Finding 47679 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-03
Audit: 46772
Organization: Wittenberg University (OH)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The University failed to follow proper procedures for awarding Pell grants and processing Title IV refunds, leading to incorrect calculations and delays.
  • Impacted Requirements: Compliance with federal regulations regarding Pell grant calculations, Title IV refund methods, and timely credit balance refunds.
  • Recommended Follow-up: Implement a quality assurance process with stronger controls to ensure compliance and prevent future errors.

Finding Text

Finding 2022-001 Federal Program: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.063 and 84.268 Federal Agency: Department of Education Award Year: 2022 Criteria: The University is required to implement procedures to appropriately administer funding under the Student Financial Assistance Cluster. ? Pell grants must be awarded based on the Public Law 115-141 appropriation schedule. ? The refund of Title IV aid should be calculated using the percentage of classes completed method. ? Credit balances related to Title IV federal aid funds, per regulations, must be refunded no later than 14 days after either the credit balance occurred on the student?s account or the first day of classes of the payment period. Condition: During the course of our testing: ? We identified one student from a sample of 40 who had a Pell grant calculated incorrectly. ? We identified one student from a sample of 2 who had their refund of Title IV incorrectly calculated. ? We identified one student from a sample of 25 whose credit was not refunded within 14 days. Cause: Administrative oversight by personnel in awarding and refund process. Context: Controls did not operate properly to award and refund students with Federal Direct loans or Pell grants. Effect: The University has not complied with certain requirements of FSA Handbook and Federal Code of Regulations to award or return aid properly to the students. Repeat Finding: No Recommendations: The University should implement and document an overall quality assurance process including adequate controls to prevent overall noncompliance. Corrective Action Plan: See management?s corrective action plan on page 44.

Corrective Action Plan

Identifying Number: 2022-001 Finding: During the course of testing, the University incorrectly calculated Pell grant on one student from a sample of 40, incorrectly calculated a Title IV refund on one student from a sample of 2, and did not complete a Title IV refund within 14 days on one student from a sample of 25. Corrective Action Taken or Planned: Wittenberg University's Office of Financial Aid has seen changes in staffing over the last two years with new employees having limited experience regarding student financial aid federal, state and institutional regulations. These changes have caused delays and misunderstandings related to Pell grant calculations and Title IV refund calculations. As of November 2021, one part-time financial aid employee was hired and in December 2021, the other open position (full-time status) was filled. With new employees being continuously trained and developed on federal, state and institutional guidelines, the Director of Financial Aid, or their designee, will review all calculations performed by employees moving forward. The institution will also implement reporting tools to ensure Pell, Title IV refunds, and other calculations are correct based on federal, state and institutional guidelines. Wittenberg University's Office of Student Accounts has also seen changes in staffing over the last two years with new employees having limited experience regarding accounts receivables and Title IV regulations. These changes have caused misunderstandings around Title IV refunds. The Office will implement new reporting tools where all credit balances on students' accounts will be reviewed and, if applicable, refunded at least once per week. The weekly reports and refunds will be monitored and reviewed by the Controller, or their designee, per week in consultation with the Office of Student Accounts. Completed Date: Fiscal year 2023

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 47680 2022-001
    Significant Deficiency
  • 47681 2022-002
    Significant Deficiency
  • 47682 2022-002
    Significant Deficiency
  • 624121 2022-001
    Significant Deficiency
  • 624122 2022-001
    Significant Deficiency
  • 624123 2022-002
    Significant Deficiency
  • 624124 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.28M
84.038 Federal Perkins Loan Program $2.41M
84.425 Education Stabilization Fund -Student Aid Portion $2.26M
84.063 Federal Pell Grant Program $1.84M
84.425 Education Stabilization Fund - Institutional Portion $1.15M
84.047 Trio_upward Bound $355,364
84.033 Federal Work-Study Program $224,625
84.007 Federal Supplemental Educational Opportunity Grants $135,245
47.049 Mathematical and Physical Sciences $56,689
47.050 Geosciences $7,737