Finding 525613 (2024-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-04
Audit: 344711
Organization: Bluefield University (VA)
Auditor: Brown Edwards

AI Summary

  • Core Issue: The University did not return Title IV funds within the required 45 days after students withdrew.
  • Impacted Requirements: Compliance with 34 CFR Section 668.173(b) regarding timely return of funds.
  • Recommended Follow-Up: Implement procedures to ensure timely R2T4 calculations after the withdrawal date.

Finding Text

U.S. Department of Education, Student Financial Aid Cluster – Assistance Listing # 84.033, 84.063, 84.007, 84.268 – Return of Title IV Funds (Significant Deficiency). Condition: The University failed to return Title VI funds to the Department of Education within 45 days of student’s date of determination. Criteria: Return of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew in accordance with 34 CFR Section 668.173(b). Cause: Controls are not functioning properly. Effect: Funds were not timely returned to students or federal agencies as required. Context: From a population of 129 students that withdrew officially or unofficially during a term, we tested 12 students and noted that the R2T4 calculations were required for nine students. Of the nine students, R2T4 calculations were prepared untimely for six students, resulting in a late return of Title IV funds. Repeat Finding from Prior Year: Not a repeat finding. Recommendation: We recommend procedures are put in place to ensure R2T4 calculations are performed timely following the University’s date of determination.

Corrective Action Plan

U.S. Department of Education, Student Financial Aid Cluster – Assistance Listing # 84.033, 84.063, 84.007, 84.268 – Return of Title IV Funds (Significant Deficiency) Condition: The University failed to return Title VI funds to the Department of Education within 45 days of student’s date of determination. Criteria: Return of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew in accordance with 34 CFR Section 668.173(b). Cause: Controls are not functioning properly. Effect: Funds were not timely returned to students or federal agencies as required. Context: From a population of 129 students that withdrew officially or unofficially during a term, we tested 12 students and noted that the R2T4 calculations were required for nine students. Of the nine students, R2T4 calculations were prepared untimely for six students, resulting in a late return of Title IV funds. Repeat Finding from Prior Year: Not a repeat finding. Recommendation: We recommend procedures are put in place to ensure R2T4 calculations are performed timely following the University’s date of determination. Corrective Actions: In February 2025, Bluefield University leadership will work with the combined staff of the University’s Bluefield Central one-stop administrative office to develop and document a policy to ensure that communication from the registrar’s office regarding a student’s official or unofficial withdrawal occurs within 15 days of the student’s withdrawal. The policy also will stipulate that the financial aid staff of Bluefield Central will complete R2T4 calculations within 30 days of the student’s withdrawal, and the University’s business office will return Title IV funds to the Department of Education within 40 days of a student’s withdrawal.

Categories

Reporting Student Financial Aid Significant Deficiency

Other Findings in this Audit

  • 525612 2024-003
    Significant Deficiency
  • 525614 2024-005
    Significant Deficiency
  • 1102054 2024-003
    Significant Deficiency
  • 1102055 2024-004
    Significant Deficiency
  • 1102056 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.13M
84.063 Federal Pell Grant Program $2.10M
84.033 Federal Work-Study Program $92,011
84.007 Federal Supplemental Educational Opportunity Grants $89,987