Finding 539470 (2024-005)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-03-28
Audit: 350009
Organization: Urshan College (MO)

AI Summary

  • Core Issue: The University failed to properly evaluate students for Return of Title IV (R2T4) calculations, leading to incorrect assessments and potential financial discrepancies.
  • Impacted Requirements: Compliance with 34 CFR 668.21(a) and 2 CFR 200.303 regarding timely return of funds and internal controls.
  • Recommended Follow-Up: Review and update policies and procedures for R2T4 calculations to ensure accuracy and compliance.

Finding Text

2024-005 8540.10 Department Of Education Student Financial Aid 84.063, 84.268 "P063P218567-2024 P268K228567-2024" N/A N/A 7/1/23 - 6/30/24 Material Weakness Material Appears to be systemic. "34 CFR 668.21(a) states that the institution must return all title IV, HEA program funds that were credited to the student's account at the instituion or disbursed directly to the student for th payment period. The instituion must return those funds no later than 30 days after the date that the instituion becomes aware that the student will not or has not begun attendance. Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements." The University did not properly evaluate students in need of Return of Title IV (R2T4) calculations. 283.39 "During our testing of 6 R2T4 calculations, we noted that 4 students were incorrectly evaluated as a withdrawal exemption and no R2T4 calculation was performed. For these 4 students, all 4 should have had an R2T4 calculation, and 2 should have had returned funds. In addition, we observed 1 student for whom 100% of funds were returned despite the student completing a portion of the term. We also noted 1 student who completed the term with passing grades for whom an R2T4 calculation was completed, and funds were returned in error. Additionally, R2T4 calculations did not have documentation of review." The college did not have the appropriate resources and staffing in place to verify they were in compliance with all requirements. The University could return incorrect amounts based off of their calculations and incorrect calculations could effect student repayment amounts based off of amount earned. No We recommend that the University review policies and procedures related to R2T4 calculations to ensure calculations are performed accurately. Management agrees with this finding. See 0100.25

Corrective Action Plan

Special Tests and Provisions R2T4 – Assistance Listing No. 84.063, 84.268 Recommendation: We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid office will be crafting a new SOP to address R2T4 audit findings. The team will work more closely with the Registrar and Academic Deans when determining the withdrawal status of a student and make sure that the R2T4 documentation is accurately completed, a review of completed R2T4s will also be conducted. Name(s) of the contact person(s) responsible for corrective action: Levi Powell, Student Financial Aid Director Planned completion date for corrective action plan: 6/30/2025

Categories

Questioned Costs Student Financial Aid Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 539468 2024-004
    Significant Deficiency Repeat
  • 539469 2024-004
    Significant Deficiency Repeat
  • 539471 2024-005
    Material Weakness
  • 539472 2024-006
    Significant Deficiency Repeat
  • 539473 2024-006
    Significant Deficiency Repeat
  • 539474 2024-007
    Significant Deficiency Repeat
  • 539475 2024-007
    Significant Deficiency Repeat
  • 539476 2024-008
    Significant Deficiency
  • 539477 2024-008
    Significant Deficiency
  • 539478 2024-009
    Significant Deficiency
  • 539479 2024-009
    Significant Deficiency
  • 539480 2024-010
    Significant Deficiency
  • 539481 2024-010
    Significant Deficiency
  • 1115910 2024-004
    Significant Deficiency Repeat
  • 1115911 2024-004
    Significant Deficiency Repeat
  • 1115912 2024-005
    Material Weakness
  • 1115913 2024-005
    Material Weakness
  • 1115914 2024-006
    Significant Deficiency Repeat
  • 1115915 2024-006
    Significant Deficiency Repeat
  • 1115916 2024-007
    Significant Deficiency Repeat
  • 1115917 2024-007
    Significant Deficiency Repeat
  • 1115918 2024-008
    Significant Deficiency
  • 1115919 2024-008
    Significant Deficiency
  • 1115920 2024-009
    Significant Deficiency
  • 1115921 2024-009
    Significant Deficiency
  • 1115922 2024-010
    Significant Deficiency
  • 1115923 2024-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.87M
84.063 Federal Pell Grant Program $990,139