Finding 45927 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-17
Audit: 40425
Organization: University of Saint Joseph (CT)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: A student received their Title IV credit balance 15 days after it was created, exceeding the 14-day requirement.
  • Impacted Requirements: Timely payment of credit balances is crucial for compliance with 34 CFR 668.164(h)(2), affecting the school's financial responsibility evaluation.
  • Recommended Follow-Up: The University should review and improve processes for handling Title IV credit balances to ensure compliance with the 14-day rule.

Finding Text

Finding No. 2022-002 ? Title IV Credit Balances Federal Agency: U.S. Department of Education (DOE) Program: Student Financial Assistance Cluster ? Federal Direct Loan Program: ALN: 84.268 Criteria: A Title IV credit balance must be paid directly to the student or parent as soon as possible but no later than (i) 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (ii) 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period (34 CFR 668.164(h)(2)). Condition: Of the 40 students with credit balances that we selected for test work, we identified 1 student whose credit balance was paid to the student 15 days after the credit balance was created. Questioned Costs: None. Prevalence: Identified in 1 out of 40 students tested. The sample was not intended to be, and was not, a statistically valid sample. Effect: Returning funds in a timely manner is one of the factors examined by the Department in evaluating a school?s financial responsibility. Cause: The University had new staff in the accounting department who misinterpreted the applicable guidance. One of the days within the 15-day period was a banking holiday and was not included in the day count. Recommendation: We recommend that the University review its processes around Title IV credit balances to ensure they are returned to students as soon as possible but no later than 14 days after the credit balance is generated. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and corrective measures are being made.

Corrective Action Plan

Finding No. 2022-002 - Title IV Credit Balances The missing of the fourteen-day deadline by one day was an outlier caused by new staff lacking an understanding of how to calculate the timeframe when a holiday is involved. All staff involved in the refund process have been retrained in the regulations that must be followed. Rogen Miller, Bursar, is responsible for this corrective action plan which has been implemented.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 45925 2022-001
    Significant Deficiency
  • 45926 2022-001
    Significant Deficiency
  • 622367 2022-001
    Significant Deficiency
  • 622368 2022-001
    Significant Deficiency
  • 622369 2022-002
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $31.50M
84.063 Federal Pell Grant Program $1.67M
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $558,027
84.038 Federal Perkins Loan Program $369,943
84.033 Federal Work-Study Program $331,959
84.007 Federal Supplemental Educational Opportunity Grants $203,285
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $140,617
47.076 Education and Human Resources $122,283
84.425 Education Stabilization Fund $23,715
93.184 Disabilities Prevention $17,315
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,558
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $3,712
47.074 Biological Sciences $2,879
21.019 Coronavirus Relief Fund $2,406
93.575 Child Care and Development Block Grant $396