Finding 576791 (2023-003)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2023-10-18
Audit: 719
Organization: Southern Virginia University (VA)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University improperly calculated the return of Title IV funds for a student who withdrew, leading to potential inaccuracies in aid distribution.
  • Impacted Requirements: Compliance with the Return of Title IV Funds regulations, specifically in determining the amount of aid earned based on attendance.
  • Recommended Follow-Up: Improve procedures for preparing and reviewing R2T4 calculations to ensure accurate compliance and consider ongoing training for financial aid staff.

Finding Text

Federal Program Information: Student Financial Assistance Cluster: Federal Supplemental Education Opportunity Grants (ALN 84.007), Federal Work- Study Program (ALN 84.033), Federal Pell Grant Program (ALN 84.063), Federal Direct Loan Program (ALN 84.268) Criteria or Specific Requirement: Special Tests and Provisions – Return of Title IV Funds - When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Condition: The University did not prepare a certain student’s return calculation properly. Cause: Administrative oversight. Effect or Potential Effect: Over or underpayment of Title IV funds. Questioned Costs: Below reporting threshold. Context: For 1 of 4 students tested, the University did not accurately determine both the calendar days completed and the period of enrollment when calculating the percentage of Title IV aid earned. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend that the University enhance its procedures over the preparation and review of R2T4 calculations to ensure compliance with the return of Title IV funds requirements. Views of Responsible Officials: An incorrect date was used to process one student’s Return ofTitle IV (R2T4) calculation. Training has been provided to financial aid staff in properly performing the R2T4 calculations and a report is being run several times a month to identify possible data entry errors in R2T4 calculations.

Categories

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

Other Findings in this Audit

  • 343 2023-001
    - Repeat
  • 344 2023-002
    Significant Deficiency Repeat
  • 345 2023-002
    Significant Deficiency Repeat
  • 346 2023-003
    -
  • 347 2023-003
    -
  • 348 2023-003
    -
  • 349 2023-003
    -
  • 576785 2023-001
    - Repeat
  • 576786 2023-002
    Significant Deficiency Repeat
  • 576787 2023-002
    Significant Deficiency Repeat
  • 576788 2023-003
    -
  • 576789 2023-003
    -
  • 576790 2023-003
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.60M
84.063 Federal Pell Grant Program $2.59M
84.007 Federal Supplemental Educational Opportunity Grants $69,716
84.033 Federal Work-Study Program $40,048
84.425 Education Stabilization Fund $23,482