Finding 966432 (2023-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300901
Organization: Queens University of Charlotte (NC)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: Return calculations for Title IV funds were inaccurate due to improper inclusion of scheduled breaks.
  • Impacted Requirements: Institutions must accurately calculate Title IV aid earned and return funds within 45 days of withdrawal determination.
  • Recommended Follow-Up: Enhance internal controls and procedures for R2T4 calculations to ensure accuracy and compliance.

Finding Text

Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Return of Title IV Funds: 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 aid earned by the student as of the student’s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn. Condition: Students’ return calculations were not accurately prepared due to improper inclusion of institutionally scheduled breaks. Cause: Administrative oversight and insufficient internal controls. Effect or Potential Effect: Over or underpayment of Title IV funds. Questioned Costs: None. Context: For 2 of 4 students tested, the amounts to return were not calculated in accordance with the requirements. Identification as a Repeat Finding: No similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures and internal controls over the preparation and review of R2T4 calculations to ensure that return amounts are accurately determined. Views of Responsible Officials: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. The break days for fall 2022 were not properly calculated to include a break of 5 days. We will develop and implement a process within Student Financial Services to audit all R2T4 records for accuracy, completeness, and consistency regarding length of academic periods.

Categories

Student Financial Aid Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $12.38M
84.063 Federal Pell Grant Program $1.48M
84.425 Education Stabilization Fund $1.00M
84.007 Federal Supplemental Educational Opportunity Grants $150,874
84.033 Federal Work-Study Program $130,740
84.038 Federal Perkins Loan Program $0