Audit 298342

FY End
2023-06-30
Total Expended
$9.63M
Findings
20
Programs
8
Organization: Missouri Valley College (MO)
Year: 2023 Accepted: 2024-03-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
385627 2023-001 Significant Deficiency - N
385628 2023-002 Significant Deficiency - N
385629 2023-001 Significant Deficiency - N
385630 2023-002 Significant Deficiency - N
385631 2023-001 Significant Deficiency - N
385632 2023-002 Significant Deficiency - N
385633 2023-001 Significant Deficiency - N
385634 2023-002 Significant Deficiency - N
385635 2023-001 Significant Deficiency - N
385636 2023-002 Significant Deficiency - N
962069 2023-001 Significant Deficiency - N
962070 2023-002 Significant Deficiency - N
962071 2023-001 Significant Deficiency - N
962072 2023-002 Significant Deficiency - N
962073 2023-001 Significant Deficiency - N
962074 2023-002 Significant Deficiency - N
962075 2023-001 Significant Deficiency - N
962076 2023-002 Significant Deficiency - N
962077 2023-001 Significant Deficiency - N
962078 2023-002 Significant Deficiency - N

Contacts

Name Title Type
N68FV9Y2RHN4 Richard Gozia Auditee
6608314247 Amanda Schultz Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Missouri Valley College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U.S. generally accepted accounting principles they are not reported in the College’s Statement of Activities as expenses or financial aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the College for the year and are not reportable as transactions in the College’s financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the financial statements. De Minimis Rate Used: Y Rate Explanation: The College has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The schedule of expenditures of federal awards includes only the current year federal grant activity of Missouri Valley College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U.S. generally accepted accounting principles they are not reported in the College’s Statement of Activities as expenses or financial aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the College for the year and are not reportable as transactions in the College’s financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the financial statements.
Title: INDIRECT COST RATE Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Missouri Valley College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U.S. generally accepted accounting principles they are not reported in the College’s Statement of Activities as expenses or financial aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the College for the year and are not reportable as transactions in the College’s financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the financial statements. De Minimis Rate Used: Y Rate Explanation: The College has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The College has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: LOANS OUTSTANDING Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Missouri Valley College (the College) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U.S. generally accepted accounting principles they are not reported in the College’s Statement of Activities as expenses or financial aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the College for the year and are not reportable as transactions in the College’s financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the financial statements. De Minimis Rate Used: Y Rate Explanation: The College has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The College is in the process of liquidating its Perkins Loan Program portfolio. The College had the following loan balance outstanding as of June 30, 2023: Federal Perkins Loan Program - Assistance Listing Number 84.038 - Amount Outstanding - $0

Finding Details

Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-002: Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found two (2) instances where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found two (2) instances where the Title IV funds were not returned timely. Cause of Condition: The College did not follow its policies and procedures for calculating the number of days in the semester and for returning Title IV funds within the required timeline. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-002: Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found two (2) instances where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found two (2) instances where the Title IV funds were not returned timely. Cause of Condition: The College did not follow its policies and procedures for calculating the number of days in the semester and for returning Title IV funds within the required timeline. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-002: Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found two (2) instances where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found two (2) instances where the Title IV funds were not returned timely. Cause of Condition: The College did not follow its policies and procedures for calculating the number of days in the semester and for returning Title IV funds within the required timeline. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-002: Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found two (2) instances where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found two (2) instances where the Title IV funds were not returned timely. Cause of Condition: The College did not follow its policies and procedures for calculating the number of days in the semester and for returning Title IV funds within the required timeline. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-002: Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found two (2) instances where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found two (2) instances where the Title IV funds were not returned timely. Cause of Condition: The College did not follow its policies and procedures for calculating the number of days in the semester and for returning Title IV funds within the required timeline. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-002: Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found two (2) instances where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found two (2) instances where the Title IV funds were not returned timely. Cause of Condition: The College did not follow its policies and procedures for calculating the number of days in the semester and for returning Title IV funds within the required timeline. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-002: Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found two (2) instances where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found two (2) instances where the Title IV funds were not returned timely. Cause of Condition: The College did not follow its policies and procedures for calculating the number of days in the semester and for returning Title IV funds within the required timeline. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-002: Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found two (2) instances where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found two (2) instances where the Title IV funds were not returned timely. Cause of Condition: The College did not follow its policies and procedures for calculating the number of days in the semester and for returning Title IV funds within the required timeline. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-002: Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found two (2) instances where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found two (2) instances where the Title IV funds were not returned timely. Cause of Condition: The College did not follow its policies and procedures for calculating the number of days in the semester and for returning Title IV funds within the required timeline. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated. Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan. Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.
Finding 2023-002: Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found six (6) instances where the calculation of the students’ percentages of completion during the payment period were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the payment period. We also found two (2) instances where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, the number of days in the payment period should exclude any breaks of at least five (5) consecutive days where no coursework was taking place. Also in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found six (6) instances where the calculation of the students’ percentages of completion during the semester were computed incorrectly due to breaks of at least five (5) consecutive days being incorrectly computed in the calculation of the number of days in the semester. We also found two (2) instances where the Title IV funds were not returned timely. Cause of Condition: The College did not follow its policies and procedures for calculating the number of days in the semester and for returning Title IV funds within the required timeline. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.