Finding Text
Finding 2023-001:
Student Financial Assistance Cluster – Assistance Listing (AL) #84.007 Federal Supplemental Educational Opportunity Grants; AL #84.033 Federal Work-Study Program; AL #84.038 Federal Perkins Loan Program; AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans.
Criteria:
The University is required to identify official and unofficial withdrawals and perform Return of Title IV calculations (calculations). Pursuant to regulations established by the U.S. Department of Education (DOE), the University has 30 days after the end of the semester to determine that a student unofficially withdrew. The University then has 45 days from the date it determines the student withdrew to perform the calculations and return the funds to DOE (34 CFR § 668.22(j)).
Condition:
Our audit procedures identified that the University did not follow their procedures to identify certain withdrawals and return funds to DOE timely. Twenty-nine withdrawals (twelve from Fall 2022, seventeen from Spring 2023) did not have funds returned to DOE timely. Of these withdrawals, four unofficial withdrawals were not identified within 30 days after the end of the semester.
Cause:
Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying withdrawals and returning funds to DOE to go unfollowed.
Effect:
The University did not perform the calculations, return the required funds, and/or complete the required reporting within the required timeframes.
Questioned Costs:
$83,419, the total amount of funds returned and $9,582, the total amount of post withdrawal disbursements.
Auditors’ Recommendation:
The University should provide necessary training as they experience significant turnover to ensure procedures are being followed. These procedures include steps to properly identify all official and unofficial withdrawals and accurately perform calculations within the required timeframes.
Views of Responsible Officials:
The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward. Additionally, the University has reviewed all procedures for identifying official and unofficial withdrawals, adding a new requirement for all faculty members to include a last date of attendance for all unsatisfactory grades input into our student information system. Additionally, job duties have been reallocated to ensure calculations on official and unofficial withdrawals and exit counseling communications are done on a timely basis going forward.