Finding 960554 (2023-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-03-25
Audit: 297264
Organization: Concordia University, St. Paul (MN)

AI Summary

  • Core Issue: The University has a significant weakness in internal controls regarding the Return to Title IV (R2T4) calculations, leading to incorrect fund returns for students who withdrew.
  • Impacted Requirements: Compliance with 34 CFR 668.22 is not met, as the University failed to properly calculate and return Title IV funds for 14 out of 60 students tested.
  • Recommended Follow-Up: Establish a formal review process for R2T4 calculations to ensure accurate compliance and prevent future errors.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007 – Federal Supplemental Education Opportunity Grants 84.033 – Federal Work Study Program 84.038 – Federal Perkins Loans 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans 84.379 – Teacher Education Assistance for College and Higher Education Grants Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2022 to June 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations 34 CFR 668.22, states that when students withdraw from a school, institutions are required to determine earned and unearned portions of Title IV aid as of the date the student ceased attendance based on the amount of time the student spent in attendance. Up through the 60% point in each payment period or period of enrollment, a pro rate schedule is used to determine the amount of Title IV funds the students earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period. Condition: During our testing it was noted that: 1) There was no review process in place for R2T4 calculations. 2) 14 of 60 students tested did not returned funds within 45 days. 3) 5 out of 60 students tested resulted in $4,974 of funds that should have been returned to the students based on individual students’ R2T4 calculation but was not. Questioned Costs: $4,974 Context: The University had instances where students left the school but the University incorrectly performed a R2T4 calculation and under returned federal funds. Cause: The University has had turnover and there was no oversight over the withdrawal process and calculation of R2T4 which includes review of the R2T4 calculations. Effect: There are questioned costs of $4,974. Additionally, with no review in place, there could be potential for additional R2T4 amounts not being calculated appropriately. Repeat Finding: Yes, Finding 2022-001. Auditors’ Recommendation We recommend that the University implement a review process as it relates to R2T4 calculations. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Categories

Questioned Costs Student Financial Aid Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 384112 2023-001
    Material Weakness Repeat
  • 384113 2023-001
    Material Weakness Repeat
  • 384114 2023-001
    Material Weakness Repeat
  • 384115 2023-001
    Material Weakness Repeat
  • 384116 2023-001
    Material Weakness Repeat
  • 384117 2023-001
    Material Weakness Repeat
  • 384118 2023-002
    Significant Deficiency Repeat
  • 384119 2023-002
    Significant Deficiency Repeat
  • 384120 2023-002
    Significant Deficiency Repeat
  • 384121 2023-002
    Significant Deficiency Repeat
  • 384122 2023-002
    Significant Deficiency Repeat
  • 384123 2023-002
    Significant Deficiency Repeat
  • 384124 2023-003
    Significant Deficiency
  • 384125 2023-003
    Significant Deficiency
  • 384126 2023-003
    Significant Deficiency
  • 384127 2023-004
    Significant Deficiency
  • 384128 2023-004
    Significant Deficiency
  • 384129 2023-004
    Significant Deficiency
  • 384130 2023-004
    Significant Deficiency
  • 384131 2023-004
    Significant Deficiency
  • 384132 2023-004
    Significant Deficiency
  • 384133 2023-005
    Significant Deficiency
  • 384134 2023-005
    Significant Deficiency
  • 384135 2023-005
    Significant Deficiency
  • 384136 2023-005
    Significant Deficiency
  • 384137 2023-005
    Significant Deficiency
  • 384138 2023-005
    Significant Deficiency
  • 384139 2023-006
    Significant Deficiency
  • 960555 2023-001
    Material Weakness Repeat
  • 960556 2023-001
    Material Weakness Repeat
  • 960557 2023-001
    Material Weakness Repeat
  • 960558 2023-001
    Material Weakness Repeat
  • 960559 2023-001
    Material Weakness Repeat
  • 960560 2023-002
    Significant Deficiency Repeat
  • 960561 2023-002
    Significant Deficiency Repeat
  • 960562 2023-002
    Significant Deficiency Repeat
  • 960563 2023-002
    Significant Deficiency Repeat
  • 960564 2023-002
    Significant Deficiency Repeat
  • 960565 2023-002
    Significant Deficiency Repeat
  • 960566 2023-003
    Significant Deficiency
  • 960567 2023-003
    Significant Deficiency
  • 960568 2023-003
    Significant Deficiency
  • 960569 2023-004
    Significant Deficiency
  • 960570 2023-004
    Significant Deficiency
  • 960571 2023-004
    Significant Deficiency
  • 960572 2023-004
    Significant Deficiency
  • 960573 2023-004
    Significant Deficiency
  • 960574 2023-004
    Significant Deficiency
  • 960575 2023-005
    Significant Deficiency
  • 960576 2023-005
    Significant Deficiency
  • 960577 2023-005
    Significant Deficiency
  • 960578 2023-005
    Significant Deficiency
  • 960579 2023-005
    Significant Deficiency
  • 960580 2023-005
    Significant Deficiency
  • 960581 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $35.20M
84.063 Federal Pell Grant Program $5.30M
84.038 Federal Perkins Loans Outstanding, Beginning of Year $555,118
84.007 Federal Supplemental Educational Opportunity Grants $308,750
84.033 Federal Work-Study Program $133,000
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $100,919
84.425 Education Stabilization Fund $60,961