FAC Explorer

Finding 409723 (2022-001)

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Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-26
Audit: 311937
Organization: Robert Morris University (PA)
Auditor: Deloitte & Touche LLP

AI Summary

  • Core Issue: Title IV funds were not returned within the required 45-day timeframe after a student withdrawal.
  • Impacted Requirements: Compliance with federal regulations for timely returns of Title IV funds.
  • Recommended Follow-Up: Revise policies and procedures to improve communication between departments regarding student withdrawals.

Finding Text

Reference Number 2022-01?Return of Title IV FundsFederal Program and Assistance Listing Number (ALN) ?Student Financial Aid Cluster.Criteria?Returns of Title IV funds are required to be deposited or transferred into the Student Financial Aid account or electronic fund transfers initiated to Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew.Statement of Condition?From a sample of six students with required Title IV returns, one student was identified for which the Title IV funds were not returned within the required time frame.Questioned Costs?None.Effect?Robert Morris University (the ?University?) did not return the Title IV funds within the required timeline (45 days).Underlying Cause?The University implemented a new information technology system in the current year; as a result, once a student withdrew, it was not automatically communicated to the financial aid office and, as a result, refunds were not processed in a timely manner.Recommendation?The University should revise its existing policies and procedures to allow sufficient time for communicating student withdraws and identifying return of Title IV funds within the prescribed timeline.Management?s Views and Corrective Action Plan?Please refer to the University?s Corrective Action Plan for management?s view and corrective action plan.

Corrective Action Plan

February 24, 2023Audit Response to Federal Grants Audit (A-133) - Return of Title IV Aid (R2T4)Analysis:Robert Morris University ("University") attributes the isolated delay in refunding Title IV funds in excess of the required 45-day window following the student's complete withdrawal to a student information system conversation (Banner) that occurred in June 2021. Banner replaced a legacy system that the University had used for decades. Specifically, customized reporting in Banner was needed in order to provide additional visibility so that the University could timely fulfill R2T4 obligations. As a result of the above, the University enacted several measures and safeguards to strengthen controls around the R2T4 process.Response:The University implemented the following control measures:-In September 2022, the University Registrar performed a retraining for all individuals who process complete withdrawals from the University. This training included a detailed walk through of all the steps required to timely and accurately process a complete withdrawal in Banner.-The University's IT department developed custom reports showing complete withdrawals from the University, which are generated and distributed to the Financial Aid office who reviews this report on a weekly basis to make sure withdrawals are completed timely and the appropriate financial aid adjustments are reflected on the students account.-On a monthly basis, the Senior Director of Student Financial Services now performs a double check review of a withdrawal report and alerts Financial Aid of any additional withdrawals that may meet the criteria for a return.Conclusion:The University deems that the control measures in place listed above are adequate and will prevent any future instances of untimely R2T4 funds. Overall, although the refunds were issued in excess of 45 days, the Department of Education did receive all required refunds in full and no amounts were outstanding at the time of the audit procedures.Keith A. RoeperChief Accounting Office and Controller and Assistant Treasurer

Categories

Student Financial Aid

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $25.20M
84.063 Federal Pell Grant Program $3.87M
84.038 Federal Work-Study Program $472,300
84.007 Federal Supplemental Educational Opportunity Grants $375,500
84.033 Federal Work-Study Program $265,739
12.300 Basic and Applied Scientific Research $229,073
47.076 Education and Human Resources $90,069
45.312 National Leadership Grants $57,120
12.420 Military Medical Research and Development $33,967
12.905 Cybersecurity Core Curriculum $20,937
12.600 Community Investment $10,232
84.425 Education Stabilization Fund $1,850