Finding Text
Programs Affected
U.S. Department of Education – Student Financial Assistance Cluster – Award Year July 1, 2023 – June 30, 2024:
Criteria
Per 2 CFR 200.303: “The non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.”
Condition
While testing return of Title IV funds (R2T4), a nonstatistical sample of 25 students was tested for proper return calculations. The University was unable to provide proof of a documented review for 2 of the 25 calculations selected for testing.
Cause
The University process was to perform a documented review of R2T4 calculations only when a student was determined not to have earned 100% of their aid, and thus the documented review was not completed for the 2 of 25 calculations sampled.
Questioned Costs
None.
Effect
Without proper review, an error in the R2T4 calculation could be missed, causing incorrect refunds and non-compliance with regulations.
Identification as a Repeat Finding, if Applicable
Not applicable.
Recommendation
BD recommends the process be revised to require review of the R2T4 calculations regardless of determined aid earned percentage.
Views of Responsible Officials and Corrective Action Plan
Management agrees with the finding. See attached Corrective Action Plan.