Finding Text
Identification of the federal program: U.S. Department of Education Student Financial Aid Cluster Criteria or specific requirement: Uniform Guidance for Student Financial Aid (SFA) Programs {III. Compliance Requirements, N. Special Tests and Provisions, 3. Return of Title IV Funds? Compliance requirements (34 CFR 668.22 (a)(1) through (a)(5))} stipulates that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student on their behalf as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs. Condition: The University did not properly return Title IV funds for two students who withdrew during fiscal year 2022. Cause: The University?s Banner system did not properly capture the required credit to the students? account. Effect or potential effect: Unearned Title IV funds are not properly returned. Questioned costs: None Context: We selected a total of 11 students who withdrew during the fiscal year to test that calculation of Title IV funds to be returned are properly performed and funds are received from students in compliance with Title IV standards. Two instances of noncompliance were identified in which funds were either not collected from the student or funds were incorrectly awarded after collection was made. Repeat finding: No Recommendation: We recommend management implement a review process to ensure that all Title IV funds are properly received for applicable withdrawn students. Views of responsible officials: The University agrees with the finding. Refer to the University?s Corrective Action Plan.