Finding 610149 (2022-005)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-30
Audit: 36350
Organization: Tusculum University (TN)

AI Summary

  • Core Issue: The University miscalculated the total number of calendar days for Title IV fund calculations, leading to an incorrect percentage of aid earned.
  • Impacted Requirements: This finding violates 34 CFR 668.22(f), which outlines how to calculate payment periods and excludes certain days from the total.
  • Recommended Follow-Up: Implement a two-step review process for calculating R2T4, ensuring both the Director and Associate Director of Financial Aid independently verify the calculations for accuracy.

Finding Text

2022-005 Significant Deficiency: Return to Title IV Funds (U.S. Department of Education, William D. Ford Direct Loan Program, CFDA #84.268; Federal Pell Grant Program, CFDA #84.063; Federal Supplemental Opportunity Grant Program, CFA #84.007; and TEACH Grant Program, CFDA #84.379) Criteria: In accordance with 34 CFR 668.22(f), in the calculation of the percentage of payment period and/or period of enrollment completed, the total number of calendar days in a payment and/or enrollment period includes all days within the period, except that institutionally scheduled breaks of at least 5 consecutive calendar days and days in which the student was on an approved leave of absence are excluded from the total number of calendar days in a payment period and/or period of enrollment. Statement of Condition: During the audit, it was noted that the University used the incorrect number of total days in the payment period or period of enrollment in calculating the percentage of payment period and/or period of enrollment completed. Questioned Costs: The known monetary error is $55 over-awarded. Extrapolation did not result in an estimated monetary error in excess of the reporting threshold of $25,000. Perspective Information: The audit included a detailed testing of 40 student files, of which this significant deficiency applies to 4, indicating an error rate of 10.00%. Cause and Effect: For withdrawal calculations performed in the spring semester, the total day count was not performed per the instructions described in the Student Financial Aid Handbook. The use of an incorrect total number of calendar days will result in a miscalculation of percentage of Title IV aid earned and may additionally result in monetary error. Recommendation: The University should ensure that the total number of calendar days in the payment period or period of enrollment are counted correctly utilizing the guidance provided by the Compliance Supplement and the Student Financial Aid Handbook. View of Responsible Officials: The University concurs with this finding. The R2T4 calendar will now be a two-step process in which the Director of Financial Aid drafts the calendar and then the Associate Director of Financial Aid reviews the calendar each semester for accuracy. Furthermore, during the R2T4 process, the Director of Financial Aid shall perform the first calculation. Then, the Associate Director of Financial Aid shall review the calculation. Both will calculate the R2T4 independently of each other to ensure that the calculation is correct. Then, after the Associate Director has independently calculated the R2T4, the Associate Director shall check her calculation against the Director of Financial Aid?s calculation. Once the accuracy of the R2T4 has been confirmed, the Associate Director shall process the changes to the student?s account.

Categories

Questioned Costs Student Financial Aid Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 33706 2022-004
    Significant Deficiency
  • 33707 2022-005
    Significant Deficiency
  • 33708 2022-001
    Significant Deficiency
  • 33709 2022-002
    Significant Deficiency
  • 33710 2022-003
    Significant Deficiency
  • 33711 2022-004
    Significant Deficiency
  • 33712 2022-005
    Significant Deficiency
  • 33713 2022-001
    Significant Deficiency
  • 33714 2022-002
    Significant Deficiency
  • 33715 2022-003
    Significant Deficiency
  • 33716 2022-004
    Significant Deficiency
  • 33717 2022-005
    Significant Deficiency
  • 33718 2022-004
    Significant Deficiency
  • 33719 2022-005
    Significant Deficiency
  • 610148 2022-004
    Significant Deficiency
  • 610150 2022-001
    Significant Deficiency
  • 610151 2022-002
    Significant Deficiency
  • 610152 2022-003
    Significant Deficiency
  • 610153 2022-004
    Significant Deficiency
  • 610154 2022-005
    Significant Deficiency
  • 610155 2022-001
    Significant Deficiency
  • 610156 2022-002
    Significant Deficiency
  • 610157 2022-003
    Significant Deficiency
  • 610158 2022-004
    Significant Deficiency
  • 610159 2022-005
    Significant Deficiency
  • 610160 2022-004
    Significant Deficiency
  • 610161 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $46.18M
84.268 Federal Direct Student Loans $7.65M
84.063 Federal Pell Grant Program $2.74M
84.047 Trio_upward Bound $1.29M
84.044 Trio_talent Search $650,272
84.042 Trio_student Support Services $566,234
84.425 Covid-19 Education Stabilization Fund $338,986
84.007 Federal Supplemental Educational Opportunity Grants $135,453
84.033 Federal Work-Study Program $57,565
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $23,575
84.038 Federal Perkins Loan Program $1,081