Finding Text
Finding 2023-001:
Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans
Criteria:
The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). The University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)).
Condition:
Our audit procedures identified the University did not follow its procedures to return funds to DOE timely. In our sample of twenty-one student withdrawals, four withdrawals (one from Summer 2023, three from Spring 2024) (sample of sixteen, seven withdrawals for the year ended May 31, 2023) did not have funds returned to DOE timely.
Cause:
Staffing shortfalls in the Student Financial Aid (SFA) Office resulted in the reallocation of job duties. Without proper cross training in the SFA Office, the University’s processes for returning funds to DOE were not followed.
Effect:
The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes.
Questioned Costs:
None
Auditors’ Recommendation:
The University should provide necessary ongoing cross training as it assesses staffing needs of the SFA Office to ensure compliance and proper procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes.
Views of Responsible Officials:
The University experienced staffing turnover in the financial aid department during the 2023- 2024 aid year, resulting in certain established processes to go unfollowed. In June 2024, the University hired a full-time outsourced staffing solution, which has added headcount and stabilized the department staffing. As of February 2025, the University has established clear roles and responsibilities so established processes are not missed going forward. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals are done monthly going forward.