Finding 8158 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-01-10
Audit: 10714
Organization: Johnson University (TN)

AI Summary

  • Core Issue: The University failed to provide documentation showing that students were offered post-withdrawal disbursements, leading to compliance issues.
  • Impacted Requirements: This deficiency violates 34 CFR 668.22(a)(6), which mandates timely offers of disbursement for eligible grant and loan funds.
  • Recommended Follow-Up: Ensure proper documentation is maintained for all notifications regarding post-withdrawal disbursements to meet compliance standards.

Finding Text

2023-002 Significant Deficiency: Documentation Regarding Offer of a Post-Withdrawal Disbursement (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268; Federal Pell Grant Program, ALN #84.063) Criteria: In accordance with 34 CFR 668.22(a)(6), a post-withdrawal disbursement must be made to the student for any grant funds they are eligible for within 45 days of the date of determination. Moreover, the University must offer to disburse directly to a student, or parent in the case of a parent PLUS loan, any amount of a post-withdrawal disbursement of loan funds that is not credited to the student’s account. The disbursement of loan funds must occur after the University received confirmation from the student’s or parent’s intentions, respectively. Statement of Condition: During the 2023 audit, it was noted that the University was unable to provide supporting documentation detailing the student was offered a post-withdrawal disbursement. Questioned Costs: This finding is monetary in nature. In the instances noted in testing, the total error identified is $736 in under-award. Extrapolation of this monetary error was not necessary as the 11 withdrawal students tested as part of the 2023 audit were the entire withdrawal population for the period under audit. Perspective Information: The 2023 audit included a detailed testing of 11 withdrawal student files, of which this significant deficiency applies to 3, indicating an error rate of 27.3%. Cause and Effect: Due to the University’s lack of retention of appropriate documentation, we were unable to determine or test the post-withdrawal disbursements were appropriately offered to the affected students resulting in the inability to appropriately review the documentation to satisfy testing requirements. Recommendation: The University should maintain documentation of sending the student, or parent when applicable, notification regarding their eligibility for a post-withdrawal disbursement. View of Responsible Officials: While the University was completing this process the lack of documentation has been addressed. The University now has the student verify receipt of this information on the withdrawal form itself and has other notification procedures in place to ensure that this is completed.

Categories

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Eligibility Significant Deficiency

Other Findings in this Audit

  • 8155 2023-002
    Significant Deficiency
  • 8156 2023-003
    Significant Deficiency
  • 8157 2023-004
    Significant Deficiency
  • 8159 2023-003
    Significant Deficiency
  • 8160 2023-004
    Significant Deficiency
  • 8161 2023-005
    Significant Deficiency
  • 8162 2023-006
    Significant Deficiency
  • 8163 2023-001
    Material Weakness
  • 584597 2023-002
    Significant Deficiency
  • 584598 2023-003
    Significant Deficiency
  • 584599 2023-004
    Significant Deficiency
  • 584600 2023-002
    Significant Deficiency
  • 584601 2023-003
    Significant Deficiency
  • 584602 2023-004
    Significant Deficiency
  • 584603 2023-005
    Significant Deficiency
  • 584604 2023-006
    Significant Deficiency
  • 584605 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.23M
84.063 Federal Pell Grant Program $1.70M
84.033 Federal Work-Study Program $138,519
84.425 Covid-19 Education Stabilization Fund $102,675
84.007 Federal Supplemental Educational Opportunity Grants $69,863
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $9,430