Finding Text
Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.063 and 84.268; Department of Education; Federal Pell Grant Program and Federal Direct Loan Program
Federal Award Identification Number and Year - N/A
Pass through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - Yes - 2022 001
Criteria - Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education (ED) as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew (34 CFR 668.173(b)).
Condition - The University did not return Title IV funds to the Department of Education within the required time frame for certain students who required a return of funds, and it did not initially identify all students who required a return of Title IV funds.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - Of the 25 withdrawn students tested for proper return of Title IV funds, the funds for 3 students requiring a return were not returned to ED by the University within the required time frame. The 3 errors identified were for the fall 2022 and spring 2023 term.
Cause and Effect - The University had a change in system and it changed the process for exporting withdrawal reports. This led to returns of Title IV funds to ED being completed outside the required time frame, and/or students who required a return of Title IV funds were missed.
Recommendation - We recommend that the University institute a process to ensure that all returns of Title IV aid are calculated and returned within the required time frame.
Views of Responsible Officials and Corrective Action Plan - Shawnee State University will perform a comprehensive review of financial aid procedures (including review of financial aid processing, personnel responsibilities, and system modifications) and make revisions to workflows to prevent future occurrence of this finding. A review of activity prior to implementation of revised procedures will be conducted, and any exceptions will be documented and corrected.