Finding Text
Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loan Program, Federal Pell Grant Program Federal Agency: U.S. Department of Education Pass-Through Entity: Not Applicable Assistance Listing Number: 84.268, 84.063 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 668.22) require the University to require the University to return the unearned portion of grants or loans to the student based on the correct calculations. Condition: The federal aid refunds for 2 students out of 2 tested were not calculated correctly and resulted in the University not refunding the correct amounts to the students. The sample was not a statistically valid sample but was determined using Chapter 21 - Audit Sampling Considerations of Uniform Guidance Compliance Audits of the Government Auditing Standards and Single Audits Audit Guide. Cause: The University did not calculate the refunds correctly, causing the students to not receive the correct refund. Effect: The University refunded the students the incorrect amount based on the calculation. Questioned Costs: The total amount that was under-refunded to students was $4,116. Recommendation: The University should modify its procedures for refunding awards to ensure the proper refund is calculated correctly, as well as disbursing refunds in a timely manner. Views of Responsible Officials: The University acknowledges and concurs with the finding and has corrected the student records discovered in the audit. The University has already implemented additional training for all Student Financial Services staff. In addition, the procedure for documenting, calculating and returning federal funds as a result of the refund process has been modified to provide an additional level of review.