Finding 547476 (2024-001)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-03-31
Audit: 351665
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: One refund was unpaid and another was paid late, violating the 45-day requirement for returning Title IV funds.
  • Impacted Requirements: Compliance with federal regulations (34 CFR 668.22, 685.306) regarding timely refunds for students who withdraw.
  • Recommended Follow-Up: Refund $4,704 to the Department of Education and improve controls in the financial aid department to prevent future issues.

Finding Text

FINDING 2024-001 - UNPAID AND UNTIMELY PAID REFUNDS FEDERAL AGENCY: US DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN: 84.268 FEDERAL AWARD YEAR: 2023-2024 COMPLIANCE REQUIREMENT: SPECIAL TESTS AND PROVISIONS (N.) - RETURN OF TITLE IV FUNDS CRITERIA: REFUNDS, IF NECESSARY, MUST BE CALCULATED AND MADE WITHIN 45 CALENDAR DAYS OF THE DATE THE STUDENT WITHDRAWS (34 CFR 668.22, 685.306). CONDITION: WE TESTED THIRTEEN DROP STUDENTS AND NOTED ONE UNPAID AND ONE UNTIMELY PAID REFUND. WE CONSIDER THIS FINDING TO BE INSTANCES OF NON-COMPLIANCE. CAUSE: THE CONDITION WAS CAUSED BY AN OVERSIGHT IN THE FINANCIAL AID DEPARTMENT. EFFECT OR POTENTIAL EFFECT: THE RESULT IS THE INSTITUTION IS RETAINING MONIES WHICH NEED TO BE RETURNED TO THE DEPARTMENT OF EDUCATION. QUESTIONED COSTS: $5,053 RECOMMENDATION: WE RECOMMEND THE INSTITUTION REFUND THE $4,704 FEDERAL DIRECT LOAN FUNDS TO THE DEPARTMENT OF EDUCATION AND INCREASE CONTROLS OVER PAYING REFUNDS. NO ACTION REQUIRED REGARDING PELL FUNDS AS THIS WAS A LATE REFUND. VIEWS OF RESPONSIBLE OFFICIALS: THE INSTITUTION AGREES WITH THE SINGLE AUDIT FINDING AND A RESPONSE IS INCLUDED IN THE CORRECTIVE ACTION PLAN.

Corrective Action Plan

Finding 2024-001: UNPAID AND UNTIMELY PAID REFUND- We tested thirteen drop students and noted one unpaid and one untimely paid refund as a result of Return of Title IV funds calculations. Comments on Finding and Recommendation(s): The institution agrees with this finding. It was recommended that the school complete the R2T4 and return the $4,704 in Sub, Unsub, and PLUS funds to the Department of Education. The Pell return, while untimely, was completed prior, therefore no additional action required. Actions Taken or Planned: The $4,704 in Sub, Unsub, and PLUS was returned to the Department of Education on 12/16/24. Withdrawals are processed by the Dean of Academic Success and forwarded to the Registrar and Financial Aid Office for review and action. The Financial Aid Office and Business Office will begin to track withdrawals and follow up with Academic Success and the Registrar when final forms are not shared in a timely manner so that funds can be returned as needed.

Categories

Questioned Costs Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.31M
84.063 Federal Pell Grant Program $1.49M
84.033 Federal Work-Study Program $84,387
47.076 Education and Human Resources $74,270
84.007 Federal Supplemental Educational Opportunity Grants $60,883