[Unabel]

Year ended June 30, 2013

Section III - Federal Award Findings and Questioned Costs (under Section .505(d)(3) of OMB Circular A-133):

Finding 2013-003:

Federal Program: U.S. Department of Education Federal Pell Grant Program, CFDA 84.063 Federal Direct Student Loans Program, CFDA 84.268

During the audit, we noted one student who withdrew from all classes at the beginning of the semester but the financial aid office was not notified and funds were not returned in a timely manner. Also during our testing of Return of Title IV Funds, we noted the University did not return unearned Title IV Funds within 45 days for three out of the forty students tested.

Per the provisions of CFR 34 §668.173 an institution must return unearned Title IV Funds timely, which is no later than 45 days after the date the University becomes aware of the student's withdrawal.

There was one oversight by the Registrar's office in notifying the Financial Aid office that a student withdrawing from all classes and lack of management oversight and internal controls in place to ensure that unearned Title IV Funds are returned in a timely manner. The internal controls related to communication between the Financial Aid office and the Registrar's offices are not adequate to ensure that all student withdrawals are communicated timely.

The provisions of CFR 34 §668.173 were not followed, therefore unearned Title IV Funds were not returned in a timely manner.

We recommend that the University review its current procedures related to the timely return of unearned Title IV Funds and make the necessary changes to ensure that these calculations are being completed in a timely manner.

We concur. We have reviewed and redesigned our processes to efficiently facilitate the processing of returns to Title IV aid programs. Internal practices have been updated to ensure that R2T4 processing is properly monitored and managed at all times by following the established schedule for R2T4 processing.

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