Finding 502359 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-10-10

AI Summary

  • Core Issue: R2T4 calculations were inaccurate and submitted late, affecting federal fund returns.
  • Impacted Requirements: Compliance with 34 CFR 668.22 regarding timely and accurate return of Title IV funds.
  • Recommended Follow-Up: Implement a review process for R2T4 calculations and ensure proper calendar setups to meet regulations.

Finding Text

Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: R2T4’s were not always completed accurately or timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 10 withdrawals tested, 1 R2T4 was modular withdrawal was not properly calculated based on the 49% exemption, resulting in $507 of Pell being returned when the student actually earned the aid. 1 out of 10 withdrawals tested had $1,300 in Pell returned 8 days late. Cause: Both issues were in the Spring 2024 term when there was staffing turnover and challenges with the 2024-2025 FASFA rollout that required substantial staff time. Effect: Incorrect amounts of federal funding were returned. Unearned funds to return were not made within 45 days after the date of determination. Identification as repeat finding, if applicable: N/A Recommendation: We recommend an individual with appropriate return calculation knowledge review each calendar set up and ensure scheduled breaks are properly included in the calendar to align with regulations. Due to the complexity of the nonstandard term modular program R2T4 calculations, we recommend that a second review and approval of the calculation be completed as part of the R2T4 process. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Inaccurate and Untimely Return of Title IV Funds (R2T4) Planned Corrective Action: The R2T4 calendar has been set up and reviewed to properly align with regulations to ensure scheduled breaks are properly included for the standard programs. A second review of all R2T4 calculations will be completed and signed off by the Director of Financial aid as part of the R2T4 process. Person Responsible for Corrective Action Plan: Kenneth Piester Anticipated Date of Completion: 09/30/2024

Categories

Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.19M
84.063 Federal Pell Grant Program $2.23M
84.007 Federal Supplemental Educational Opportunity Grants $95,495
84.033 Federal Work-Study Program $79,541