FAC Explorer

Finding 537613 (2024-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-27
Audit: 348884
Organization: Missouri Valley College (MO)
Auditor: Williams Keepers LLC

AI Summary

  • Core Issue: Incorrect calculations of student completion percentages and untimely reporting of withdrawals and Title IV fund returns.
  • Impacted Requirements: Violations of 34 CFR 668.22 regarding the treatment of Title IV funds and timely reporting of student status changes.
  • Recommended Follow-Up: Ensure adherence to established policies and procedures; management will submit a Corrective Action Plan to address these deficiencies.

Finding Text

U.S. Department of Education Finding 2024-002 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found four (4) instances where the Title IV funds were not returned timely. We also found three (3) instances where changes in student status due to withdrawal were not reported timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. 39 Also in accordance with 34 CFR, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found four (4) instances where the Title IV funds were not returned timely. We also found three (3) instances where changes in student status was not reported timely. Cause of Condition: The College implemented a new system in the current year which resulted in errors in the number of days in the payment period. The College does not consistently follow its policies and procedures related to withdrawals. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.

Corrective Action Plan

2024-002 Plan: As of 03/20/2025 this is complete. Objective: Ensure that the Return to Title IV calendar is set up correctly. In order to address the original setup of the Return to Title IV calendar that was done with Colleague specialists in the original setup, we now confirm that the calendar is now correctly established and that the previous issues have been resolved. Initially, the calendar was impacted by the inclusion of four federal holidays, which led to inaccuracies. To rectify this, we conducted thorough research and collaborated closely with Ellucian support to devise a robust annual setup plan that will prevent the recurrence of such errors in the future. Moving forward, we have instituted a proactive approach in which we will meticulously review and manually count the calendar each year prior to the start of the academic year. This ensures that all holidays and relevant dates are accurately reflected in the calendar to align with federal guidelines, effectively mitigating any potential disruptions. Through these measures, we aim to maintain compliance and enhance the overall integrity of our Return to Title IV processes. Objective: Ensure that the Return to Title IV funds are returned within the 45 day timeline. lnorder to address the timely return of funds within the 45-day federal timeframe, we acknowledge that this was our first year utilizing a new system, which presented a learning curve for our team. To address this challenge, we partnered with the Ellucian team to implement an automated notification system that triggers alerts at the 30-day mark whenever a Return to Title IV (R2T 4) calculation has been performed but the associated funds have not yet been returned or transmitted for return. This proactive measure is designed to enhance our operational efficiency and ensure compliance with federal regulations. By enabling timely notifications, we can better maintain the integrity of federal policies and the R2T 4 process itself, allowing our staff to take appropriate action and ensure that funds are returned promptly. Furthermore, we will conduct periodic reviews of this system and its effectiveness to identify any additional improvements, fostering ongoing compliance and strengthening our financial processes in future academic years.

Categories

Student Financial Aid Significant Deficiency

Other Findings in this Audit

  • 537614 2024-003
    Significant Deficiency
  • 537615 2024-002
    Significant Deficiency Repeat
  • 537616 2024-003
    Significant Deficiency
  • 537617 2024-002
    Significant Deficiency Repeat
  • 537618 2024-003
    Significant Deficiency
  • 537619 2024-002
    Significant Deficiency Repeat
  • 537620 2024-003
    Significant Deficiency
  • 537621 2024-002
    Significant Deficiency Repeat
  • 537622 2024-003
    Significant Deficiency
  • 1114055 2024-002
    Significant Deficiency Repeat
  • 1114056 2024-003
    Significant Deficiency
  • 1114057 2024-002
    Significant Deficiency Repeat
  • 1114058 2024-003
    Significant Deficiency
  • 1114059 2024-002
    Significant Deficiency Repeat
  • 1114060 2024-003
    Significant Deficiency
  • 1114061 2024-002
    Significant Deficiency Repeat
  • 1114062 2024-003
    Significant Deficiency
  • 1114063 2024-002
    Significant Deficiency Repeat
  • 1114064 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.08M
84.063 Federal Pell Grant Program $2.84M
93.493 Community Services Block Grant $1.38M
84.116 Fund for the Improvement of Postsecondary Education $470,864
14.251 Economic Development Initiative $388,927
84.007 Federal Supplemental Educational Opportunity Grants $119,999
84.033 Federal Work-Study Program $83,737
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $2,000