Finding Text
Student Financial Assistance Cluster
Federal Supplemental Educational Opportunity Grants, ALN 84.007;
Federal Work-Study Program, ALN 84.033
Federal Pell Grant Program, ALN 84.063
Federal Direct Student Loans, ALN 84.268
Teacher Education Assistance for College and Higher Education Grants, ALN 84.379
U.S. Department of Education
Program Year 2022-2023
Criteria or specific requirement – Special Tests and Provisions – Return of Title IV Funds (34 CFR 668.22(a)(1) through (a)(5)
Condition – The University’s internal controls did not ensure the calculation of amounts to be returned to the U.S. Department of Education were correct and were performed timely.
Questioned costs - $1,610 – ALN 84.063; $1,967 – ALN 84.268
Context – Out of the population of 73 students who withdrew, 13 were selected for testing. Our sampling method was not, and was not intended to be, statistically valid. Total days in the semester for 1 of the withdrawals tested was calculated incorrectly and the amount was not returned to the U.S. Department of Education timely. The incorrect withdrawal date was used for 3 students and the incorrect amount was returned for 2 students.
Effect – The amount of Title IV funds returned to the U.S. Department of Education was incorrect and the funds were not returned timely.
Cause – The University’s internal controls did not ensure proper identification of withdrawal dates for unofficial withdrawals, did not ensure proper inputting of semester information into the calculation of returns of Title IV funds based on total days in the semester and total days attended, and did not ensure the amount calculated was returned to the U.S. Department of Education.
Identification as a repeat finding, if applicable – 2022-001 and 2021-001
Recommendation – The University should update their controls to ensure that the total days in the semester are calculated correctly based on proper identification of withdrawal dates for unofficial withdrawals, total days attended by students are calculated correctly, unofficial withdrawals are communicated timely, and proper amounts are returned to the U.S. Department of Education.
Views of responsible officials and planned corrective actions –
All official and unofficial withdrawals are performed by the Office of Student Records. The new university registrar and deputy director are working collaboratively with the Financial Aid Office to follow defined processes and procedures for both official and unofficial withdrawals. The registrar has developed a new standard operating procedure for processing official and unofficial withdrawals. The registrar has already completed the staff training on the new procedure.
The Financial Aid Office is responsible for calculating the return of Title IV funds (R2T4). The financial aid administrator selected the wrong template when performing one of the R2T4 calculations in COD. A new internal control procedure has been implemented to ensure that R2T4 calculations are reviewed for accuracy by a second financial aid administrator before being processed.