Finding 60333 (2022-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 54570
Organization: Saint Francis University (PA)

AI Summary

  • Core Issue: The University incorrectly calculated federal aid refunds for 2 out of 2 students, leading to improper amounts being refunded.
  • Impacted Requirements: Title IV regulations mandate accurate calculations for returning unearned grants or loans to students.
  • Recommended Follow-Up: The University should enhance refund procedures and ensure timely, accurate calculations, along with ongoing staff training.

Finding Text

Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loan Program, Federal Pell Grant Program Federal Agency: U.S. Department of Education Pass-Through Entity: Not Applicable Assistance Listing Number: 84.268, 84.063 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.22) require the University to require the University to return the unearned portion of grants or loans to the student based on the correct calculations. Condition: The federal aid refunds for 2 students out of 2 tested were not calculated correctly and resulted in the University not refunding the correct amounts to the students. The sample was not a statistically valid sample but was determined using Chapter 21 - Audit Sampling Considerations of Uniform Guidance Compliance Audits of the Government Auditing Standards and Single Audits Audit Guide. Cause: The University did not calculate the refunds correctly, causing the students to not receive the correct refund. Effect: The University refunded the students the incorrect amount based on the calculation. Questioned Costs: The total amount that was under-refunded to students was $4,116. Recommendation: The University should modify its procedures for refunding awards to ensure the proper refund is calculated correctly, as well as disbursing refunds in a timely manner. Views of Responsible Officials: The University acknowledges and concurs with the finding and has corrected the student records discovered in the audit. The University has already implemented additional training for all Student Financial Services staff. In addition, the procedure for documenting, calculating and returning federal funds as a result of the refund process has been modified to provide an additional level of review.

Corrective Action Plan

Finding 2022-001: Return of Title IV Funds Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loan Program, Federal Pell Grant Program Federal Agency: U.S. Department of Education Pass-Through Entity: Not Applicable Assistance Listing Number: 84.268, 84.063 Federal Award Year: June 30, 2022 Corrective Action Taken The University?s Interim Financial Aid Director, Stephanie Schrift, has required all Student Financial Services staff to attend virtual trainings on the return of Title IV funds process in April 2023. In addition, Stephanie Schrift (Interim Director) will process all R2T4s via COD's calculator and Elizabeth Susick (Assistant Director) will verify and sign off on the calculations once complete. This will provide a two-step validation procedure for all R2T4 returns.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Subrecipient Monitoring

Other Findings in this Audit

  • 60334 2022-001
    Significant Deficiency Repeat
  • 636775 2022-001
    Significant Deficiency Repeat
  • 636776 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $17.46M
84.425 Covid-19 - Heerf - Institutional Portion $2.37M
84.063 Federal Pell Grant Program $2.12M
84.425 Covid-19 - Higher Education Emergency Relief Fund (heerf) - Student Aid Portion $2.08M
84.038 Federal Perkins Loan Program $1.14M
84.047 Trio_upward Bound $420,270
84.033 Federal Work-Study Program $231,881
59.037 Small Business Development Centers $225,714
17.207 Vallo Veteran Employment and Training Administration $158,645
93.778 Medical Assistance Program - Independent Monitoring for Quality $155,486
84.007 Federal Supplemental Educational Opportunity Grants $136,923
15.255 Office of Surface Mining and Reclamation Science and Technology Projects Related to Coal Mining and Reclamation $50,954
11.457 Chesapeake Bay Studies - National Oceanic and Atmospheric Administration $36,735
10.868 Rural Energy for America Program (reap) $34,272
14.228 Community Development Block Grants/state's Program: Childcare Centers (cares) $17,946
15.808 U.s. Geological Survey_ Research and Data Collection Cooperative Agreements $5,764
47.049 Major Research Instrumentation Program/atomic Force Microscope $3,734
84.366 Mathematics and Science Partnerships $2,620
17.245 Trade Adjustment Assistance $2,235