Finding 513630 (2024-001)

Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing #84.268 Federal Direct Student Loans - 2023/2024 P268K241430 Federal Financial Assistance Listing #84.063 Federal Pell Grant Program - 2023/2024 P063P231430 Special Tests & Provisions: Return of Title IV Funds Material Weakness in Internal Control over Compliance Criteria: The unearned amount of Title IV assistance to be returned is calculated by subtracting the amount of Title IV assistance earned by the student from the amount of Title IV aid that was disbursed to the student as of the date of the institution’s determination that the student withdrew (34 CFR 668.22(e)). Condition: One instance was identified where there was no documented return of Title IV calculation, and fourteen instances were identified where there was no documented review of the return of Title IV calculation. Cause: The University did not have a formal, documented control process to ensure all students who withdrew from courses had a return of Title IV calculation completed or a review of the return of Title IV calculation that was completed to ensure accuracy and reasonableness. Effect: Without a formal process to document the completion and review of return of Title IV calculations, there is a possibility that the calculation could be incorrect or not completed and funds returned could be incorrect or not returned when required to be. Questioned Costs: None reported Context/Sampling: Of the 112 students withdrawn during the year, 22 students were tested. Repeat Finding from Prior Years: Yes, prior year finding 2023-003 Recommendation: The University should review its establish a formal process and controls to ensure that a return of Title IV calculation is completed and documented for all withdrawn students and that the review process is also documented. Views of Responsible Officials: Management agrees. Management’s complete response can be found in the separately issued corrective action plan.