Mid-America Christian University

Student Financial Assistance Cluster, ALN 84.063 Federal Pell Grant Program, ALN 84.268 Federal Direct Student Loans, U.S. Department of Education Program Year 2024–2025 Criteria or Specific Requirement – Special Tests and Provisions – Disbursements to or on Behalf of Students – Credit Balances – 34 CFR Section 668.164(h)(2) Condition – Two students’ Title IV funds credit balances were not refunded within 14 days Cause – Internal controls of the University’s student financial aid operations were not properly designed or effective to ensure refunds of credit balances were disbursed in a timely manner. Effect – The University did not refund credit balances to students timely resulting in the University holding funds without authorization. Questioned Costs – N/A Context – Out of the population of 2,746 student credit balances, a sample of 25 students was selected for testing. Of those 25 students, two students with credit balances were not refunded within the 14 day requirement. Our sample was not, and was not intended to be, statistically valid. Indication as a Repeat Finding – N/A Recommendation – Key operating processes and related internal controls related to refunds of credit balances should be designed and effectively operating to ensure refunds are made within the 14 day requirement. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.

Student Financial Assistance Cluster, ALN 84.063 Federal Pell Grant Program, ALN 84.268 Federal Direct Student Loans, U.S. Department of Education Program Year 2023–2024 Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting – 34 CFR Section 690.83(b)(2) and 685.309 Condition – Two student status effective dates did not agree to that reported to NSLDS. Questioned Costs – N/A Context – Out of the population of 982 student enrollment status changes requiring reporting to NSLDS, a sample of 25 students was selected for testing. Of those 25 students, two student status effective dates did not agree to that reported to NSLDS. Our sample was not, and was not intended to be, statistically valid. Effect – Accurate enrollment reporting is critical for effective management of the Direct Loan program. The collection of enrollment data allows the Department to ensure loan interest subsidies are based on accurate enrollment information, loan repayment dates are accurate, as well as determining eligibility for in-school status, deferment, and grace periods. Cause – Internal controls of the University’s student financial aid operations were not properly designed or effective to ensure complete and accurate student status information was being submitted to NSLDS. Indication as a Repeat Finding – N/A Recommendation – Key operating processes and related internal controls related to student status changes should be designed and effectively operating to ensure complete and accurate student status changes are being submitted. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.

Student Financial Assistance Cluster, ALN 84.063 Federal Pell Grant Program, ALN 84.268 Federal Direct Student Loans, U.S. Department of Education Program Year 2021?2022 Criteria or Specific Requirement ? Special Tests and Provisions: Return of Title IV Funding, 34 CFR Section 668.22 Condition ? The return of four students? Title IV funding was not appropriately applied to the students? accounts and communicated to the students. The return of five students? Title IV funding was not completed timely. Questioned Costs ? $241 ? Computed as the amount of Title IV aid under-refunded. Context ? Out of the population of 294 students that received federal student financial assistance but withdrew or dropped out during the year, a sample of 40 students was selected for testing. Four returns of Title IV calculations were not correctly calculated, which resulted in overpayment to the respective programs of $2,640 and underpayments to the respective programs of $241. Additionally, five students? Title IV funding was not returned within 45 days. Our sample was not, and was not intended to be, statistically valid. Effect ? Four refunds were incorrect, and funds were either over-remitted or underremitted to the Department of Education. Five refunds were not remitted to the Department of Education within 45 days. Cause ? Due to turnover in the student financial aid office, reviews of return of Title IV calculations were not being performed timely or in enough detail. Indication as a Repeat Finding ? N/A Recommendation ? The University should review its procedures for ensuring appropriate dates are entered into Jenzabar for all related return of Title IV calculations and ensure a secondary review is performed of these calculations on a timely basis to ensure the calculations are being performed accurately and in compliance with Department of Education guidelines. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and hired a new Director of Financial Aid in June 2022. Weekly reviews of return of Title IV calculations have been implemented to help eliminate late returns and accuracy issues regarding the return calculations.

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