Finding Text
Finding No. 2022-002 - Special Test and Provisions ? Return of Title IV Funds ? Determination of Funds Earned Federal Program Students Financial Assistance Programs Cluster: Assistance Listing 84.007 - Federal Supplemental Educational Opportunity Grants (FSEOG) Assistance Listing 84.033 - Federal Work-Study Program Assistance Listing 84.063 - Federal Pell Grant Program Assistance Listing 84.268 - Federal Direct Student Loans Program Name of Federal Agency U.S. Department of Education Pass-through Entity N/A Criteria 34 CFR Section 668.22(a) states that 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 grant or loan assistance that the student earned as of the student?s withdrawal date. Condition In testing compliance with the requirements for the Return of Title IV funds, we selected all nine (9) students who withdrew, dropped out or failed to attend to the University and had received Title IV funds for the academic period in which the student withdrew, dropped out or failed to attend the University. As a result of our testing of these compliance requirements, we noted one (1) instance, or 11% of the sample selected, in which the University failed to calculate the amount of the Title IV grant (PELL) that the student had earned as of the student?s withdrawal date, as follows: ?See Schedule of Findings and Questioned Costs for chart/table? Context Of the nineteen (19) cases of students who withdrew, dropped out, or failed to attend the University, we selected all nine (9) students that had received Title IV funds for the academic period in which the student withdrew, dropped out or failed to attend to the University and noted one (1) instance of noncompliance (PELL) with the required criteria. The composition of the audit samples for the Pell grant program and the population from which the samples were drawn were as follows: ?See Schedule of Findings and Questioned Costs for chart/table? Cause The instance of non-compliance was mainly due to a human error in the data entry of the dates. Effect As a result of these conditions, the USDE may issue warnings and/or impose penalties on the University. In addition, they could result in reduced availability of federal funds to other students in need of financial assistance. Questioned Cost As of the date the financial statements were available to be issued, questioned costs were not determined, since the amount of $10 had been paid by the University. Identification of a repeat finding This is a repeat finding from the immediate previous audit. Finding 2021-006. Recommendation The University needs to improve its policies and procedures to ensure financial aid personnel is aware of all applicable regulations. Also, additional review and monitoring procedures should be implemented to ensure that the determination of the earned Title IV funds is made for all applicable students, including those who received incomplete or failing grades. Views of responsible officials and corrective action plan The University management agrees with this finding. Please refer to the corrective action plan on pages 66-76.