Finding 524775 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-02-27
Audit: 344161
Organization: Mercyhurst University (PA)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: One student's Title IV aid return was calculated incorrectly, leading to noncompliance with federal regulations.
  • Impacted Requirements: The University failed to meet the procedures outlined in 34 CFR 668.22 regarding timely and accurate return of Title IV funds.
  • Recommended Follow-up: Implement a quality assurance process with controls to ensure compliance and prevent future errors.

Finding Text

Program Title: Student Financial Assistance Cluster Assistance Listing Numbers: 84.063 and 84.007 Federal Award Number: None Federal Agencies: United States Department of Education Criteria: According to 34 CFR 668.22, the University is required to implement procedures to appropriately administer funding under the Student Financial Assistance Cluster and to return Title IV funds in the appropriate time required by regulations. Condition: During the course of our testing, we identified one student from a sample of ten whose return of Title IV aid was not calculated correctly and, therefore, the amount of aid returned was not correct. Cause: Administrative oversight by personnel in refund process. Effect: The University has not complied with certain requirements of FSA Handbook and Federal Code of Regulations to return aid properly to the students. Questioned Costs: $2,610 Context: During testing of return of Title IV funds, we identified that the calculation for the return of funds was not correct for one student. Repeat Finding: No Recommendation: The University should implement and document an overall quality assurance process including adequate controls to prevent overall noncompliance. View of responsible individuals: Management agrees with the finding.

Corrective Action Plan

Finding: During the course of testing return of Title IV funds, the calculation was not accurate for one student from the sample and therefore the proper amount of funds to be returned in the appropriate time required was not accurate. View of responsible officials and corrective action: Management understands the need for accurate calculation of funds to be returned. An additional step has been added to the process for the return of Title IV funds process. All calculations are now reviewed by a manager before release to ensure funds are calculated correctly and returned in the appropriate timeframe.

Categories

Questioned Costs Student Financial Aid Internal Control / Segregation of Duties

Other Findings in this Audit

  • 524776 2024-002
    Significant Deficiency
  • 524777 2024-001
    Significant Deficiency
  • 524778 2024-003
    Significant Deficiency
  • 1101217 2024-002
    Significant Deficiency
  • 1101218 2024-002
    Significant Deficiency
  • 1101219 2024-001
    Significant Deficiency
  • 1101220 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $19.97M
95.001 High Intensity Drug Trafficking Areas Program $14.22M
84.063 Federal Pell Grant Program $4.03M
84.287 Twenty-First Century Community Learning Centers $868,361
84.038 Federal Perkins Loan Program_federal Capital Contributions $600,191
84.033 Federal Work-Study Program $290,611
84.007 Federal Supplemental Educational Opportunity Grants $274,034
14.267 Continuum of Care Program $50,089
47.076 Stem Education (formerly Education and Human Resources) $33,496
16.817 Byrne Criminal Justice Innovation Program $21,260
17.245 Trade Adjustment Assistance $20,002
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $5,435
12.620 Troops to Teachers Grant Program $1,072
23.002 Appalachian Area Development $662