Finding 596853 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-20
Audit: 25878
Organization: Western Seminary (OR)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The Seminary failed to return unearned Title IV aid for one student who unofficially withdrew.
  • Impacted Requirements: This violates 34 CFR 668.22 regarding Return of Title IV (R2T4) calculations.
  • Recommended Follow-Up: Implement a 0-credit report at semester's end to ensure timely R2T4 calculations for unofficial withdrawals.

Finding Text

Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew unofficially, the Seminary did not always return unearned Title IV aid. Criteria: 34 CFR 668.22 Questioned Costs: $1,207 Context: Out of 7 students tested for withdrawals, 1 unofficial withdrawal did not have a return calculation initially performed. This student is in the process of being corrected. Cause: This was due to the Seminary evaluating the last date of attendance based on the first absence instead of the last active date of participation. This student's last date of participation was just before the 60% mark of the semester. Effect: A return of loans was not initially completed for one student. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the Seminary run a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4's are completed timely when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Questioned Costs Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.51M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $162,781
84.425 Covid-19 Education Stabilization Fund Heerf - Fund for the Improvement of Postsecondary Education Formula Grant (fipse) $128,304