Finding 515150 (2024-001)

-
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-17
Audit: 333193
Organization: Friends University (KS)

AI Summary

  • Core Issue: The University failed to calculate and return Title IV funds within the required 45 days after students withdrew, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR section 668.22 regarding the timely return of Title IV funds for students who withdraw from enrollment.
  • Recommended Follow-Up: Implement measures to ensure accurate data for refund calculations and establish timely oversight to prevent future delays.

Finding Text

U.S. Department of Education Student Financial Assistance Cluster Assistance Listing No. 84.268 - Federal Direct Student Loans Assistance Listing No. 84.063 - Federal Pell Grant Program Assistance Listing No. 84.007 - Federal Supplemental Educational Opportunity Grants Assistance Listing No. 84.033 - Federal Work-Study Program Assistance Listing No. 84.038 - Federal Perkins Loan Program Assistance Listing No. 84.379 - Teacher Education Assistance for College and Higher Education Grants Program Year 2024 Criteria or Specific Requirement – Special Tests and Provisions - Return of Title IV Funds (34 CFR section 668.22) - 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 recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs within 45 days and no additional disbursements may be made to the student for the payment period or period of enrollment. Condition – The University did not initially calculate the return of Title IV funds in accordance with federal regulations. Upon further internal review, the calculations were corrected, but not within the 45 day requirement. Questioned Costs – None Context – Out of a population of 53 students who received federal aid and withdrew during the year ended June 30, 2024, we selected a sample of six students that received federal aid. We noted the return of Title IV funds was not made within 45 days of the students withdrawal for students who withdrew during the Spring semester, which was not in accordance with federal regulations. The sample was not, and was not intended to be, a statistically valid sample. Effect – Refunds were not remitted timely for students who withdrew during the year. (continued) Cause – Inaccurate information was included in the Federal Student Financial Aid refund calculations. The number of days in a semester should be decreased by any breaks that last five consecutive days or longer. Breaks of at least five consecutive days for Thanksgiving and Spring Break were not considered. This error was identified internally by the University during the year and corrected, but it was identified outside the 45 day requirement. Identification as a Repeat Finding – N/A Recommendation – The University should take appropriate action to ensure information used to support student refund calculations is accurate and ensure proper oversight is performed timely. Views of Responsible Officials and Planned Corrective Actions – Management concurs with the findings and recommendations. See separate report for planned corrective actions.

Corrective Action Plan

Responsible personnel will review calculations as they are completed.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.83M
84.063 Federal Pell Grant Program $2.53M
21.027 Coronavirus State and Local Fiscal Recovery Funds $582,888
84.038 Federal Perkins Loan Program $277,050
84.031 Higher Education Institutional Aid $250,221
84.033 Federal Work-Study Program $208,975
84.007 Federal Supplemental Educational Opportunity Grants $135,171
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $9,430