Finding 525143 (2024-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-02-28

Audit: 344388

Organization: Southern California University of Health Sciences (CA)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: The University failed to return Title IV funds within the required 45 days after determining a student withdrew.
Impacted Requirements: Compliance with 34 CFR 668.22(j)(1) regarding timely return of federal funds.
Recommended Follow-Up: Review and improve procedures to ensure timely returns of Title IV funds in the future.

Finding Text

Criteria or Specific Requirement: In accordance with 34 CFR 668.22(j)(1), an institution must return the amount of Title IV funds for which it is responsible to return as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew. Condition/Context: During our testing of 8 students, which is a statistically valid sample, we noted 3 instances where funds were not returned to the Department of Education within 45 days of the University determining the withdrawal. Questioned Costs: None. Cause: The University's internal controls did not identify the errors for compliance with the criteria mentioned above. Effect: Federal funds were not returned timely to the Department of Education as required by the regulations. Repeat Finding: No. Recommendation: We recommend the University review its procedures to ensure that Title IV funds required to be returned are done so within 45 days after the date of the institution's determination that the student withdrew. Views of Responsible Officials: Please refer to the attached corrective action plan.

Corrective Action Plan

Return of Title IV (R2T4) Returning of Funds Student Financial Assistance Cluster – Assistance Listing No. 84.063, 84.033, 84.268 Recommendation: We recommend the University review its procedures to ensure that title IV funds required to be returned are done so within 45 days after the date of the institution's determination that the student withdrew. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We did a thorough review of the findings, including in depth discussions with our audit firm to understand the details of the findings and to ascertain their root cause. We have provided training for staff on appropriate processing of Return of Title IV Funds. Name(s) of the contact person(s) responsible for corrective action: Eulanie Morales, Director of Financial Aid. Planned completion date for corrective action plan: January 31, 2025.

Other Findings in this Audit

525139 2024-001

Significant Deficiency Repeat
525140 2024-001

Significant Deficiency Repeat
525141 2024-001

Significant Deficiency Repeat
525142 2024-001

Significant Deficiency Repeat
525144 2024-002

Significant Deficiency
525145 2024-002

Significant Deficiency
525146 2024-002

Significant Deficiency
1101581 2024-001

Significant Deficiency Repeat
1101582 2024-001

Significant Deficiency Repeat
1101583 2024-001

Significant Deficiency Repeat
1101584 2024-001

Significant Deficiency Repeat
1101585 2024-002

Significant Deficiency
1101586 2024-002

Significant Deficiency
1101587 2024-002

Significant Deficiency
1101588 2024-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.268	Federal Direct Loan Program	$57.62M
84.063	Federal Pell Grant Program	$462,087
84.033	Federal Work Study Program	$333,547
93.213	Spinal Manipulative Therapy Vs. Prescription Drug Therapy for Care of Aged Medicare Beneficiaries with Neck Pain	$229,689
16.710	Public Safety Partnership and Community Policing Grants	$105,624
93.213	Chiropractic Care for Veterans: A Pragmatic Randomized Trial Addressing Dose Effects for Clbp	$23,446
93.213	Rand Reach Center	$23,196
93.279	Integrated Care for Chronic Pain and Opioid Use Disorder	$14,884
84.007	Federal Supplemental Educational Opportunity Grant	$6,551