Finding 566942 (2024-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-25
Audit: 359811
Organization: College of the Muscogee Nation (OK)
Auditor: Hogantaylor LLP

AI Summary

  • Core Issue: Title IV Assistance calculations were inaccurate and not completed on time for students who withdrew, leading to delays in fund returns.
  • Impacted Requirements: Compliance with Title 34 regulations for timely and accurate processing of Title IV funds is essential for student financial wellbeing.
  • Recommended Follow-up: Implement new procedures to ensure accurate completion of Title IV worksheets and timely processing of returns for withdrawing students.

Finding Text

Finding: Item 2024-002 – Special Tests: Title IV Assistance Earned Federal Program – Federal Pell Grant Federal ALN – 84.063 Federal Award Number – P063P188097 Federal Award Year – September 30, 2024 Federal Agency – U.S. Department of Education Pass-through Entity – Not Applicable Significant Deficiency Criteria: Calculation of the amount of Title IV Assistance earned is required by Title 34 in which the percentage of earned Title IV funds must be calculated by determining the percentage of the Title IV grant that has been earned by the student and applying that percentage to the total amount of Title IV grant that was or could have been disbursed to the student for the payment period or periods as of the withdrawal date. Institutions are responsible for accurately calculating this amount and processing the return timely, if any. Condition / context: Out of a sample of eight students who withdrew during the audit period, the Title IV worksheet was not completed timely for two students that required a return of funds. Additionally, the Title IV worksheet was not completed accurately for one student. There was a delay in return of Title IV funds for all three of these students that exceeded the maximum time allowed of 45 days after the date the institution determined that the student withdrew. The sample was not a statistically valid sample but was determined using Chapter 11 – Audit Sampling Considerations of Uniform Guidance Compliance Audits of the Audit and Accounting Guide for Government Auditing Standards and Single Audits. Cause: Procedures were not in place to verify that the Title IV worksheet was completed accurately and returns were processed timely. Repeat finding: Finding is a repeat of finding 2023-002 in the immediately prior audit. Effect: Inaccurate calculation of the Title IV funds to be returned to a student can impact the student's financial wellbeing, ability to make timely financial and strategic decisions, and ability to enroll in the Title IV program in future periods. Recommendation: We recommend that the Financial Aid Coordinator institute a procedure that would ensure that the Title IV worksheet is completed accurately and correctly to ensure that amounts earned by students who withdraw from the College are calculated correctly to ensure timely processing of returns, if any. View of responsible officials: Management's response is reported in "Management's Views and Corrective Action Plan" at the end of this report.

Corrective Action Plan

The College has identified that the dates of Return of Title IV Calculations and amounts (in one case) were out of compliance. The return calculations for all three students identified through this audit have been completed and corrected to reflect the correct return amounts, if appropriate. Student 1: After changing from an attendance-taking institution to a non-attendance taking institution, this student was identified during the audit as a student who may not have completed the term due to all F/NP grades. Calculation was completed and a return was made based on the midpoint date of the spring term. Student 2: After changing from an attendance-taking institution to a non-attendance taking institution, this student was identified during the audit as a student who may not have completed the term due to all F /NP grades. Calculation was completed and a return was made based on the midpoint date of the spring term. Student 3: Student officially withdrew but withdrawal was not processed until the end of the term. Since the withdrawal was not processed in a timely manner, the enrollment status (as noted in fmding 2024-001) and subsequent R2T4 calculation was delayed. Calculation was completed and a return was made based on the date indicated in the official withdrawal documents. Due to delayed calculations on these three students, CMN will continue to work with fmancial aid staff and the registrar's office to streamline communication on withdrawals and students who complete the term with all F/NP grades, as indicated in CMN policy. CMN has already worked with Anthology (student information system)'to provide electronic triggers to the fmancial aid office when a student status changes from active to drop/withdrawal. Additionally, Enrollment Management notifies all faculty by email at the beginning of the term and again prior to fmal grades being submitted that electronic notification must be sent by the faculty to financial aid in order to alert the fmancial aid office of the date oflast academic engagement for students who earn an For NP grade. For the current audit period, the Director of Enrollment Management and the Financial Aid Coordinator work together to review a final grade report for all students and identify those who need R2T4 calculations based on that review. Both the director and coordinator sign the working documents to indicate that it has been reviewed by both parties. We will continue with this process and will refme as necessary, but we anticipate that this will resolve the issue of calculations not having been performed on students with all F /NP grades at the end of the term.

Categories

Student Financial Aid Special Tests & Provisions Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 566941 2024-001
    Significant Deficiency
  • 566943 2024-003
    Significant Deficiency
  • 1143383 2024-001
    Significant Deficiency
  • 1143384 2024-002
    Significant Deficiency Repeat
  • 1143385 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.027 Assistance to Tribally Controlled Community Colleges and Universities $1.53M
84.031 Higher Education Institutional Aid $1.08M
10.766 Community Facilities Loans and Grants $508,910
84.063 Federal Pell Grant Program $456,815
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $355,653
84.425 Education Stabilization Fund $268,318
10.517 Tribal Colleges Extension Programs $254,938
10.516 Rural Health and Safety Education Competitive Grants Program $157,597
10.221 Tribal Colleges Education Equity Grants $109,589
10.527 New Beginning for Tribal Students $82,373
93.859 Biomedical Research and Research Training $37,505
47.076 Stem Education (formerly Education and Human Resources) $26,955
10.227 1994 Institutions Research Grants $18,309
12.598 Centers for Academic Excellence $13,134
84.007 Federal Supplemental Educational Opportunity Grants $7,434
45.311 Native American and Native Hawaiian Library Services $4,510