Finding 505405 (2022-009)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-11-12
Audit: 328114
Organization: Saint Augustine's University (NC)

AI Summary

  • Core Issue: Missing documentation for student withdrawals, including reimbursement dates and withdrawal dates.
  • Impacted Requirements: Non-compliance with Title IV aid regulations, affecting accurate refund processing for students.
  • Recommended Follow-Up: Establish clear procedures to document withdrawal and reimbursement details for all students who withdraw.

Finding Text

Condition: During our audit, we noted the following for certain students selected for testing that withdrew during the fiscal year: 1) no documentation was provided that indicated when the student was reimbursed, 2) no date of withdrawal was provided. Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the receipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of his/her withdrawal date. If the total amount of the Title IV assitance earned by the student is less than the amount disbursed as of the date of withdrawal, the difference must be returned to the Title IV programs with no additional disbursements made to the student for the payment period/period of enrollment. If the amount earned is greater than the amount disbursed, the differene mudt be treated as as post-withdrawal disbursement (34 CFR section 668.22(a)(1) through (a)(5)). Cause: Administrative oversight and lack of staff completion. Effect: The Univeristy is not in compliance with withdrawal reportin requirements. Failure to promptly report accurate and timely changes in enrollment status may adversly impact students receeiving refunds. Recommendation: We recommend that for all students that withdrew and are issued a refund, the University ensure that procedures are in place to clearly document the date of withdrawal, date of disburse,ent and amount of reimbursement, if any. Views of Responsible Officials and Planned Corrective Actions: The Univeristy implemented a comprehensive ERP software tool, Ellucian Colleague in FY2021 and FY2022 and hired more staff. The built- in internal control structure which includes access to enrollment reports and data coupled with a complete reconciliation process with the Office of Financial Aid, Office of the Registrar and Studen tAccounts will prevent this from recurring.

Corrective Action Plan

The Univesity implemented a comprehensive ERP software tool, Ellucian Colleague in FY2021 and FY2022 and hired more staff. The built-in internal control structure, which includes access to enrollment reports and data coupled with a complete reconciliation process with the Office of Financial Aid, Office of the Registrar and Student Account wills prevent this from recurring.

Categories

Internal Control / Segregation of Duties Student Financial Aid Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 505406 2022-010
    Material Weakness
  • 1081847 2022-009
    Material Weakness
  • 1081848 2022-010
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425E Covid-19 Higher Education Emergency Relief- Student Aid $9.27M
84.268 Federal Direct Student Loans $4.62M
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.27M
84.063 Federal Pell Grant Program $3.99M
84.031B Title III - Strengthening Historically Black Colleges and Universities Program $3.34M
84.938 Hurricane Education Recovery $3.23M
84.007 Federal Supplemental Educational Opportunity Grants $822,432
84.033 Federal Work-Study Program $511,270
84.044 Trio Talent Search $477,241
84.047 Trio Upward Bound $309,908
47.076 Stem Education (formerly Education and Human Resources) $113,498
15.904 Historic Preservation Fund Grants-in-Aid $47,080