Finding 620147 (2022-003)

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Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-29
Audit: 48679
Organization: Lenoir-Rhyne University (NC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The University failed to properly calculate the return of Title IV funds for some students who withdrew, leading to non-compliance with federal guidelines.
  • Impacted Requirements: Inadequate record-keeping for students' last dates of attendance and incorrect calculations for return of Title IV funds.
  • Recommended Follow-Up: Enhance procedures for R2T4 calculations, provide additional staff training, and ensure collaboration between Financial Aid and Academic Records for accurate documentation.

Finding Text

Federal Program Information: Student Financial Assistance Cluster: Federal Supplemental Education Opportunity Grants (Assistance Listing #84.007), Federal Work-Study Program (Assistance Listing #84.033), Federal Pell Grant Program (Assistance Listing #84.063), Federal Direct Loan Program (Assistance Listing #84.268) Criteria or Specific Requirement: Special Tests and Provisions ? Return of Title IV Funds - When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. Condition: The University did not prepare certain students? return calculations properly. In addition, the University did not maintain adequate records to support its determination of the last date of attendance for students enrolled in a distance education program. Cause: Administrative oversight. Effect or Possible Effect: The University was not in compliance with required federal guidelines. Questioned Costs: Below reporting threshold. Context: For 1 of 4 students tested, the University used the incorrect number of days in term/payment period. For 2 of 4 students tested, the University was unable to substantiate the students? last dates of attendance. Identification of Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend that the University enhance its procedures over the preparation and review of R2T4 calculations to ensure compliance with the return of Title IV funds requirements. Views of Responsible Officials: The University has reviewed current practices related to withdrawal/R2T4 calculations. As a result, the University will enhance current policy and procedures to better support staff in the proper calculation of return of Title IV funds requirements. These enhancements will include but are not limited to; additional staff training and periodic secondary review. The Office of Financial Aid will also work with the Office of Academic Records to document substantiated last dates of attendance for withdrawing students.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $20.78M
84.063 Federal Pell Grant Program $3.04M
84.425 Education Stabilization Fund $389,393
84.007 Federal Supplemental Educational Opportunity Grants $253,509
84.033 Federal Work-Study Program $132,876
84.038 Federal Perkins Loan Program $0