FAC Explorer

Finding 503653 (2024-001)

Significant Deficiency
Requirement
H
Questioned Costs
$1
Year
2024
Accepted
2024-10-24
Audit: 325860
Organization: Dunwoody College of Technology (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The College miscalculated Title IV aid for 24 out of 110 students, leading to a total questioned cost of $1,973 due to errors in the R2T4 calculations.
  • Impacted Requirements: Compliance with 34 CFR 668.22, which mandates accurate determination of earned and unearned Title IV funds based on student attendance.
  • Recommended Follow-Up: The College should correct the calculation errors and review scheduled break days for the next fiscal year to ensure compliance.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007 – Federal Supplemental Education Opportunity Grants 84.033 – Federal Work Study Program 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2023 to June 30, 2024 Type of Finding: * Significant Deficiency in Internal Control over Compliance * Other Matters Criteria or Specific Requirement: The Code of Federal Regulations 34 CFR 668.22, states that when students withdraw from a school, institutions are required to determine earned and unearned portions of Title IV aid as of the date the student ceased attendance based on the amount of time the student spent in attendance. Up through the 60% point in each payment period or period of enrollment, a pro rate schedule is used to determine the amount of Title IV funds the students earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period. Condition: During our testing it was noted that: 24 of 110 students tested resulted in a overpayment of $1,151 and underpayment of $3,124 of funds that should have been returned to the students based on individual students’ R2T4 calculation but was not. This lead to cumulative question costs of $1,973. Questioned Costs: $1,151 overpayment; $3,124 underpayment Context: The College incorrectly calculated the break days for all R2T4’s in the spring semester. Cause: The College has had turnover and there was no oversight over the withdrawal process and calculation of R2T4. Effect: There are questioned costs of $1,973. Repeat Finding: No. Auditors’ Recommendation We recommend that the College correct there mistake and review the amount of days scheduled in each break for next fiscal year. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Corrective Action Plan

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend that the College correct there mistake and review the amount of days scheduled in each break for next fiscal year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The finding was caused by incorrectly calculating the Spring Break dates in the academic calendar. The former Director of Financial Aid accounted for the weekdays of break (M-F=5 days) instead of the required full week plus shouldering weekend dates (9 calendar days) as it should have been entered. This erroneous entry was not noticed or caught in a self-audit process. We have completed a 100% file review of withdrawn students and updated the break calculation to correct the error for this year, and moving forward we will conduct two levels of review when entering calculation parameters to ensure accuracy of break calculation. We have updated the affected students’ R2T4 calculations and sent the fund updates to COD on September 20th. The corrective action taken by the current Director of Financial Aid is to ensure there are two extra reviewers added to each future parameter rollover to make sure all dates are accurate in our processing software, as well as a second review of each completed R2T4. Name of the contact person responsible for corrective action: Margaret Price, Director of Financial Aid Planned completion date for corrective action plan: This new process is already in place for the 2024-2025 academic year.

Categories

Questioned Costs Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 503654 2024-001
    Significant Deficiency
  • 503655 2024-001
    Significant Deficiency
  • 503656 2024-001
    Significant Deficiency
  • 503657 2024-002
    Significant Deficiency
  • 503658 2024-002
    Significant Deficiency
  • 503659 2024-002
    Significant Deficiency
  • 503660 2024-002
    Significant Deficiency
  • 503661 2024-003
    Significant Deficiency
  • 503662 2024-003
    Significant Deficiency
  • 503663 2024-003
    Significant Deficiency
  • 503664 2024-003
    Significant Deficiency
  • 1080095 2024-001
    Significant Deficiency
  • 1080096 2024-001
    Significant Deficiency
  • 1080097 2024-001
    Significant Deficiency
  • 1080098 2024-001
    Significant Deficiency
  • 1080099 2024-002
    Significant Deficiency
  • 1080100 2024-002
    Significant Deficiency
  • 1080101 2024-002
    Significant Deficiency
  • 1080102 2024-002
    Significant Deficiency
  • 1080103 2024-003
    Significant Deficiency
  • 1080104 2024-003
    Significant Deficiency
  • 1080105 2024-003
    Significant Deficiency
  • 1080106 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.92M
84.063 Federal Pell Grant Program $2.30M
84.007 Federal Supplemental Educational Opportunity Grants $131,462
84.033 Federal Work-Study Program $91,299