Finding Text
Finding No. 2022-003 - Special Test and Provisions ? Return of Title IV Funds - Timing Federal Program Students Financial Assistance Programs Cluster: Assistance Listing 84.007 - Federal Supplemental Educational Opportunity Grants (FSEOG) Assistance Listing 84.033 - Federal Work-Study Program Assistance Listing 84.063 - Federal Pell Grant Program Assistance Listing 84.268 - Federal Direct Student Loans Program Name of Federal Agency U.S. Department of Education Pass-through Entity N/A Criteria 34 CFR Section 668.173(b) states that returns of Title IV Funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the USDE as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Condition In testing compliance with the requirements for the Return of Title IV funds, we selected all nine (9) students who withdrew, dropped out or failed to attend to the University and had received Title IV funds for the academic period in which the student withdrew, dropped out or failed to attend to the University. As a result of our testing of these compliance requirements, we noted one (1) instance, or 11% of the sample selected, in which the University failed to return the Title IV funds (Pell) within 45 days of determining the withdrawal date, as follows: ?See Schedule of Findings and Questioned Costs for chart/table? Context Of the nineteen (19) cases of students who withdrew, dropped out, or failed to attend the University, we selected all nine (9) students that had received Title IV funds for the academic period in which the student withdrew, dropped out or failed to attend to the University and noted one (1) instance of noncompliance (PELL) with the required criteria.The composition of the audit samples for the Pell grant program and the population from which the samples were drawn were as follows: ?See Schedule of Findings and Questioned Costs for chart/table? Cause The student?s withdrawal was not properly processed by the Registration Department on a timely basis due to human error. Effect As a result of this condition, the USDE may issue warnings and/or impose penalties on the University. In addition, it could result in reduced availability of federal funds to other students in need of financial assistance. Questioned Cost As of the date the financial statements were available to be issued, questioned costs were not determined, since the amount of $2,036 had been paid by the University. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2021-005. Recommendation The University needs to improve its processes, including the communication between departments, to ensure that the return of Title IV funds is made within the prescribed period of time. Views of responsible officials and corrective action plan The University management agrees with this finding. Please refer to the corrective action plan on pages 66-76.