FAC Explorer

Finding 584471 (2022-009)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-01-09
Audit: 10523
Organization: Central State University (OH)
Auditor: Crowe LLP

AI Summary

  • Core Issue: The University failed to properly calculate and return Title IV funds for students who withdrew, violating federal regulations.
  • Impacted Requirements: Lack of documentation for withdrawals, incomplete records of funds returned, and delays in returning funds within the required 45 days.
  • Recommended Follow-Up: Update policies and procedures for processing Title IV aid calculations, enhance staff training, and improve the ERP system to minimize errors.

Finding Text

Federal Program Information: Federal Direct Loan Program, ALN #84.268, Federal Pell Grant Program, ALN #84.063, Federal Supplemental Educational Opportunity Grants, ALN #84.007 Criteria: 34 CFR 668.22 outlines when a recipient of the loan program withdraws during the year, the University must determine the amount of the loan that the student earned as of the student’s withdrawal date for a Return of Title IV Funds. Condition: The University did not comply with all requirements associated with the calculation and return of Title IV funds for students who withdrew during an academic term. Context: a) The registrar did not maintain support for the withdraw slips for the individuals that had official withdrawals during the fiscal year. b) The University was unable to provide a complete population of those that had Return of Title IV funds returned during the fiscal year. c) Thirty-four students in our sample had calculations performed but the amount calculated for the school to return in the amount of $65,826 was not returned to the Department of Education within the 45 day requirement. d) Two students were entitled to post-withdrawal disbursement of Pell funds and the funds were not provided to them. Questioned Cost: Unknown Effect: Errors were made during the calculations, support was not maintained and calculations were not performed. Cause: The Student Financial Aid office experienced turnover and the process to review the calculations was not completed during fiscal year 2022. Repeat Finding: Yes Recommendation: We recommend that the University review and update its policies and procedures in place over processing and review of Return of Title IV Aid Calculations. Response: Due to high turnover within multiple departments tasked with administering Financial Aid and the time required for the training of new staff on the aid disbursement process, errors were made due to lack of knowledge of the rules. Training and verification of information at every level is a top priority. The staff now has a much better understanding of the process and rules concerning awards. In addition, the director’s are actively working on improvements to the ERP system, “Banner”, so that errors that were due to human activities are reduced or eliminated. Already several processes, such as confirming attendance for aid posting is automatic. Now, more than one staff member is trained and responsible for processes and the team has consistent scheduled follow-up meetings on key actions in this area. Responsible Person: Director of Financial Aid (Mitch Dedor) & Registrar (Amanda Koci) Completion Date: December 2023

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 8029 2022-009
    Material Weakness Repeat
  • 8030 2022-009
    Material Weakness Repeat
  • 8031 2022-009
    Material Weakness Repeat
  • 8032 2022-007
    Material Weakness Repeat
  • 8033 2022-008
    Significant Deficiency
  • 8034 2022-010
    Significant Deficiency Repeat
  • 584472 2022-009
    Material Weakness Repeat
  • 584473 2022-009
    Material Weakness Repeat
  • 584474 2022-007
    Material Weakness Repeat
  • 584475 2022-008
    Significant Deficiency
  • 584476 2022-010
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $11.68M
84.268 Federal Direct Student Loans $8.98M
10.512 Agriculture Extension at 1890 Land-Grant Institutions $3.37M
10.205 Payments to 1890 Land-Grant Colleges and Tuskegee University $3.23M
84.031 Higher Education_institutional Aid $2.85M
84.007 Federal Supplemental Educational Opportunity Grants $1.18M
12.360 Research on Chemical and Biological Defense $579,962
10.524 Scholarships for Students at 1890 Institutions (b) $575,652
10.500 Cooperative Extension Service $541,354
84.042 Trio_student Support Services $399,675
84.120 Minority Science and Engineering Improvement $341,837
84.047 Trio_upward Bound $308,019
84.033 Federal Work-Study Program $294,645
20.U01 Smokable Hemp Flower and E-Cigarettes $261,329
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $92,460
84.425 Education Stabilization Fund $90,076
10.902 Soil and Water Conservation $87,930
12.800 Air Force Defense Research Sciences Program $83,459
10.202 Cooperative Forestry Research $82,434
10.514 Expanded Food and Nutrition Education Program $82,364
47.049 Mathematical and Physical Sciences $72,047
10.216 1890 Institution Capacity Building Grants $67,761
20.701 University Transportation Centers Program $39,639
10.001 Agricultural Research_basic and Applied Research $26,242
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $24,518
10.515 Renewable Resources Extension Act and National Focus Fund Projects $24,424
43.001 Science $23,545
47.076 Education and Human Resources $22,526
10.523 Centers of Excellence at 1890 Institutions (b) $21,492
84.027 Special Education_grants to States $21,232
12.560 Dod, Ndep, Dotc-Stem Education Outreach Implementation $18,868
15.954 National Park Service Conservation, Protection, Outreach, and Education $17,508
10.170 Specialty Crop Block Grant Program - Farm Bill $15,693
47.041 Engineering $6,675
21.019 Coronavirus Relief Fund $6,226
12.U01 Fungal Biodegradation Responses $5,438
10.311 Beginning Farmer and Rancher Development Program $5,342
10.215 Sustainable Agriculture Research and Education $4,832
10.912 Environmental Quality Incentives Program $4,556
10.310 Agriculture and Food Research Initiative (afri) $4,078
93.788 Opioid Str $4,049
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $3,772
10.229 Extension Collaborative on Immunization Teaching & Engagement $1,026