Finding 50019 (2022-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-03-28

Audit: 49718

Organization: Mary Baldwin University (VA)

Auditor: Brown Edwards

AI Summary

Core Issue: Title IV funds must be returned promptly after a student withdraws.
Impacted Requirements: Funds should be deposited or transferred within 45 days of withdrawal determination.
Recommended Follow-up: Ensure compliance with 34 CFR Section 668.173(b) to avoid penalties.

Finding Text

Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew in accordance with 34 CFR Section 668.173(b)

Corrective Action Plan

The University is modifying the withdrawal procedure to provide more specific rules and instructions related to R2T4 requirements and timeliness. Included in those procedures will be earlier recognition of COVID events which may allow the student to decline or keep Title IV funds if deemed COVID related. Those temporary requirements at times have caused MBU to exceed the 45-day window.

Other Findings in this Audit

626461 2022-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.268	Federal Direct Student Loans	$22.76M
84.063	Federal Pell Grant Program	$4.07M
84.425	Education Stabilization Fund	$1.42M
84.033	Federal Work-Study Program	$253,371
84.007	Federal Supplemental Educational Opportunity Grants	$171,421
84.379	Teacher Education Assistance for College and Higher Education Grants (teach Grants)	$49,506