Finding Text
Finding 2023-001 - U.S. Department of Education (USDE), Title IV Student Financial Aid Program:
Information on the federal program - Federal Direct Student Loans, CFDA No. 84.268, June 30, 2023; Federal Pell Grant Program, CFDA No. 84.063, June 30, 2023; Federal Supplemental Educational Opportunity Grant, CFDA No. 84.007, June 30, 2023; Federal Work-Study Program, CFDA No. 84.033, June 30, 2023.
Criteria - Federal regulations governing the Title IV programs.
Condition - Instances of noncompliance were noted, as more fully described in the context below.
Questioned Costs - $0
Context- We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs:
1. Two (2) out of 16 students tested did not have timely or accurate enrollment reporting to the National Student Loan Data System (NSLDS).
2. One (1) out of 16 students tested did not have a post withdrawal disbursement within the allotted days of the school's withdrawal date determination.
3. One (1) out of 16 students tested did not have Title IV funds returned within the allotted days of the school's withdrawal date determination.
4. One (1) out of 16 students received Title IV funding and was not charged for courses taken. The questioned cost is $124. The funds were subsequently returned to the USDE.
5. One (1) out of 16 students received a Pell grant greater than the amount for which the student was eligible. The questioned cost is $862. The funds were subsequently returned to the USDE. 6. Five (5) out of 16 students were selected for refund canceled check testing. There was no documentation provided to test signatures for two (2) of the students selected. All requested documents were subsequently provided.
7. One (1) out of 16 students tested was eligible for a Federal Direct Subsidized loan and was not awarded.
8. One (1) out of 16 students tested had an award letter that stated subsequent Title IV disbursements were available to the student and the subsequent disbursements were not awarded.
Cause - Oversight by responsible employees of properly monitoring required elements.
Effect - The University's participation in the Title IV programs could be subject to USDE sanctions as applicable.
Repeat Finding - Yes.
Auditor's Recommendation - The University should implement corrective actions to ensure that the above findings are resolved and do not recur in future periods.
Views of Responsible Officials -
1. NSLDS reporting is actively reconciled monthly with our third-party financial aid servicer and, as of November 16, 2023, the University confirmed 97.34% reported. The University will continue to actively monitor this reporting to ensure accuracy and timeliness.
2. Student Information System integration with third-party financial aid servicer's system will allow the University to improve timing of drop notifications to ensure the third party financial aid servicer is notified timely. The University will continue to monitor and review the process of withdrawal disbursement more thoroughly with the third party financial aid processor to ensure that they are processed timely.
3. The University will monitor and review the process of returning Title IV funds to ensure that returns are processed timely. 4. The University has implemented a process that cross-checks enrollment with financial aid funding to identify and address situations in which students are inappropriately awarded Title IV funding.
5. The University is working with its third-party financial aid servicer to ensure Pell grants are awarded appropriately and within the amounts eligible. The University will ensure timely enrollment changes are sent to third-party financial aid servicer for any adjustments to aid eligibility.
6. The University has robust controls related to student refunds, and will continue to enforce these controls and retain the necessary documentation.
7. The University is working with its third-party financial aid servicer to ensure Federal Direct Subsidized Loans are awarded in all cases where appropriate. This is a unique situation where the FA software failed to recognize NSLDS information. The third-party financial aid servicer will monitor students closer until the system issue is resolved.
8. The University is working with its third-party financial aid servicer to ensure Title IV disbursements, as outlined in award letters, are ultimately awarded.