Finding 619100 (2022-005)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-12
Audit: 53516
Organization: Virginia Union University (VA)
Auditor: Brown Edwards

AI Summary

  • Core Issue: The Institution failed to return federal funds for four out of five students who withdrew, missing the 45-day deadline.
  • Impacted Requirements: Regulations mandate timely refunds to the Department of Education for students who withdraw, which were not met due to weak processes and controls.
  • Recommended Follow-Up: Enhance training and processes to ensure accurate and timely calculations and remittances of federal refunds for withdrawing students.

Finding Text

Criteria: Regulations require the Institution refunds calculated for students who withdrew during a semester be remitted to the Department of Education timely, typically within 45 days of withdrawal. Condition: Five students were selected for withdrawal testwork, and of those five students, the Institution calculated an amount that needed to be returned for four of those students (one student tested did not have to return any federal funds as this student met the requirement to keep all aid received). None of those students who required funds to be returned based upon their withdrawal terms and resulting return of funding calculations were returned timely to the Department of Education. Cause: Weak process and controls over the return of funds for students who withdrew during FY2022. Effect: Funds were held in the University?s cash account longer than necessary and such funds were no longer technically the property of the University after the student withdrew from the University. Questioned costs: $-0- Perspective information: The population was the return of Title IV funds - students with Title IV assistance who officially withdrew and received all failing and/or incomplete grades. The total population (in students) was 57. A sample size of 5. The number in sample size that separated from the University and required return of previously awarded funds to the Department of Education was 4. The number of exceptions found in the preceding column was 4. Identification of repeat findings: Not a repeat finding. Recommendation: The University should increase its efforts through training to ensure that federal refunds are calculated and remitted timely when students withdraw from the Institution. Views of responsible officials: See Client?s Corrective Action Plan.

Categories

Student Financial Aid

Other Findings in this Audit

  • 40152 2022-004
    Material Weakness
  • 40153 2022-001
    Material Weakness Repeat
  • 40154 2022-002
    Significant Deficiency Repeat
  • 40155 2022-003
    Significant Deficiency Repeat
  • 42658 2022-005
    Material Weakness
  • 42659 2022-006
    Material Weakness
  • 42660 2022-007
    Material Weakness
  • 616594 2022-004
    Material Weakness
  • 616595 2022-001
    Material Weakness Repeat
  • 616596 2022-002
    Significant Deficiency Repeat
  • 616597 2022-003
    Significant Deficiency Repeat
  • 619101 2022-006
    Material Weakness
  • 619102 2022-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.62M
84.425 Education Stabilization Fund $4.90M
84.063 Federal Pell Grant Program $3.50M
47.076 Education and Human Resources $451,395
84.007 Federal Supplemental Educational Opportunity Grants $390,500
84.031 Higher Education_institutional Aid $380,517
84.047 Trio_upward Bound $331,351
84.042 Trio_student Support Services $308,503
84.033 Federal Work-Study Program $238,349
84.044 Trio_talent Search $194,307
99.U01 National Institue of General Medical Sciences: Institutional Research and Academic Career Devleopment Awards $26,303