FAC Explorer

Finding 505276 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-11-11
Audit: 327902
Organization: Denver Seminary (CO)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: There were late returns of Title IV funds for students who withdrew or did not attend, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 668.22 regarding timely returns of funds.
  • Recommended Follow-Up: Review and verify last day of attendance dates in Campus Nexus reports to ensure accurate R2T4 calculations.

Finding Text

Untimely Returns of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: There were 2 late returns of funds for students that withdrew during the term and 1 additional late return of funds for a student that did not attend the term. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: 2 of 7 withdrawals tested had returns that were 109 and 259 days late totaling $622 and $668, respectively. 1 out of 7 had a late return of 128 days for $4,750 due to a delayed determination of non-attendance. These errors were discovered and corrected during the audit. After these errors were discovered, the Seminary completed a full file review of all 16 withdrawals to ensure accurate and timely R2T4 calculations noting no additional errors. Cause: The Seminary had staff turnover in the registrar’s office which caused miscommunication between the registrar and financial aid office as well as inaccurate system reports. Because of the inaccurate system reports, the student who didn’t attend wasn’t identified. Additionally, because of the reporting problem, the original returns for students that formally withdrew were based on an inaccurate last day of attendance used in the R2T4 calculation and the late return was due to the correction of the original returns. Effect: Federal funding was returned late. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that the Seminary review all dates provided by Campus Nexus reports to verify correct last day of attendance is used in R2T4 calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Untimely Returns of Title IV Funds (R2T4) Planned Corrective Action: Exception found during audit on several student returns of their Title IV aid. This was due to multiple factors. Campus Nexus, our SIS system, reported dates for LDA that did not line up with the drop date indicated by the professors on withdrawal/drop forms. A major shift in management of the Registrar’s office also occurred this year that left gaps in information. Our Student Life department that tracks start activity for a term did not translate data to our department for students with loans since they do not track loan borrowing in their system. During audit allstudents were reviewed, in addition to selections to ensure that LDAs were accurate for any R2T4s. As of the Fall 2024 term we will still run our Campus Nexus reports but will be reviewing all dates against withdrawal/drop forms for LDA listed by the professor. The Registrar’s office has a new staff that we are working closely with to ensure accurate data. We also are working directly with Student Life to review inactivity lists the first and second week of classes and are tracking students with loans. Any student with a loan without activity within the first week of classes, we will be returning funding. If they start activity in the second week and maintain activity prior to being dropped at the third week, we can reinstate their loans at their request. Person Responsible for Corrective Action Plan: Gina K Kelbert, Director of Financial Aid Anticipated Date of Completion: Effective since beginning of Fall term 2024.

Categories

Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 1081718 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.81M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $158,126
84.033 Federal Work-Study Program $59,746