Finding 610568 (2022-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-29
Audit: 33599
Organization: Texas Wesleyan University (TX)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The University failed to calculate and return Title IV funds accurately and on time for students who withdrew.
  • Impacted Requirements: Compliance with 34 CFR 668.22(a)(1) through (a)(5) regarding timely and correct return of funds.
  • Recommended Follow-Up: Update internal controls to ensure accurate calculations for students withdrawing from modular programs and provide staff training based on new guidance.

Finding Text

Criteria or specific requirement ? Special Tests and Provisions ? Return of Title IV Funds (34 CFR 668.22(a)(1) through (a)(5) Condition ? The University?s internal controls did not ensure the calculation of amounts to be returned to the U.S. Department of Education were correct and were performed timely. Questioned costs - $0 Context ? Out of the population of 37 students who withdrew, 6 were selected for testing. Our sampling method was not, and was not intended to be, statistically valid. One of the withdrawals tested had more returned to the U.S. Department of Education than was required and the amounts were returned approximately 6 months after the withdrawal. Effect ? The amount of Title IV funds returned to the U.S. Department of Education was incorrect and the funds were not returned timely. Cause ? The student who withdrew was attending two modules in one payment period and withdrew from both modules. The calculation of days attended was incorrect. Identification as a repeat finding, if applicable ? 2021-001 and 2020-001 Recommendation ? The University should update their controls to ensure that the days attended for students who withdrawal from a program offered in modules is correct. Views of responsible officials and planned corrective actions ? The Financial Aid Administrator acknowledges the error with the Title IV Calculation for the student who was enrolled in two modules in one semester. Initially, the calculation was based on the student being enrolled in one module. When the file was chosen for the 2021-2022 audit, the error was caught that the student was enrolled in module two, as well. The Director of Financial Aid has reached out to ?Ask a Fed? for guidance on the calculation of the numerator in a Title IV calculation about modules. Once guidance is received, we will incorporate it into our procedures and provide training to staff.

Categories

Special Tests & Provisions Student Financial Aid Internal Control / Segregation of Duties

Other Findings in this Audit

  • 34122 2022-001
    Significant Deficiency Repeat
  • 34123 2022-001
    Significant Deficiency Repeat
  • 34124 2022-001
    Significant Deficiency Repeat
  • 34125 2022-001
    Significant Deficiency Repeat
  • 34126 2022-001
    Significant Deficiency Repeat
  • 610564 2022-001
    Significant Deficiency Repeat
  • 610565 2022-001
    Significant Deficiency Repeat
  • 610566 2022-001
    Significant Deficiency Repeat
  • 610567 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $23.67M
84.063 Federal Pell Grant Program $3.74M
84.047 Trio_upward Bound $1.12M
84.425 Education Stabilization Fund $342,920
84.365 English Language Acquisition State Grants $324,859
84.007 Federal Supplemental Educational Opportunity Grants $321,805
84.033 Federal Work-Study Program $199,255
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $6,709