Finding 45358 (2022-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-01-03
Audit: 47561

AI Summary

  • Core Issue: The University failed to accurately calculate and return Title IV funds due to discrepancies in withdrawal dates, leading to untimely returns and incorrect calculations.
  • Impacted Requirements: Compliance with federal regulations for Title IV fund returns, including timely processing and obtaining student authorization for post-withdrawal disbursements.
  • Recommended Follow-Up: Implement controls for accurate Title IV calculations and returns, retrain staff on proper procedures, and establish a review process for ongoing compliance.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - Department of Education - Federal Direct Student Loan Program ALN 84.268, Federal Pell Grant Program ALN 84.063, and Federal Supplemental Education Opportunity Grant Program No. 84.007 Federal Award Identification Number and Year - Various Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes - 2021-003 Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended)(34 CFR 668.22(j)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. (34 CFR Section 668.22). Post withdrawal disbursements must be made from available grant funds before available loan funds (34 CFR 668.22(a)(6)). Post withdrawal disbursements of grant funds may be credited to the student?s account, without the student?s authorization, for current year outstanding charges for tuition, fees, and room and board (if contracted with the institution) on the student?s account, up to the amount of those outstanding charges. For current year outstanding charges other than tuition, fees, and room and board (if contracted with the institution), the institution must have the student?s authorization to credit the student?s account with grant funds. Condition - The University has discrepancies between the date utilized in the return to Title IV calculations and the withdrawal date required to be used based on federal regulations. The discrepancies in withdrawal dates resulted in untimely returns of Title IV funds and inaccurate return calculations. The University did not complete Title IV calculations based on federal regulations which resulted in untimely returns of Title IV funds and inaccurate return calculations. The University did not obtain student authorization prior to crediting student account for post withdrawal disbursement. Questioned Costs - $4,244 Identification of How Questioned Costs Were Computed - Recalculation of returns was based on consistent semester end dates. Context - There were four errors that attributed to this finding: 1) Of the 21 students tested, there were 4 students with discrepancies between the date utilized in return to Title IV calculations and the date required to be utilized based on Federal regulations resulting in $2,675 in questioned costs. 2) Of the 21 students tested there were 2 students identified where the University did not calculate the R2T4 correctly resulting in $1,569 in questioned costs. 3) Of the 21 students tested there were 5 students identified where the University had returned the funds untimely (45 days if student attended, 30 days if never attended) 4) Of the 21 students tested there was 1 student identified where the University did not obtain authorization from student prior to crediting account for post withdrawal disbursement. Cause and Effect - The University did not have a control in place to ensure all Title IV calculations, Title IV refunds and post withdrawal disbursements are initiated timely and accurately. Recommendation - The University should implement controls to ensure all Title IV calculations, returns of Title IV refunds and post withdrawal disbursements are initiated timely and accurately. Views of Responsible Officials and Corrective Action Plan - One Stop Center staff were retrained on September 7th on the process of backdating a drop/withdraw to the appropriate date. This training will continue to be ongoing to be sure they are aware and understand the importance of the backdating being accurate. An error report has been created that can identify if the last date of attendance is equal to the date the transaction took place. If students appear on this report further investigations will be done to determine if it is the accurate date to use. R2T4 calculations are always processed on students who withdraw without regard to percentage of time attended. The staff will continue to process R2T4 in Banner for withdrawn students who receive federal aid, with a secondary calculation using the COD online R2T4 calculator to confirm outcomes. The student found regarding post withdrawal was an oversight. Notification letters will be mailed to students who are eligible for the Post Withdrawal disbursements requesting the student acceptance of offered aid. This area will also become a review item in our process to review R2T4 calculations weekly.

Categories

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

Other Findings in this Audit

  • 45353 2022-003
    Material Weakness Repeat
  • 45354 2022-004
    Significant Deficiency Repeat
  • 45355 2022-003
    Material Weakness Repeat
  • 45356 2022-003
    Material Weakness Repeat
  • 45357 2022-004
    Significant Deficiency Repeat
  • 45359 2022-004
    Significant Deficiency Repeat
  • 45360 2022-003
    Material Weakness Repeat
  • 45361 2022-004
    Significant Deficiency Repeat
  • 45362 2022-002
    Significant Deficiency
  • 45363 2022-002
    Significant Deficiency
  • 45364 2022-002
    Significant Deficiency
  • 45365 2022-002
    Significant Deficiency
  • 45366 2022-002
    Significant Deficiency
  • 45367 2022-001
    Significant Deficiency Repeat
  • 621795 2022-003
    Material Weakness Repeat
  • 621796 2022-004
    Significant Deficiency Repeat
  • 621797 2022-003
    Material Weakness Repeat
  • 621798 2022-003
    Material Weakness Repeat
  • 621799 2022-004
    Significant Deficiency Repeat
  • 621800 2022-003
    Material Weakness Repeat
  • 621801 2022-004
    Significant Deficiency Repeat
  • 621802 2022-003
    Material Weakness Repeat
  • 621803 2022-004
    Significant Deficiency Repeat
  • 621804 2022-002
    Significant Deficiency
  • 621805 2022-002
    Significant Deficiency
  • 621806 2022-002
    Significant Deficiency
  • 621807 2022-002
    Significant Deficiency
  • 621808 2022-002
    Significant Deficiency
  • 621809 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.19M
84.063 Federal Pell Grant Program $2.17M
84.425 Covid-19 - Education Stabilization Fund $958,752
84.038 Federal Perkins Loan Program $394,393
11.307 Economic Adjustment Assistance $211,319
81.041 State Energy Program $204,336
84.033 Federal Work-Study Program $161,808
84.007 Federal Supplemental Educational Opportunity Grants $105,376
20.200 Highway Research and Development Program $93,880
21.027 Covid - 19 - Coronavirus State and Local Fiscal Recovery Funds $75,894
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $63,860
11.024 Build to Scale $63,344
47.070 Computer and Information Science and Engineering $52,395
47.041 Engineering $44,118
66.469 Great Lakes Program $34,415
47.049 Mathematical and Physical Sciences $20,540
81.010 Office of Technology Transitions (ott)-Technology Deployment, Demonstration and Commercialization $13,571
93.262 Occupational Safety and Health Program $12,005
12.RD Ground Vehicle Sysytems Other Transaction Agreement $1,400
45.149 Promotion of the Humanities_division of Preservation and Access $1,323
47.076 Education and Human Resources $745
17.502 Occupational Safety and Health_susan Harwood Training Grants $594
47.074 Biological Sciences $400
84.133 National Institute on Disability and Rehabilitation Research $337