Finding 964261 (2023-004)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-03-28
Audit: 299868
Organization: Hodges University, Inc. (FL)

AI Summary

  • Core Issue: The University used an incorrect withdrawal date in the Return to Title IV (R2T4) calculation, leading to errors in financial aid disbursement.
  • Impacted Requirements: Compliance with 34 CFR 668.22(e)(1) regarding accurate calculation of earned Title IV assistance.
  • Recommended Follow-Up: Review and update policies and procedures to ensure accurate R2T4 calculations moving forward.

Finding Text

2023–004 Return to Title IV (R2T4) Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster CFDA Number: 84.063 – Federal Pell Grant Program Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance (Other Matters) Criteria or specific requirement: According to 34 CFR 668.22(e)(1) The amount of title IV grant or loan assistance that is earned by the student is calculated by— (i) Determining the percentage of title IV grant or loan assistance that has been earned by the student, as described in paragraph (e)(2) of this section; and (ii) Applying this percentage to the total amount of title IV grant or loan assistance that was disbursed (and that could have been disbursed, as defined in paragraph (l)(1) of this section) to the student, or on the student's behalf, for the payment period or period of enrollment as of the student's withdrawal date. Condition: During our testing we noted one instance where the University used the incorrect withdrawal date in the R2T4 calculation. Questioned costs: Known questioned costs totaling $27, likely questioned costs totaling $91. Context: In our sample of 13 students, we identified 1 student where the wrong withdrawal date was used, resulting in a $27 error in the R2T4 calculation. Cause: The University’s policies and procedures did not ensure that the correct withdrawal date was used in the calculation. Effect: An incorrect amount was returned to the Department of Education. Repeat Finding: No. Recommendation: We recommend that the University review its policies and procedures to ensure R2T4 calculations are performed accurately. Views of responsible officials: See Corrective Action Plan prepared by the University.

Categories

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 387815 2023-002
    Material Weakness Repeat
  • 387816 2023-003
    Significant Deficiency Repeat
  • 387817 2023-003
    Significant Deficiency Repeat
  • 387818 2023-003
    Significant Deficiency Repeat
  • 387819 2023-004
    Significant Deficiency
  • 387820 2023-005
    Significant Deficiency
  • 387821 2023-005
    Significant Deficiency
  • 964257 2023-002
    Material Weakness Repeat
  • 964258 2023-003
    Significant Deficiency Repeat
  • 964259 2023-003
    Significant Deficiency Repeat
  • 964260 2023-003
    Significant Deficiency Repeat
  • 964262 2023-005
    Significant Deficiency
  • 964263 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.96M
84.063 Federal Pell Grant Program $1.86M
84.007 Federal Supplemental Educational Opportunity Grants $104,800