Finding 524808 (2024-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-02-27
Audit: 344190
Organization: Corban University (OR)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The University miscalculated unearned Title IV funds for students who withdrew, leading to incorrect federal funding returns.
  • Impacted Requirements: This violates 34 CFR 668.22, resulting in questioned costs of $3,572.
  • Recommended Follow-Up: Assign a qualified financial aid staff member to regularly review R2T4 calculations for modular students to improve compliance and internal controls.

Finding Text

Inaccurate Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $3,572 Context: Out of 8 students tested, 2 students who withdrew during the audit period tested had incorrect R2T4 calculations. 1 traditional student had an incorrect Post-Withdrawal Disbursement (PWD) due to an incorrect last date of attendance (LDA) being used in the calculation resulting in the student being over-awarded $9 of Pell. 1 modular student did not have both modules included in the payment period in the R2T4 calculations resulting in $3,563 of Federal Direct Loans (FDL) that should have been returned but were not. These were not corrected during the audit. Cause: This was an oversight by the University due to the complexity of modular withdrawal rules. Additionally, there was transition in key roles in the financial aid office during the 2023-2024 award year. Effect: Incorrect amounts of federal funding were returned. Identification as repeat finding, if applicable: See 2023-001 Recommendation: We recommend that an individual in financial aid with the appropriate level of experience periodically review modular students’ R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Inaccurate Return of Title IV Funds (R2T4) Planned Corrective Action: The academic calendar has been updated between academic catalog and website ensuring better accuracy. Policies and procedures surrounding the date of withdrawal and what constitutes an academic break have also been corrected and understood across the Registrar and Financial Aid offices. Financial Aid professionals have also been added to internal meetings where decisions on programs, academic calendars, and other significant timing decisions are made to better enhance our ability to comply. Person Responsible for Corrective Action Plan: Jordan Lindsey, Vice President for Enrollment Management and Marketing Anticipated Date of Completion: 2/1/25

Categories

Questioned Costs Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.34M
84.063 Federal Pell Grant Program $1.29M
84.033 Federal Work-Study Program $68,141
84.007 Federal Supplemental Educational Opportunity Grants $51,909
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $28,290