FAC Explorer

Finding 59532 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 54887
Organization: La Roche University (PA)
Auditor: Baker Tilly US LLP

AI Summary

  • Core Issue: The University incorrectly refunded the unearned portion of a federal loan, returning excess funds.
  • Impacted Requirements: Compliance with Title IV regulations requires accurate refunds within 45 days of student withdrawal.
  • Recommended Follow-Up: Update refund procedures to ensure correct amounts are returned and conduct ongoing evaluations of these processes.

Finding Text

Finding 2022-002 Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency: U.S. Department of Education Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.22) require the University to return the unearned portion of grants or loans to the Title IV program within 45 days after a student withdraws. Condition/Context: 1 refund in a sample of 4 was returned at the incorrect amount and resulted in the University returning excess funds. The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The calculation of the unearned portion of the grant or loan to be returned was completed correctly but the incorrect amount was returned. Effect: The University processed incorrect refunds. Recommendation: The University should modify its procedures for processing the returns to ensure the correct amount is returned. Management Response: Calculations to determine the unearned portion of the grant or loan to be returned will be completed with applicable dates and required aid adjustments. Evaluation of procedures will be on-going as a best practice.

Corrective Action Plan

Finding 2022-002 Issue: The University completed a Return to Title IV (R2T4) worksheet and returned more unearned aid than the school was responsible for per the calculation. The R2T4 calculation and return of funds was completed in a timely fashion but the amount of unearned Direct PLUS Loan funds was not properly scheduled by the counselor. Program closeout for the year has been completed and no adjustment can be made to reclaim funds at this time. While no financial liability has fallen upon the student or parent borrower the Financial Aid Office agrees with the finding of inaccuracy. Corrective Action: The University began implementation of an enhanced procedure for Return to Title IV calculations beginning with Fall 2022 semester and includes a detailed review of all calculations to ensure compliance & accuracy. Responsibility: Identification & evaluation of students will be completed by office staff and reviewed by the Director of Financial Aid. Contact: Robert Clemens, Director of Financial Aid

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 59531 2022-001
    Significant Deficiency Repeat
  • 59533 2022-003
    Significant Deficiency
  • 59534 2022-003
    Significant Deficiency
  • 59535 2022-003
    Significant Deficiency
  • 59536 2022-003
    Significant Deficiency
  • 59537 2022-003
    Significant Deficiency
  • 635973 2022-001
    Significant Deficiency Repeat
  • 635974 2022-002
    -
  • 635975 2022-003
    Significant Deficiency
  • 635976 2022-003
    Significant Deficiency
  • 635977 2022-003
    Significant Deficiency
  • 635978 2022-003
    Significant Deficiency
  • 635979 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $15.28M
84.425 Covid-19 Education Stabilization Fund $2.47M
84.063 Federal Pell Grant Program $1.52M
84.038 Federal Perkins Loan Program $362,197
84.007 Federal Supplemental Education Opportunity Grants $122,900
84.033 Federal Work-Study Program $89,031