Andrews University

Information on the Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, 84.063; Federal Direct Student Loan Program, 84.268. Program Year – May 1, 2024 – April 30, 2025 Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting – Under the Pell grant and loan programs, colleges must complete and return within 30 days the Enrollment Reporting roster file. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date and submit the changes electronically through the batch method or the NSLDS web site. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. Unless the school expects to complete its next roster within 60 days, the University must notify the lender or the guaranty agency within 30 days, if it discovers that a student who received a loan either did not enroll or ceased to be enrolled on at least a half-time basis. (Pell, 34 CFR Section 690.83(b)(2); Direct Loan, 34 CFR Section 685.309(2)(i)). Condition – Notification of the student status change (graduated, withdrew, less than half-time) did not reach the NSLDS within the required timeframe. Questioned Costs – None – nonmonetary finding Context – Out of a sample of 19 students from a population of 182 students who had changes in status during the year, NSLDS was not provided timely notification for five of the student status changes reviewed. Our sample was not, and was not intended to be, statistically valid. Cause – Information between the University and NSLDS was not updated timely. This could have been a result of the remittance schedule between the Clearinghouse and NSLDS not being properly established to allow for timely remittance. Effect – The status change was ultimately reported correctly to NSLDS but was not performed timely. Identification as a Repeat Finding – N/A Recommendation – We recommend the University ensure the remittance schedule is properly established to allow for timely remittance.

Views of Responsible Officials and Planned Corrective Actions – The National Student Clearinghouse (NSC) Graduation and Enrollment Change Status’ submission calendar will be updated to reflect the necessary reporting timeline. The report will be completed after verification of graduation requirements and credentialing are completed by the Academic Record’s Department. Additional training will be provided to all members within the department to ensure timely submissions.

Information on the Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, 84.063; Federal Work-Study Program, 84.033; Federal Supplemental Educational Opportunity Grant Program, 84.007; Federal Direct Student Loan Program. Program Year – May 1, 2024 – April 30, 2025 Criteria or Specific Requirement – Special Tests 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section as soon as possible but no later than 45 days after the date of the institution’s determination that the student withdrew (34 CFR Sections 668.22(a)(1)-(3)). Condition – The return of unearned Title IV aid did not occur within the required timeframe. Questioned Costs – None – nonmonetary finding Context – Out of a sample of four students from a population of 38 students who withdrew during the year, unearned Title IV aid was not returned timely for two of the student calculations reviewed. Our sample was not, and was not intended to be, statistically valid. Cause – Student withdrawal information between the University and the student was not completed under the University’s standard process, which resulted in delays in the exit process and the return calculation performed. Effect – The unearned Title IV aid was ultimately calculated and returned correctly to the Department of Education, but return was not performed timely. Identification as a Repeat Finding – N/A Recommendation – We recommend the University ensure the process to return Title IV aid is properly followed to allow for the timely return of unearned Title IV aid.

Views of Responsible Officials and Planned Corrective Actions – To address the identified issues related to student withdrawal processing and Return to Title IV (R2T4) calculations, the University will implement the following steps: 1. Process Review and Collaboration: A joint meeting will be held with key personnel from Academic Records and Financial Aid to review current withdrawal procedures, including the use of drop and exit forms. Emphasis will be placed on ensuring that appropriate withdrawal codes are consistently applied to support accurate and automated R2T4 processing. The goal is to establish a unified and clearly documented process that meets the operational needs of both departments. 2. Systematic Scheduling and Monitoring: Withdrawal-related tasks, including the running of BANNER return reports and other custom reports developed by the IT team, will be scheduled at regular intervals to ensure timely identification and processing of student withdrawals. These tasks will be integrated into departmental calendars, with scheduled dates already entered for the Fall 2025 and Spring 2026 semesters. 3. Ongoing Oversight and Communication: A communication protocol will be developed to ensure that all relevant documentation, including drop forms, is consistently shared between departments. This will help prevent delays in processing and ensure compliance with federal financial aid regulations.

Federal Program ? Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, CFDA 84.063; Federal Work-Study Program, CFDA 84.033; Federal Supplemental Educational Opportunity Grant Program, CFDA 84.007; Federal Direct Student Loan Program, CFDA 84.268; and Federal Perkins Loan Program, CFDA 84.038 Program Year ? May 1, 2019 ? April 30, 2020 Criteria or Specific Requirement ? Special Tests 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment (34 CFR Sections 668.22(a)(1)-(3)). Condition ? The earned percentage, based upon the enrollment period and the withdrawal date determined and the amount of aid to return, was calculated incorrectly. The University returned the incorrect amount of funds to the Department of Education because of the error in the calculation. Questioned Costs ? $1,987, Federal Direct Loans, CFDA 84.268 Context ? Of a sample of four return of funds tested from a population of 31 performed during the examination period, three return of funds calculations were not performed correctly. This resulted in an incorrect amount of funds being returned to the Department of Education for three of those four students. Our sample was not, and was not intended to be, statistically valid. Cause ? The incorrect withdrawal date was used for the calculation for two students and the University inadvertently returned too much funds for one student. Effect ? The University returned the incorrect amount of funds to the Department of Education. Identification as a Repeat Finding ? N/A Recommendation ? We recommend the University be diligent in performing secondary reviews to ensure the calculations are performed correctly.

Views of Responsible Officials and Planned Corrective Actions ? The Office of Financial Aid will continue to collect documentation of all withdrawn students during each term from the Office of the Registrar to verify dates appearing in automated return of funds calculations performed by the third-party software system and used by our institution, as well as perform a secondary review to ensure the calculations are performed correctly. The Office of Financial Aid reviewed the two return of Title IV funds calculations that were incorrect due to the withdrawal date used and have been re-calculated and Title IV funds have been adjusted accordingly. The one return of Title IV funds calculation where too much was inadvertently returned has been corrected with an adjustment to the appropriate fund.

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