Finding Text
2022-002 Student Financial Assistance Program Cluster ? Department of Education Federal Financial Assistance Listing/CFDA #84.268 Federal Direct Student Loans - 2021/2022 P268K211430 Special Tests & Provisions: Return of Title IV Funds Material Weakness in Internal Control over Compliance and Noncompliance Criteria: The unearned amount of Title IV assistance to be returned is calculated by subtracting the amount of Title IV assistance earned by the student from the amount of Title IV aid that was disbursed to the student as of the date of the institution?s determination that the student withdrew (34 CFR 668.22(e)). Condition: One instance was identified where the Return of Title IV calculation was not completed. Another instance was identified where the Return of Title IV calculation was completed using the incorrect withdrawal date. Additionally, one instance was identified where the Return of Title IV calculation was completed, but the funds were returned late. Cause: The University did not perform a Return of Title IV calculation for students who completed an interim course and then withdrew during the spring semester. The incorrect withdrawal date was used to calculate the amount of aid to be returned. Process to ensure that funds were submitted in a timely manner were not followed. Effect: The University should return an additional $6,506 based on the corrected Return of Title IV calculations. Questioned Costs: None reported over $25,000 Context/Sampling: Of the 30 students in which a Return of Title IV funds were calculated, 11 were tested. There were also 14 additional students that were tested based on a population of all withdrawn students or 78 students. The amount tested was $25,000 of the total population of funds received of $416,000. Repeat Finding from Prior Years: Yes Recommendation: The University should review its current controls over Return of Title IV calculations to ensure that errors are detected and corrected timely. Views of Responsible Officials: Management agrees. Management?s complete response can be found in the separately issued corrective action plan.