Finding 503536 (2024-001)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2024-10-23
Audit: 325664
Organization: University of St. Francis (IL)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: The University failed to accurately calculate and return Title IV funds for two out of eleven students who withdrew, leading to non-compliance.
  • Impacted Requirements: This finding violates 34 CFR 668.22, which mandates proper calculation of earned Title IV assistance upon student withdrawal.
  • Recommended Follow-Up: The University should enhance monitoring and update its calculation system to ensure correct attendance dates are used for Title IV returns.

Finding Text

2024-001: Errors Relating to Return of Title IV Financial Aid - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.038, 84.063, 84.268, 84.379, 93.264 Grant Period - Year Ended May 31, 2024 Criteria: According to 34 CFR 668.22 when a recipient of Title IV grant or loan assistance withdraws from a College during a payment period or period of enrollment in which the recipient began attendance, the College must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. Condition: During our return of Title IV Fund testing we noted that the University did not calculate or return Title IV for students who ceased attendance correctly for two students out of eleven. The University used the incorrect number of days for the total days in the period of enrollment when calculating the return of Title IV. We consider this to be an instance of non-compliance relating to the Special Tests and Provisions Compliance Requirement. Statistical sampling was not used when making sample selections. Questioned Costs: $129 Effect: The College did not properly calculate the return of Title IV for two students out of eleven. Cause: The University’s internal controls did not identify the fact that the incorrect number of days the student attended when calculating the return of Title IV. Recommendation: We recommend the University monitors and updates their system used for return of Title IV calculations with the correct dates. Views of Responsible Officials: Management agrees with this finding and response is included in Corrective Action Plan.

Corrective Action Plan

2024-001: Errors Relating to Return of Title IV Financial Aid - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.038, 84.063, 84.268, 84.379, 93.264 Grant Period - Year Ended May 31, 2024 Condition Found During our return of Title IV Fund testing we noted that the University did not calculate or return Title IV for students who ceased attendance correctly for two students out of eleven. The University used the incorrect number of days for the total days in the period of enrollment when calculating the return of Title IV.We consider this to be an instance of non-compliance relating to the Special Tests and ProvisionsCompliance Requirement. Corrective Action Plan Moving forward, the financial aid team will implement internal controls: Marlon Jones, Director of Financial Aid will process the R2T4 using COD instead of Banner. So, Marlon will ensure that the dates for fall break (fall term)/spring break (spring term) are properly utilized within the R2T4 calculations, prior to the start of the terms. After Marlon’s initial process of completing the R2T4 calculation in COD, Erika Guzman, Associate Director, will check the completed R2T4 to ensure precise calculations. This new addition will ensure that two people are determining the accuracy of the R2T4’s, as well as ensuring that the breaks during the terms, are included. Responsible Person for Corrective Action Plan Marlon Jones Jr and Erika Guzman Implementation Date of Corrective Action Plan 9/23/2024

Categories

Questioned Costs Special Tests & Provisions Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $13.32M
84.063 Federal Pell Grant Program $3.12M
84.038 Federal Perkins Loan Program $405,603
59.059 Congressional Earmarks Initiative $384,103
84.007 Federal Supplemental Educational Opportunity Grants $215,249
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $200,000
84.031 Higher Education_institutional Aid $163,534
84.033 Federal Work-Study Program $148,686
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $102,279
93.247 Advanced Nursing Education Grant Program $95,101
93.264 Nurse Faculty Loan Program (nflp) $65,144
47.076 Education and Human Resources $45,460
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $27,346