Finding 617905 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-10-30
Audit: 32302
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The University failed to return unearned Title IV aid on time due to late determination dates and calculation errors.
  • Impacted Requirements: Noncompliance with 34 CFR 668.22 regarding timely and accurate R2T4 calculations for student withdrawals.
  • Recommended Follow-Up: Assign an experienced financial aid staff member to regularly review R2T4 calculations and collaborate with other offices to ensure compliance with Title IV regulations.

Finding Text

Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely due to late dates of determination. Additionally, there were several returns with the wrong information used in the calculation, causing the wrong amounts to be returned to Title IV. Criteria: 34 CFR 668.22 Questioned Costs: $3,257 Context: Out of 15 students tested for timely returns, there were 4 students who had a date of determination beyond 14 days. These delays resulted in 3 students with returns of Title IV funds totaling $5,597 ranging from 8 to 246 days late. Additionally, out of 15 students tested for proper R2T4 calculation, there were 2 students that had an incorrect R2T4 calculation. One was due to the wrong number of days in the term in the calculation, resulting in the wrong amount of funds returned. The other error was due to the student not meeting a modular withdrawal exemption, therefore, there should have had a return made. However, the University did not complete an R2T4 until the audit. The total calculation errors resulted in an excess of $23 returned that was not necessary. Between the late returns and the calculation errors, total questioned costs were $3,257. All errors were corrected during the course of the audit. Cause: Due to the complexity of the new modular regulations and delays from other offices, the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs, inaccurate amount returned, and late return of funds to Title IV. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Additionally, we recommend the University work with other University offices to review Title IV regulations for attendance taking schools to work to achieve compliance on the timeliness of returns to Title IV. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Questioned Costs Student Financial Aid Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 41462 2022-001
    Material Weakness
  • 41463 2022-001
    Material Weakness
  • 617904 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $24.06M
84.063 Federal Pell Grant Program $3.25M
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $3.08M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $1.78M
84.038 Federal Perkins Loan Program $1.29M
84.033 Federal Work-Study Program $234,519
84.007 Federal Supplemental Educational Opportunity Grants $117,723
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $47,150
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $20,500