Finding 599072 (2022-001)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: The School returned Title IV funds late for two students, totaling $3,218.
  • Impacted Requirements: The School must calculate and return unearned Title IV assistance promptly as per federal regulations.
  • Recommended Follow-Up: Update policies and procedures to ensure timely returns of funds and monitor third-party servicer performance closely.

Finding Text

FINDING: 2022-001 Return of Title IV Funds Federal Agency / Federal Program: U.S. Department of Education / Student Financial Assistance Cluster Subject: Special Tests and Provisions (N) CFDA Number: Federal Pell Program ? 84.063 Questioned Costs: $3,218 Type of Finding: Other matters Perspective Information: Repeat finding: No Summary of Universe and Sample of attribute tested See Schedule of Findings and Questioned Costs for chart/table Criteria The School must determine for dropped students the amount of Title IV assistance the student has earned as of the withdrawal date. If the amount of title IV assistance earned is less than the amount disbursed, the University must return the difference to the Title IV program. 34 C.F.R. Sec. 6682.(a). Condition The School returned Pell funds late for two students. See Schedule of Findings and Questioned Costs for chart/table Cause The cause was due to an error by the School?s third party servicer. The School relied on it servicer to refund the appropriate amount in a timely manner and they failed to do so. Effect The School returned $3,218 in Pell funds late to DOE Recommendation The School should update it policies and procedures to ensure that R2T4?s are returned timely. Views of Responsible Officials The School performed the RT24?s in a timely manner and then requested from its third party servicer to return the necessary funds. The third party servicer failed to return them. Upon discovery, the School terminated its relationship with the servicer. The School will update its policies and procedures to ensure timely returns.

Categories

Questioned Costs Special Tests & Provisions Student Financial Aid

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.87M
84.425 Education Stabilization Fund - Heerf Student Aid Portion $1.07M
84.425 Education Stabilization Fund - Heerf Institutional Portion $1.05M
84.033 Federal Work-Study Program $41,053
84.007 Federal Supplemental Educational Opportunity Grants $26,499
84.268 Federal Direct Student Loans $6,188