Finding 523663 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-02-19

AI Summary

  • Core Issue: Title IV funds were not returned within the required 45 days after student withdrawals.
  • Impacted Requirements: Timely calculations for refunds were not made, leading to noncompliance with U.S. Department of Education regulations.
  • Recommended Follow-Up: Establish procedures for timely refund calculations and designate responsible individuals for oversight and review.

Finding Text

Criteria: When a return of Title IV funds is required, the U.S. Department of Education requires that Title IV funds be returned as soon as possible, but no later than 45 days of becoming aware that the student had withdrawn, deposits or transfers were made into the federal funds account, electronic transfers were initiated, or checks were issued. Condition: Two amounts required to be returned to Title IV were not returrned within the prescribed 45 days. Cause: Calculations of petential returns to Title IV were not made timely. Effect: Required returns of Title IV funds were not within 45 days as required by the U.S. Department of Education. Questioned Costs: The two instances of noncompliance totaled $2,987. These funds were returned, but after the required 45 days. Recommendation: The Siminary should make timely calculations to determine if a refund of Title IV funds is required when a student withdraws. The Seminary needs to establish procedures to notify the person(s) responsible for calculating if a refund determination needs to be made and another person to oversee the process, review the calculation and make sure the funds are returned timely.

Corrective Action Plan

Management concurs with the finding and the auditor's recommendation to make timely calculations to determine if a refund of Title IV funds is required when a student withdraws. The return of Title IV funds to the U.S. Department were made, but not within the required 45 days. The Seminary has reviewed our procedures to prevent future late returns of Title IV funds. The return of Title IV funds was resolved as June 30, 2024. The Seminary is continuing to review our processes for the return of Title IV funds. We have established procedures to notify the person(s) responsible for calculating if a reunds needs to be made and another person to oversee the process, review the calculation and make sure the funds are returned in a timely manner.

Categories

Questioned Costs Student Financial Aid

Other Findings in this Audit

  • 1100105 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.46M
84.033 Federal Work-Study Program $12,851