Finding 598308 (2022-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-18
Audit: 18645
Organization: Midwives College of Utah (UT)
Auditor: Sikich LLP

AI Summary

  • Core Issue: Incorrect refund calculations for two out of thirteen drop students, indicating a significant deficiency.
  • Impacted Requirements: Compliance with the Return to Title IV refund calculation as per federal regulations (34 CFR 668.22).
  • Recommended Follow-Up: Credit $304 to affected students' accounts and improve controls over refund calculations to prevent future errors.

Finding Text

FINDING 2022-002: INCORRECT REFUND CALCULATIONS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN#: 84.063 FEDERAL AWARD YEAR: YEAR ENDED DECEMBER 31, 2022 Compliance Requirement: Special Tests and Provisions - Return of Title IV Funds (N.) Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested thirteen drop students and found two incorrect refund calculation. We consider this finding to be a significant deficiency. This is a repeat of prior year Finding 2021-003. Cause: The condition was caused by not properly adjusting days for a break at Step 2 of the Return to Title IV refund calculation. Effect: The result is the Institution returned funds to the Department of Education that should have been retained by the Institution. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for table. Recommendation: We recommend the Institution credit $304 to the students' accounts and tighten controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Categories

Student Financial Aid Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $810,644
84.063 Federal Pell Grant Program $476,211