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.