Finding 42230 (2022-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-08-13
Audit: 46355
Organization: Pillar College and Subsidiaries (NJ)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The College failed to return unearned Title IV aid accurately and on time for students who withdrew, with delays ranging from 39 to 422 days.
  • Impacted Requirements: Compliance with 34 CFR 668.22 was not met, resulting in questioned costs of $19,131 and incorrect calculations for some students.
  • Recommended Follow-Up: Financial aid should collaborate with the registrar and third-party administrator to ensure timely R2T4 processing and conduct a review of students with federal aid and no passing grades each term.

Finding Text

Inaccurate and Untimely Returns to Title IV (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.007, 84.063 and 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew from a term either officially or unofficially, the College did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $19,131 Context: Out of 12 students tested, 6 students did not have R2T4?s completed timely in the amount of $20,672 returned late ranging from 39 to 422 days late. 5 of these were corrected in March 2023 as part of the audit process. 2 of the 6 students also had incorrect R2T4?s completed due to incorrect funds disbursed and number of days in the term resulting in an additional $42 in federal direct loans, $62 in Pell and $62 in FSEOG to be returned. Cause: There is no review being completed at the end of each term of students with federal aid and no passing grades to determine if an R2T4 is required. Effect: Return of Title IV funds were not performed timely and accurately. Identification as repeat finding, if applicable: 2021-002 Recommendation: We recommend that the financial aid office work closely with the registrar office and their third party administrator to ensure that R2T4s are completed timely when students cease attendance during the term. We also recommend that the financial aid office review all students with federal aid and no passing grades at the end of each term to ensure that if an R2T4 is required, it is completed timely. With multiple calendars used in R2T4 calculations, we recommend that a secondary review be completed when the R2T4 templates are set up to ensure the correct number of days are used in the calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Inaccurate and Untimely Returns to Title IV Planned Corrective Action: Pillar College changed the R2T4 policy in the catalog and created an R2T4 form to monitor the process. Our operating system, Anthology, has been upgraded to include automatic triggers. The automated system alerts financial aid, the third-party servicer and the registrar to process and critique the effects of the student?s official and/or unofficial withdrawal. Three specific processes have been created and are combined under ?Withdrawal Process Flow Charts: Official, Unofficial and Non-Returning Student?. After analysis the financial aid office and third-party servicer determine the potentiality of funds to be returned to Title IV in a timely manner. Person Responsible for Corrective Action Plan: Betzi Schroeder, Financial Aid Officer Anticipated Date of Completion: current

Categories

Student Financial Aid Material Weakness Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 42229 2022-002
    Material Weakness
  • 42231 2022-004
    Significant Deficiency
  • 42232 2022-005
    Significant Deficiency
  • 42233 2022-002
    Material Weakness
  • 42234 2022-003
    Material Weakness Repeat
  • 42235 2022-004
    Significant Deficiency
  • 42236 2022-006
    -
  • 42237 2022-003
    Material Weakness Repeat
  • 49674 2022-004
    Significant Deficiency
  • 49675 2022-003
    Material Weakness Repeat
  • 49676 2022-004
    Significant Deficiency
  • 49677 2022-004
    Significant Deficiency
  • 49678 2022-007
    -
  • 49679 2022-008
    -
  • 49680 2022-007
    -
  • 49681 2022-008
    -
  • 618671 2022-002
    Material Weakness
  • 618672 2022-003
    Material Weakness Repeat
  • 618673 2022-004
    Significant Deficiency
  • 618674 2022-005
    Significant Deficiency
  • 618675 2022-002
    Material Weakness
  • 618676 2022-003
    Material Weakness Repeat
  • 618677 2022-004
    Significant Deficiency
  • 618678 2022-006
    -
  • 618679 2022-003
    Material Weakness Repeat
  • 626116 2022-004
    Significant Deficiency
  • 626117 2022-003
    Material Weakness Repeat
  • 626118 2022-004
    Significant Deficiency
  • 626119 2022-004
    Significant Deficiency
  • 626120 2022-007
    -
  • 626121 2022-008
    -
  • 626122 2022-007
    -
  • 626123 2022-008
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.39M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $1.49M
84.063 Federal Pell Grant Program $1.20M
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $963,041
84.425 Covid 19 Education Stabilization Fund Heerf - Minority Serving Institutions $167,875
84.007 Federal Supplemental Educational Opportunity Grants $36,835
84.033 Federal Work-Study Program $20,809
84.007 Covid-19 Federal Supplemental Educational Opportunity Grants $12,854