Finding 946563 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-02-22
Audit: 291636
Organization: Arcadia University (PA)

AI Summary

  • Core Issue: The University incorrectly refunded Title IV funds for 3 out of 12 students who withdrew before completing 60% of their enrollment period.
  • Impacted Requirements: The University failed to comply with 34 CFR 668.22, which mandates timely and accurate refunds of unearned Title IV funds.
  • Recommended Follow-Up: Implement a manual review process by a different staff member for all Title IV calculations to ensure accuracy and compliance moving forward.

Finding Text

Federal Programs: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable ALN Number: 84.007, 84.063, 84.268 Federal Award Identification Number: P007A223541, P063P222079, P268K232079 Federal Award Year: May 31, 2023 Criteria: 34 CFR 668.22 requires 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 in accordance with Federal regulations and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition/Context: The University had 20 students receiving federal student financial aid withdraw, of those students 12 withdrew before 60% complete and would require a return of Title IV funds. In the population of 12 students withdrawn before 60% complete, the calculation of the return of Title IV was completed correctly, however for 3 students the incorrect amount was refunded to the Department of Education. For the 3 students with the incorrect amount refunded, 1 refund was not returned within 45 days. The sample was not considered statistically valid. Cause: The amounts refunded to the Department of Education were made based on the incorrect fields in the return of Title IV calculation. These errors were not identified and corrected in the University personnel's review of the refunds made to the Department of Education. Effect: The amounts refunded to the Department of Education were incorrect. Questioned Costs: Questioned costs of $5,718 were noted during testing. Recommendation: It is recommended that University personnel review the Return of Title IV calculations and agree final amounts for refund to the refunds made to the Department of Education. A manual review should also be performed by someone other than the person who enters the information into the software in order to verify the accuracy of the calculations and the amounts refunded. Management’s Response: The University agrees with the finding and has returned the funds for the student tested. In addition, the University reviewed every Return of Title IV Aid calculation performed and the amounts refunded for the award year ended May 31, 2023 and has corrected any additional errors discovered. The University has provided additional training on this topic to financial aid staff, has increased the number of staff members who will monitor the accuracy of the work and has modified its procedures by developing a tracking system to add another level of review and accountability. This will enable the team to be sure the refund calculations are performed correctly for all students and consistently applied.

Categories

Questioned Costs Student Financial Aid Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 370120 2023-001
    Significant Deficiency
  • 370121 2023-001
    Significant Deficiency
  • 370122 2023-001
    Significant Deficiency
  • 946562 2023-001
    Significant Deficiency
  • 946564 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $32.11M
84.063 Federal Pell Grant Program $2.76M
47.076 Education and Human Resources $431,133
84.031 Higher Education_institutional Aid $388,642
84.038 Federal Perkins Loan $367,780
84.033 Federal Work-Study Program $322,835
84.007 Federal Supplemental Educational Opportunity Grants $193,518
98.001 Usaid Foreign Assistance for Programs Overseas $80,926
93.575 Child Care and Development Block Grant $60,905
84.425 Education Stabilization Fund $55,769
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $37,561
93.959 Block Grants for Prevention and Treatment of Substance Abuse $28,785
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $11,457
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $9,903
93.865 Child Health and Human Development Extramural Research $2,677
94.006 Americorps $958