FAC Explorer

Finding 520842 (2024-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-30
Audit: 340662
Organization: Simpson University (CO)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Title IV funds were returned inaccurately and late for students who withdrew, affecting compliance with federal regulations.
  • Impacted Requirements: Non-compliance with 34 CFR 668.22, leading to questioned costs of $2,504 due to errors in R2T4 calculations.
  • Recommended Follow-Up: Have a knowledgeable individual review R2T4 setups and manually recalculate withdrawals to ensure accuracy, and verify returns against calculations post-processing.

Finding Text

Incorrect and Untimely Returns of Title IV Funds (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007 Federal Award Identification #: 2023-2024 Award Year Condition: Title IV funds were not always returned accurately or timely when students withdrew during a term. Criteria: 34 CFR 668.22 Questioned Costs: $2,504 Context: Out of 11 students, 5 students who withdrew during the audit period tested had a total of $29,006 Federal Direct Loans (FDL) and $1,110 of Pell returned late, ranging from 39 to 154 days late. 7 of 11 withdrawals tested had R2T4 calculation errors and/or incorrect returns of aid. 4 students had $8,861 of FDL and 1 had $1,849 of Pell over returned, while 3 students had $2,380 of FDL and $124 of Pell funds under returned. Cause: Staffing issues and turnover. Incorrect calendar set up leading to 4 miscalculations and 2 errors were caused by using the incorrect calendar dates. Incorrect inputs into the R2T4 calculation led to the other error. Effect: Incorrect amounts of federal funding were returned. Returned of Title IV funds were not performed timely. Identification as repeat finding, if applicable: n/a Recommendation: We recommend an individual with appropriate knowledge of R2T4 calculations review each system set up and recalculate the first few withdrawals manually to ensure the system is functioning as intended. We also recommend that returns be verified once they post on the student account to verify they match what is calculated on the R2T4 calculation. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Incorrect and Untimely Returns of Title IV Funds (R2T4) Calculations Planned Corrective Action: The University agrees with these findings. It was determined that these issues primarily resulted from a critical staff shortage in the Financial Aid Office during the audit period. This shortage significantly impacted our ability to complete R2T4 calculations accurately and withing the required timeframe. To address these findings, the institution will prioritize the recruitment and onboarding of additional qualified staff to alleviate workload challenges and support timely processing of R2T4s. Concurrently, we will provide comprehensive training to all financial aid staff, focusing on federal regulations, calculation methods, and deadlines. To reduce errors, we will establish a robust quality assurance process that includes a secondary review of all R2T4 calculations before finalization. Person Responsible for Corrective Action Plan: Shondra Dickson, Director of Financial Aid Anticipated Date of Completion: September 1, 2025

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Material Weakness Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.63M
84.063 Federal Pell Grant Program $1.93M
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $636,888
84.042 Trio Student Support Services $282,339
84.047 Trio Upward Bound $260,485
84.033 Federal Work-Study Program $114,916
84.007 Federal Supplemental Educational Opportunity Grants $107,040
84.038 Federal Perkins Loan Program $75,644
97.008 Non-Profit Security Program $14,826