Finding 529665 (2024-002)

-
Requirement
NP
Questioned Costs
$1
Year
2024
Accepted
2025-03-24
Audit: 347564
Organization: Randall University (OK)

AI Summary

  • Core Issue: One student's Title IV funds were not returned on time, despite correct R2T4 calculation.
  • Impacted Requirements: Funds must be returned within 45 days of withdrawal determination, as per federal guidelines.
  • Recommended Follow-up: Return $1,547 in Pell Grant funds and enhance procedures to ensure timely returns in the future.

Finding Text

FINDING 2024-002– R2T4 Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program ALN and Program Expenditures: 84.063 ($487,504) Award Number: P063P233315 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: $1,574 Condition Found: The R2T4 was calculated correctly, but the Title IV funds were not returned timely for one of the twenty students in the compliance testing sample. Criteria: Per the Student Financial Aid Handbook Volume 5, Chapter 2, “a school must return unearned funds for which it is responsible as soon as possible but no later than 45 days after the date of determination of a student’s withdrawal.” Cause: The financial aid director did not realize the funds had not been returned. Possible Asserted Effect: $1,547 of Pell Grant funds have not been returned to the Department of Education. Repeat Finding: See Finding 2023-002 for a similar finding the prior year. Recommendation: $1,547 of Federal Pell Grant funds should be returned to the Department of Education. Procedures should be improved to ensure that funds are returned to the Department of Education timely after an R2T4 is completed. Management Response: Management agrees that the funds were not returned after the R2T4 was completed. The Interim Director of Financial Aid has submitted a request to the University’s third party servicer to return the funds.

Corrective Action Plan

FINDING 2024-002 – R2T4 Calculation Program Name: Federal Pell Grant Program ALN and Program Expenditures: 84.063 ($487,504) Award Number: P063P233315 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: $1,574 Condition Found: The R2T4 was calculated correctly, but the Title IV funds were not returned timely for one of the twenty students in the compliance testing sample. Corrective Action Plan: Management agrees that the funds were not returned after the R2T4 was completed. The Interim Director of Financial Aid has submitted a request to the University’s third-party servicer to return the funds. Anticipated Completion Date: The University anticipates the corrective action being completed by April 30, 2025. Contact Person: L. Evan Aldridge, Interim Financial Aid Administrator 405-912-9007

Categories

Questioned Costs Student Financial Aid

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $709,913
84.063 Federal Pell Grant Program $487,504
84.033 Federal Work-Study Program $37,364
84.007 Federal Supplemental Educational Opportunity Grants $13,650
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $7,528
84.038 Federal Perkins Loan Program_federal Capital Contributions $0