Finding 580663 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-13
Audit: 6549
Organization: Centenary College of Louisiana (LA)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The College's internal controls failed to ensure accurate and timely calculations for returning Title IV funds, leading to excess funds being returned to the Department of Education.
  • Impacted Requirements: Compliance with 34 CFR 668.22(a)(1) through (a)(5) regarding proper calculation of withdrawal dates and semester information.
  • Recommended Follow-Up: Update controls to ensure accurate identification of withdrawal dates and total days in the semester, transferring responsibility for date entry to the Registrar for better oversight.

Finding Text

Criteria or specific requirement – Special Tests and Provisions – Return of Title IV Funds (34 CFR 668.22(a)(1) through (a)(5) Condition – The College’s internal controls did not ensure the calculation of amounts to be returned to the U.S. Department of Education were correct and were performed timely. Questioned costs - $0 Context – Out of the population of 21 students who withdrew during the year and were awarded federal aid, 3 were selected for testing. Our sampling method was not, and was not intended to be, statistically valid. Total days in the semester for one of the withdrawals tested was calculated incorrectly and the withdrawal date that was used for one student was incorrect. Effect – More Title IV funds were returned to the U.S. Department of Education than required. Cause – The College’s internal controls did not ensure proper identification of withdrawal dates for unofficial withdrawals, nor did they ensure proper inputting of semester information into the calculation of returns of Title IV funds based on total days in the semester and total days attended. Identification of repeat finding, if applicable – N/A Recommendation –The College should update their controls to ensure that the total days in the semester are calculated correctly based on proper identification of withdrawal dates for unofficial withdrawals and total days attended by students are calculated correctly. Views of responsible officials and planned corrective actions – This finding is in reference to an R2T4 miscalculation for a graduate student enrolled in our MBA Program for the 2022-23 academic year. BACKGROUND: The Financial Aid Director has historically been the person to input semester/session beginning and ending dates into our CRM system (Banner ERP). The reason for this is because the financial aid office needs these exact dates in the system at least six months before any other department needs them. EXPLANATION: The MBA Program consists of five, 10-week sessions in an academic year. Since the inception of this program, the beginning and end dates of these sessions have been the same (within a few days). In particular, the “Winter I” session dates have historically started around the middle of October and ended the first week of January. It seems that the MBA Program Director decided to change the end date of this particular session from the first week of January to the third week of December for the 2022-23 academic year. The Financial Aid Director did not receive a communication of this change. It was included in the 2022-23 MBA Catalog. Entering the incorrect ending date for this session was the error of the Financial Aid Director. PLANNED CORRECTIVE ACTION: The Financial Aid Director will no longer enter the dates of semesters/sessions in the Banner ERP system. The Registrar will assume responsibility for this task and work in conjunction with directors of Financial Aid and the MBA program to ensure term dates are established when needed and accurately maintained.

Categories

Student Financial Aid Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 4220 2023-001
    Significant Deficiency
  • 4221 2023-001
    Significant Deficiency
  • 4222 2023-001
    Significant Deficiency
  • 4223 2023-001
    Significant Deficiency
  • 4224 2023-002
    Significant Deficiency
  • 4225 2023-002
    Significant Deficiency
  • 4226 2023-002
    Significant Deficiency
  • 4227 2023-002
    Significant Deficiency
  • 580662 2023-001
    Significant Deficiency
  • 580664 2023-001
    Significant Deficiency
  • 580665 2023-001
    Significant Deficiency
  • 580666 2023-002
    Significant Deficiency
  • 580667 2023-002
    Significant Deficiency
  • 580668 2023-002
    Significant Deficiency
  • 580669 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.71M
84.063 Federal Pell Grant Program $1.02M
84.038 Federal Perkins Loan Program $346,506
84.033 Federal Work-Study Program $142,182
84.007 Federal Supplemental Educational Opportunity Grants $59,576
47.074 Biological Sciences $33,124