure that internal controls over such a process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Inaccurate and Untimely Returns of Title IV Funds (R2T4) Planned Corrective Action: In response to the identified discrepancies, we have developed a comprehensive action plan aimed at enhancing our procedures and mitigating the risk of similar issues in the future. 1. Review of Title IV Fund Return Processes: • Conducted a thorough review of our current Title IV fund return processes to identify the underlying causes of the discrepancies. • Assessed current procedures, documentation, and staff training protocols to pinpoint areas needing improvement. 2. Implementation of Bi-Weekly Enrollment Status Reviews: • Establish a process to review student enrollment status every two weeks to identify students who have withdrawn or stopped attending. • Designate specific team members responsible for conducting these bi-weekly reviews. • Provide comprehensive training for designated staff on the importance and procedures of Return to Title IV (R2T4) calculations. 3. Standardized Communication Process: • Develop a standardized process for promptly communicating student withdrawals to the third-party servicer after each bi-weekly review. • Ensure clear guidelines and timelines for communication to prevent delays. 4. Monitoring and Documentation: • The Financial Aid Office will document all actions taken under this corrective action plan. • Maintain detailed records of bi-weekly reviews, communications with the third-party servicer, and subsequent R2T4 calculations. 5. Compliance and Success: • By implementing this corrective action plan, the Financial Aid Office will ensure timely and accurate R2T4 calculations. • Maintain compliance with federal regulations and prevent delays through regular reviews, proper documentation, and prompt communication. Person Responsible for Corrective Action Plan: Alex Hackett, Director of Financial Aid Anticipated Date of Completion: 7/31/2024

Categories

Internal Control / Segregation of Duties Student Financial Aid Material Weakness Reporting

Other Findings in this Audit

  • 403022 2023-001
    Material Weakness
  • 403023 2023-001
    Material Weakness
  • 403024 2023-002
    Significant Deficiency
  • 403025 2023-002
    Significant Deficiency
  • 403026 2023-002
    Significant Deficiency
  • 403027 2023-002
    Significant Deficiency
  • 979463 2023-001
    Material Weakness
  • 979464 2023-001
    Material Weakness
  • 979465 2023-001
    Material Weakness
  • 979466 2023-002
    Significant Deficiency
  • 979467 2023-002
    Significant Deficiency
  • 979468 2023-002
    Significant Deficiency
  • 979469 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.35M
84.063 Federal Pell Grant Program $1.16M
84.033 Federal Work-Study Program $23,002
84.007 Federal Supplemental Educational Opportunity Grants $19,444