Finding 501176 (2024-007)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2024-10-01
Audit: 323427
Organization: Virginia Union University (VA)

AI Summary

  • Core Issue: Inadequate tracking of student attendance led to incorrect refund calculations for students who unofficially withdrew.
  • Impacted Requirements: Regulations mandate refunds for withdrawals within the first 60% of the semester; one student was incorrectly refunded after this period.
  • Recommended Follow-Up: The University should enhance monitoring of attendance records to ensure accurate handling of federal aid for students who stop attending.

Finding Text

Criteria: Regulations require Institutions to consider students who have stopped attending classes in the semester to be considered an unofficial withdrawal. If a student withdraws officially or unofficially within the first 60% of the semester, the Institution must calculate a refund to the student’s account statement. If a student withdraws after the 60% date in the semester, they are considered to have earned their aid and will not have a refund calculated. Condition: We tested the withdrawal process for eleven students. Out of these eleven, seven students withdrew in a period of 60% and needed a calculation of the return of funds to be made. We noted that one of these students received a refund of aid, though they did not cease attending their classes until after the 60% mark. Cause: Process and controls over attendance records and unofficial withdrawals are insufficient. Effect: Federal funds were returned to the Department of Education when the student had in fact earned the aid for the semester. Questioned costs: -$4,983 Identification of repeat findings: Not a repeat finding. Recommendation: The University should closely monitor the attendance records of students to ensure that if a student stops attending but returns later in the semester, that any issues with federal aid are addressed timely and appropriately. Views of responsible officials: The University agrees with the finding. See Client’s Corrective Action Plan – Single Audit Findings.

Corrective Action Plan

Criteria: Regulations require Institutions to consider students who have stopped attending classes in the semester to be considered an unofficial withdrawal. If a student withdraws officially or unofficially with the first 60% of the semester, the Instiution must calculate a refund to the student's account statement. If a student withdraws after the 60% date in the semester, they are considered to have earned thier aid and will not have a refund calculated. The University concurs with the audit finding and will adhere to the corrective action plan. Corrective Action Plan: With the assistance of IT and the Registrar, Virginia Union University implemented a report to identify students who have stopped attending classes for more than 14 days. Students in this situation are considered as Unofficial Withdrawals. Once these students are identified, Return to Title IV calculations are performed, and these funds are returned accordingly. Sometimes, students return to classes and reestablish eligibility, as was the case for the student in question. If the students continue to attend courses thorugh the 60% point in the semester, aid can be reinstated once the student is identified. The aid for the student in question has been reinstated. From this point forward, the weekly attendance reports will be compared from week to week to ensure aid is reinstated to students who return to classes. In addition, the Return to Title IV policy and procedures will be updated to account for students who return to classes. Responsible person(s): Doreen Dixon, Registrar, ddixon@vuu.edu, 804-257-5845. Robert Merino, Executive Director of Financial Aid, jrmerino@vuu.edu, 804-254-3973. Planned Date of Completion of Corrective Action: December 31, 2024.

Categories

Questioned Costs

Other Findings in this Audit

  • 501168 2024-005
    Significant Deficiency Repeat
  • 501169 2024-005
    Significant Deficiency Repeat
  • 501170 2024-005
    Significant Deficiency Repeat
  • 501171 2024-005
    Significant Deficiency Repeat
  • 501172 2024-006
    Significant Deficiency Repeat
  • 501173 2024-006
    Significant Deficiency Repeat
  • 501174 2024-006
    Significant Deficiency Repeat
  • 501175 2024-006
    Significant Deficiency Repeat
  • 501177 2024-007
    -
  • 501178 2024-007
    -
  • 501179 2024-007
    -
  • 1077610 2024-005
    Significant Deficiency Repeat
  • 1077611 2024-005
    Significant Deficiency Repeat
  • 1077612 2024-005
    Significant Deficiency Repeat
  • 1077613 2024-005
    Significant Deficiency Repeat
  • 1077614 2024-006
    Significant Deficiency Repeat
  • 1077615 2024-006
    Significant Deficiency Repeat
  • 1077616 2024-006
    Significant Deficiency Repeat
  • 1077617 2024-006
    Significant Deficiency Repeat
  • 1077618 2024-007
    -
  • 1077619 2024-007
    -
  • 1077620 2024-007
    -
  • 1077621 2024-007
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $15.28M
84.063 Federal Pell Grant Program $5.12M
11.028 Connecting Minority Communities Pilot Program $1.45M
84.116 Fund for the Improvement of Postsecondary Education $545,961
84.031 Higher Education_institutional Aid $458,706
47.076 Education and Human Resources $367,430
84.047 Trio_upward Bound $293,423
84.042 Trio_student Support Services $279,221
84.217 Trio_mcnair Post-Baccalaureate Achievement $274,078
84.044 Trio_talent Search $267,160
84.007 Federal Supplemental Educational Opportunity Grants $204,518
84.033 Federal Work-Study Program $202,379
84.021 Overseas Programs - Group Projects Abroad $119,602
45.162 Promotion of the Humanities_teaching and Learning Resources and Curriculum Development $68,168
45.309 Museum Grants for African American History and Culture $58,556