Finding 580510 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-13
Audit: 6383
Organization: Abilene Christian University (TX)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The University miscalculated the days in the semester, leading to incorrect refunds of Title IV Funds.
  • Impacted Requirements: Compliance with federal regulations for the timely and accurate return of Title IV Funds (34 CFR 668.173(b), 668.22).
  • Recommended Follow-Up: Review and enhance controls to ensure accurate calculations, with an additional review by the Director of Student Financial Services before each academic year.

Finding Text

Federal Pell Grant Program, Assistance Listing Number 84.063 Federal Direct Student Loans, Assistance Listing Number 84.268 Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007 Federal Work Study Program, Assistance Listing Number 84.033 Teacher Education Assistance for College and Higher Education Grants, Assistance Listing Number 84.379 U.S. Department of Education Program Year 2022-2023 Criteria or specific requirement – Special Tests and Provisions – Return of Title IV Funds (34 CFR 668.173(b); 34 CFR 668.22(e); 34 CFR 668.22(g) and 34 CFR 668.22(i). Federal Regulations state that the return of Title IV Funds must be made in the proper amount and in a timely manner as well as apply the return of Title IV Funds to Federal programs as required. Condition – The University’s processes did not ensure the days in the semester were consistently calculated correctly to calculate the return of Title IV funds correctly. Questioned costs – $1,106 (Assistance Listing Number 84.063 - $16; Assistance Listing Number 84.268 - $1,090) Context – Out of the population of 266 students that withdrew during the year, 25 students were tested. During testing, nine instances were noted in which the total days in the semester were not calculated correctly which resulted in the calculation of an incorrect refund amount. The sample was not, and was not intended to be, statistically valid. Effect – Title IV Funds were under returned to the U.S. Department of Education during the year. Cause – Lack of oversight by management and of secondary review of calculations in a sufficient manner to resolve calculation errors. Identification as repeat finding, if applicable – N/A Recommendation – Controls and procedures should be reviewed to ensure calculation of Return of Title IV is completed accurately and properly reflects the student’s semester data. Views of responsible officials and planned corrective actions – Management acknowledges and understands the findings of the Return of Title IV fund calculations related to the calendar setup. The calendar dates have been reviewed and corrected and all funds related to the recalculation have been returned to the Department of Education. Going forward, there will be an additional review of the calendar completed by the Director of Student Financial Services prior to the start of the academic year.

Categories

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

Other Findings in this Audit

  • 4067 2023-002
    Significant Deficiency
  • 4068 2023-002
    Significant Deficiency
  • 4069 2023-001
    - Repeat
  • 4070 2023-002
    Significant Deficiency
  • 4071 2023-001
    - Repeat
  • 4072 2023-002
    Significant Deficiency
  • 4073 2023-002
    Significant Deficiency
  • 580509 2023-002
    Significant Deficiency
  • 580511 2023-001
    - Repeat
  • 580512 2023-002
    Significant Deficiency
  • 580513 2023-001
    - Repeat
  • 580514 2023-002
    Significant Deficiency
  • 580515 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $45.10M
84.063 Federal Pell Grant Program $7.04M
84.425 Education Stabilization Fund $1.42M
84.038 Federal Perkins Loan Program $844,845
84.033 Federal Work-Study Program $541,576
81.049 Office of Science Financial Assistance Program $417,317
84.047 Trio_upward Bound $416,619
81.121 Nuclear Energy Research, Development and Demonstration $409,491
84.007 Federal Supplemental Educational Opportunity Grants $408,240
84.044 Trio_talent Search $281,536
84.217 Trio_mcnair Post-Baccalaureate Achievement $219,774
84.042 Trio_student Support Services $200,172
45.161 Promotion of the Humanities_research $95,246
45.169 Promotion of the Humanities_office of Digital Humanities $54,199
43.001 Science $15,151
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $7,544
45.310 Grants to States $631