Finding 517929 (2024-001)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-01-07

AI Summary

  • Core Issue: Three out of 17 students had Title IV funds that were not returned on time and were incorrectly calculated.
  • Impacted Requirements: The organization failed to meet the 45-day return requirement and did not accurately calculate unearned aid.
  • Recommended Follow-Up: Review and improve processes to ensure timely returns and accurate calculations to avoid questioned costs of $954.05.

Finding Text

Condition: Title IV funds for three out of 17 students examined were not timely returned to the student financial assistance program. The Title IV fund calculations for all three students examined were not correctly calculated. Effect: The Organization failed to return funds within the 45 days regulatory requirement, and did not perform the correct calculation which permitted the improper retention of federal funds. Cause: Due to oversight, unearned aid was not accurate or timely returned. Questioned costs: $954.05 Context: Of 169 student financial aid recipients, 17 cases involved Title IV funds returned. Three of the 17 cases examined were incorrect and not timely.

Corrective Action Plan

Planned Corrective Action: The Organization has implemented several measures to enhance its student attendance tracking and withdrawal processes to ensure compliance with federal regulations as of April 2024. Key corrective actions include: 1. Student Attendance Warning (SAW) Forms: Instructors will issue a SAW form to any student accumulating four unexcused absences. This form serves as notification that the student may be withdrawn from the class after eight unexcused absences. Signed SAW forms will be submitted to the Registrar to improve documentation and tracking. 2. Bi-Weekly Attendance Review: The Registrar and Financial Aid Counselor will meet bi-weekly to review attendance records and ensure that proper documentation (including SAW forms) is on file for all students with unexcused absences. Instructors will be promptly notified to address any missing documentation. 3. Withdrawal Process and R2T4 Completion: Withdrawn students will receive timely email notifications, and R2T4 forms will be completed on the same day of the withdrawal notification. These forms will be reviewed by the third-party processor, FAME, to ensure accuracy. Funds will be returned via AFA within three business days of the R2T4 review. 4. Monitoring and Compliance: Regular audits will be performed to ensure adherence to this corrective action plan. Ongoing training will be provided to all responsible parties, including Student Services, Admissions, Instructors, the Registrar, and Financial Aid staff, to maintain compliance with attendance tracking and withdrawal processes. Anticipation Date of Completion: Corrective action steps are currently in place, and monitoring is ongoing. Bi-weekly attendance reviews and audits are scheduled moving forward. R2T4 processing improvements are effective immediately.

Categories

Questioned Costs Student Financial Aid Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $749,553
11.307 Economic Adjustment Assistance $189,264
17.258 Wia Adult Program $90,221