Finding 578653 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-11-20
Audit: 3792
Organization: Bethany Fellowship, Inc. (CO)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Timely return of Title IV funds was not consistently met, resulting in one late return and an incorrect calculation for a withdrawn student.
  • Impacted Requirements: Compliance with 34 CFR 668.22 regarding the timely return of unearned federal aid.
  • Recommended Follow-Up: Implement regular checks on withdrawals and calendar setups to ensure accurate and timely R2T4 calculations.

Finding Text

Incorrect and Untimely Return of Title IV (R2T4) Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew, Bethany did not always return unearned Title IV aid timely as an attendance taking school. Additionally, there was one incorrect calculation of returned funds for a student that withdrew during a term due to an incorrect calendar setup. Criteria: 34 CFR 668.22 Questioned Costs: $-0- Context: Out of 6 students, 1 student who withdrew during the audit period tested had funds returned 78 days late while the financial aid director was unavailable. The fall 2022 traditional calendar did not include the weekends as break days, resulting in one student with an overreturn of $183 of subsidized loans. Because of the error rate, this is classified as a significant deficiency. Cause: This was an oversight by Bethany in reviewing the calendar setups and cross training for while an individual was out of the office. Effect: Incorrect amounts of federal funding were returned. There was an over-return of subsidized loans of $183. Additionally one return was made late. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend Bethany run a listing of withdrawals after each semester or each module and compare the list of students who had R2T4’s completed to ensure completeness. We further recommend a 0-credit report be run at the end of each semester or module to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. We recommend an individual with appropriate return calculation knowledge review each calendar set up and recalculate the first few withdrawals manually to ensure the system is functioning as intended. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Student Financial Aid Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $750,832
84.063 Federal Pell Grant Program $627,419
84.033 Federal Work-Study Program $435,550
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $390,260
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $256,895
84.007 Federal Supplemental Educational Opportunity Grants $12,000