Finding 539367 (2024-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-03-28
Audit: 349900
Organization: Eastern University (PA)
Auditor: Capincrouse LLC

AI Summary

  • Core Issue: The University failed to return unearned Title IV funds accurately and on time when students withdrew or did not begin attendance.
  • Impacted Requirements: Non-compliance with 34 CFR 668.21 and 34 CFR 668.22, leading to questioned costs of $5,217.
  • Recommended Follow-Up: Implement zero credit reports at the end of each term for accurate R2T4 calculations and require proof of engagement for online students before aid disbursement.

Finding Text

Incorrect Return of Title IV (R2T4) Funds Calculations and Untimely Returns Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid accurately and timely. Title IV funds disbursed were not always returned when students failed to begin attendance. Criteria: 34 CFR 668.21 and 34 CFR 668.22 Questioned Costs: $5,217 Context: Out of 60 students tested, we noted 4 students who withdrew did not have a return completed accurately and timely. These 4 students in total had $1,510 of Pell and $2,388 of Federal Direct Loans under returned and included in questioned costs. 1 student of these 4 also had a Pell adjustment error for $925 that should have been returned prior to the R2T4 calculation. Out of 60 students tested, we also noted 1 online student that did not begin attendance and received a disbursement of $1,319 of Federal Direct Loans which should have been returned entirely and is included in questioned costs. The University has corrected some of these errors during the audit and during an ED program review. Cause: This was an oversight by the University. Effect: Return of Title IV funds calculations were not performed timely and a student who did not begin attendance was disbursed aid. Identification as repeat finding, if applicable: 2023-001. Recommendation: We recommend that the University continue to work on running zero credit reports at the end of each module or semester and that these reports provide all the necessary information for financial aid to complete R2T4’s accurately and timely. We also recommend that for online students, evidence of academic engagement be required prior to disbursing aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Incorrect Return of Title IV (R2T4) Funds Calculations and Untimely Returns Planned Corrective Action: When this was identified last year, the Director of Financial Aid Office spent the next year working with the Department of Education as they conducted two separate reviews. The first review was completed and we were notified that everything was good. The second review recently concluded via an exit interview where we were notified that a final report would be sent to us within the next two months. Additionally, the Director of Financial Aid has been working with the IT department, the Registrar’s Office, and our Academic Technology department to streamline the identification of students who need a R2T4 completed. This has been an ongoing process in the midst of the program reviews and getting clarification and guidance from the Department of Education, coupled with the FAFSA issues, continued to cause further delays with R2T4 calculations. Person Responsible for Corrective Action Plan: Andrea Ruth, Director of Financial Aid Anticipated Date of Completion: 3/22/2025

Categories

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking Reporting Significant Deficiency

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $39.16M
84.063 Federal Pell Grant Program $4.91M
11.028 Connecting Minority Communities Pilot Program $1.51M
84.184 School Safely National Activities $1.20M
84.031 Higher Education Institutional Aid - Developing Hispanic Serving Institutions $660,305
84.007 Federal Supplemental Educational Opportunity Grants $305,294
84.033 Federal Work-Study Program $242,690
84.038 Federal Perkins Loan Program $166,931
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $39,637