Finding 516389 (2024-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-20
Audit: 334328
Organization: McMurry University (TX)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The University failed to return unearned Title IV funds accurately and on time for students who withdrew, leading to significant errors in calculations.
  • Impacted Requirements: Compliance with 34 CFR 668.22 regarding timely and accurate return of Title IV funds.
  • Recommended Follow-Up: Provide training on R2T4 regulations and implement a review process for calculations; ensure retention of academic activity records for all distance education students.

Finding Text

Inaccurate and Untimely Returns of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 and 84.007 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely and return calculations were not done correctly consistently. Additionally, the University was not able to provide support of academic activity for some distance education students who had no passing grades to determine if they began attendance. Criteria: 34 CFR 668.22 Questioned Costs: $18,809 Context: Out of 22 students tested, 8 total students had errors: • 3 students had late returns totaling $7,776 in FDL and Pell. • 6 students had incorrect calculations resulting in $1,568 in FDL and Pell being under-returned and $76 in FDL being over-returned. • 3 distance education students did not have records of academic activity retained by the University. These students received $9,465 in FDL and Pell. These were not corrected during the audit. Cause: Misunderstanding of modular withdrawal R2T4 calculations. Additionally, the University switched systems used to administer distance education programs. Effect: Return of Title IV funds were not performed accurately and timely. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend the University perform additional training on R2T4 regulations and implement a second review on R2T4 calculations performed. We also recommend the University retain academic activity for all distance education students without passing grades. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

R2T4 Finding Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster ALN: 84.268, 84.063 and 84.007 Finding Summary: Errors in return to Title IV calculations: Calculations for five students included various errors. Errors included one late determination of withdrawal date (more than 30 days after the end of the period of enrollment), three returns completed more than 45 days after the withdrawal date, two incorrect percentage of aid earned calculations, and one overpayment to the Department of Education. Responsible Individuals: Tim Sechrist, Director of Financial Aid Corrective Action Plan: We agree with the auditors’ findings and recommendations. Financial Aid Office staff that will deal with withdrawals and returns will complete the FSA Training Webinar Videos for R2T4. These include the R2T4 Essentials and R2T4 Modules webinars available online. We will implement a second review of calculations with an additional staff member added to the process. We will have the Financial Aid Counselor review withdrawals as they are received and complete the preliminary calculation. The Counselor will pass the preliminary calculation to the Director of Financial Aid for review prior to processing the returns. We will work with the Online Learning Office to report and retain academic activity for distance education students. Anticipated Completion Date: December 31, 2024

Categories

Student Financial Aid Material Weakness Reporting

Other Findings in this Audit

  • 516390 2024-003
    Material Weakness Repeat
  • 516391 2024-003
    Material Weakness Repeat
  • 516392 2024-004
    Significant Deficiency
  • 516393 2024-004
    Significant Deficiency
  • 516394 2024-004
    Significant Deficiency
  • 516395 2024-004
    Significant Deficiency
  • 516396 2024-004
    Significant Deficiency
  • 516397 2024-004
    Significant Deficiency
  • 516398 2024-005
    -
  • 1092831 2024-003
    Material Weakness Repeat
  • 1092832 2024-003
    Material Weakness Repeat
  • 1092833 2024-003
    Material Weakness Repeat
  • 1092834 2024-004
    Significant Deficiency
  • 1092835 2024-004
    Significant Deficiency
  • 1092836 2024-004
    Significant Deficiency
  • 1092837 2024-004
    Significant Deficiency
  • 1092838 2024-004
    Significant Deficiency
  • 1092839 2024-004
    Significant Deficiency
  • 1092840 2024-005
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.89M
84.063 Federal Pell Grant Program $3.94M
84.031 Higher Education Institutional Aid $529,824
84.042 Trio Student Support Services $260,479
84.033 Federal Work-Study Program $142,963
84.007 Federal Supplemental Educational Opportunity Grants $138,416
84.425 Covid-19 Education Stabilization Fund Heerf- Governor's Emergency Education Relief Fund $106,622
84.038 Federal Perkins Loan Program $80,899
47.076 Stem Education (formerly Education and Human Resources) $61,503
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $10,373
19.009 Academic Exchange Programs - Undergraduate Programs $4,400