Finding 620159 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-21

AI Summary

  • Core Issue: The University failed to return unearned Title IV funds within the required 45 days after students withdrew.
  • Impacted Requirements: This violates 34 CFR 668.22 regulations regarding timely return of funds.
  • Recommended Follow-Up: Implement regular reviews of withdrawal lists and R2T4 calculations, and ensure experienced staff oversee the process to maintain compliance.

Finding Text

Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The University did not return unearned Title IV funds within the 45 days from the determination of the student's withdrawal. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 40 students, 2 students who withdrew during the audit period tested had a total of $5,655 in Title IV funds returned late. Both unofficial withdrawals for Fall 2021 had funds returned in September and October 2022 as the financial aid director caught during the 2021-2022 audit that the funds had not yet been returned. Cause: Implementation of new modular withdrawal regulations and lack of review over individual R2T4 calculations, particularly over unofficial withdrawals Effect: Return of Title IV funds were not performed timely Identification as repeat finding, if applicable: n/a Recommendation: We recommend that the University run a listing of withdrawals after each semester and compare the list of students who had R2T4?s completed to ensure completeness. We further recommend a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4?s are completed timely when required. 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. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Internal Control / Segregation of Duties Student Financial Aid Significant Deficiency

Other Findings in this Audit

  • 43716 2022-001
    Significant Deficiency
  • 43717 2022-001
    Significant Deficiency
  • 620158 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $37.65M
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $4.12M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $3.85M
84.063 Federal Pell Grant Program $3.59M
84.038 Federal Perkins Loan Program $1.74M
84.033 Federal Work-Study Program $570,743
93.264 Nurse Faculty Loan Program (nflp) $415,594
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $385,148
84.007 Federal Supplemental Educational Opportunity Grants $269,190
93.364 Nursing Student Loans $213,445