Finding 609916 (2022-003)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-02-13
Audit: 35306
Organization: Moore College of Art & Design (PA)

AI Summary

  • Core Issue: The College incorrectly calculated federal aid refunds for students who withdrew, leading to excess funds returned to the Title IV Program.
  • Impacted Requirements: Compliance with 34 CFR 668.22, which mandates accurate calculations of Title IV funds based on withdrawal dates.
  • Recommended Follow-Up: The College should improve R2T4 calculation processes and implement a thorough review system to ensure accurate refund calculations.

Finding Text

Finding 2022-003 - Return of Title IV Funds Federal Program: Student Financial Aid Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable CFDA Number: 84.063, 84.268 Federal Award Number: PK268K222121, P063P212121 Federal Award Year: June 30, 2022 Repeat Finding: 2021-001 Criteria: 34 CFR 668.22 requires 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 grant or loan assistance that the student earned as of the student's withdrawal date in accordance with Federal regulations and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition/Context: The federal aid refunds for two of five students tested as part of our sample were not calculated correctly and resulted in the College refunding incorrect amounts to the Title IV Program. In addition, the College identified five other students for which the R2T4 calculations were incorrect. The sample was not a statistically valid sample. Questioned Costs: For federal award P268K222121, Direct Loans, the College returned $14 more than required for one student tested. For federal award P063P212121, Pell, the college returned $67 more than required for one student. For the five additional students that the College identified as having incorrect return calculations, $457 was returned in excess for award P063P212121 and $84 was returned in excess for award P268K222121. Cause: The College did not properly calculate the number of days in a term (excluding breaks of five days or more) which resulted in the incorrect unearned aid percentage to be used in the refund calculation. Effect: The amounts refunded to the Department of Education were incorrect. To be specific, the amount returned was more than should have been returned. Recommendation: The College should reevaluate the process around completing R2T4 calculations. Also, a more rigorous review process should be implemented over refund calculations in order to ensure the proper calculations of the R2T4 worksheet. Views of Responsible Officials and Planned Corrective Actions: The College hired a new Director of Financial Aid in January 2021 and the academic year 2020/2021 was the first one she completed. While the College hired an external consultant to assist her, additional training in this area is necessary. The College has since hired a new Director of Financial Aid who has more years of experience in the field. The College will be providing additional consulting support going forward when a new Director of Financial Aid is hired.

Categories

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

Other Findings in this Audit

  • 33471 2022-002
    Significant Deficiency
  • 33472 2022-003
    Significant Deficiency Repeat
  • 33473 2022-001
    Significant Deficiency
  • 33474 2022-003
    Significant Deficiency Repeat
  • 609913 2022-002
    Significant Deficiency
  • 609914 2022-003
    Significant Deficiency Repeat
  • 609915 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.80M
84.063 Federal Pell Grant Program $742,455
84.038 Federal Perkins Loan Program $686,547
84.007 Federal Supplemental Educational Opportunity Grants $111,033
84.033 Federal Work-Study Program $89,948