Finding 4296 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-14

AI Summary

  • Core Issue: A miscalculation occurred in the return of Title IV funds for 1 out of 25 students tested, but it did not lead to any financial impact.
  • Impacted Requirements: Schools must accurately determine earned and unearned Title IV aid based on attendance, as outlined in 34 CFR sections 668.22 and 668.2.
  • Recommended Follow-Up: Enhance the review process for Title IV fund calculations to catch errors promptly, especially during periods of low staffing.

Finding Text

Programs Affected U.S. Department of Education—Student Financial Assistance Cluster, AL 84.063, 84.007, 84.033, and 84.268—Award Year July 1, 2022—June 30, 2023. Criteria According to 34 CFR section 668.22, a school is required to determine the earned and unearned portions of Title IV aid as of the date the student ceased attendance based on the amount of time the student is in attendance or, in the case of a clock-hour program, was scheduled to be in attendance. 34 CFR Section 668.2 (f)(2)(i) further states the total number of calendar days in a payment period or period of enrollment includes all days within the period that the student was scheduled to complete. Condition While testing the return of Title IV funds, a nonstatistical sample of 25 students was tested for proper return calculations. During the testing, we noted 1 of 25 calculations were incorrectly calculated. We noted this did not result in additional funds to be returned. Cause This occurred during a time of low staffing in the student financial aid office and high volume of activity. While the calculation was performed by one individual and reviewed by a second individual, the review did not identify the miscalculation. While, the calculation of total days was miscalculated, the percentage earned and unearned by Title IV student that withdrew did not significantly change. As a result, there was no financial impact. Questioned Costs None. Effect Without effective review, students withdrawing could have improper calculations of aid earned and unearned due to the miscalculated total number of days. Recommendation We recommend additional emphasis be placed on the reviewer function within the return of title funds process, to timely identify errors, even in times of staffing shortages. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding. See attached Corrective Action Plan.

Corrective Action Plan

Finding 2023-001 Correc􀆟ve Ac􀆟on Plan This is a response to Finding 2023-001 listed in the Schedule of Findings and Ques􀆟oned Costs for Federal Awards. Unity Environmental University agrees with this finding and has taken the following correc􀆟ve ac􀆟ons to prevent recurrence of such findings. While tes􀆟ng the return of Title IV funds, a nonsta􀆟s􀆟cal sample of 25 students was tested for proper return calcula􀆟ons. During the tes􀆟ng, 1 of 25 calcula􀆟ons were incorrectly calculated. The error did not result in addi􀆟onal funds to be returned. The student in ques􀆟on had a􀆩ended one module of two in the graduate program payment period. When the recalcula􀆟on was performed, the full payment period was used. The student had earned 100% of aid due to comple􀆟ng 60% of the period. The error was not caught by the second reviewer. This occurred during a 􀆟me of low staffing in the financial aid office and a high volume of ac􀆟vity. The calcula􀆟on was corrected but no addi􀆟onal funds needed to be returned as the student s􀆟ll earned 100% of aid due to comple􀆟ng 60% of the module. In an abundance of cau􀆟on, the financial aid staff reviewed R2T4 calcula􀆟ons completed for all graduate students. No addi􀆟onal errors were found. The financial aid staff met to discuss the finding and management emphasized the impact to the student and ins􀆟tu􀆟on when these errors occur. We believe this was an isolated incident and the staff understands the importance of the second reviewer role to avoid such errors. Responsible Person: Sherry Watson Correction Date: 06/27/23

Categories

Student Financial Aid HUD Housing Programs

Other Findings in this Audit

  • 4297 2023-001
    Significant Deficiency
  • 4298 2023-001
    Significant Deficiency
  • 4299 2023-001
    Significant Deficiency
  • 580738 2023-001
    Significant Deficiency
  • 580739 2023-001
    Significant Deficiency
  • 580740 2023-001
    Significant Deficiency
  • 580741 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $27.67M
84.063 Federal Pell Grant Program $11.32M
84.007 Federal Supplemental Educational Opportunity Grants $195,240
84.033 Federal Work-Study Program $39,005
94.006 Americorps $25,834
10.855 Distance Learning and Telemedicine Loans and Grants $20,777