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.