Audit 345900

2024-001 – Incorrect Calculation of Title IV Funds Refunds (Significant Deficiency) Department of Education, SFA Cluster; Special Tests and Provisions Criteria: The total number of calendar days in a payment period or period of enrollment includes all days within the period that a student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment and the number of calendar days completed in that period. Condition: From a population of 208 students that officially or unofficially withdrew from a payment period, we tested 22 and noted that ten students required refund calculations. From these calculations we noted the following: 1) Thanksgiving break of five days was deducted incorrectly from total days in three calculations. 2) Spring break of nine days was deducted incorrectly as five days in one calculation. Cause: The College’s spring break was scheduled for the period February 26, 2024 through March 1, 2024, a total break of nine days for traditional students with no online classes. One traditional student with no online classes was tested and the break was incorrectly deducted as five days instead of nine. Three on-line students were tested, and a break of five days was deducted from total days, however, online classes were in progress during spring break and no break days should have been deducted. Effect: The refund was incorrect for four students that had refund calculations prepared. Repeat Finding from a Prior Year: Repeat of 2023-004. Recommendation: We recommend the College put procedures in place for accurate preparation and calculation of Title IV refunds. Management Response: We concur with this finding. The Office of Financial Aid conducted an internal review of all Return of Title IV (R2T4) calculations for the 2023-2024 academic year. Two students within the audit sample had been corrected prior to the audit; however, their disbursements were not updated in the Common Origination and Disbursement (COD) system at the time of the request. To prevent future discrepancies, we have collaborated with PowerFAIDS to ensure that the appropriate number of days associated with Thanksgiving and Spring Break are accurately assigned to students. Additionally, each financial aid counselor will complete the R2T4 calculation within three days of receiving a withdrawal notification email. Upon completion, the calculation will undergo a review by the Associate and/or Senior Director of Financial Aid to verify accuracy.

2024-002 – Reporting Student Withdrawal Date in the National Student Loan Data System (NSLDS) (Significant Deficiency) Department of Education, SFA Cluster; Special Tests and Provisions Criteria: The College is responsible for submitting timely, accurate and complete responses to Enrollment Reporting roster files and for maintaining proper documentation in accordance with 34 CFR Section 685.309(a)(2). Condition: From a population of 208 students that withdrew officially or unofficially during the fiscal year, we tested 22 and noted that withdrawal dates were submitted untimely for all 22 students and the incorrect date was reported for six students. Cause: NSLDS Enrollment Reporting was submitted more than 60 days after the date of determination for all 22 students and the incorrect withdrawal date was reported for six students. Effect: The Department of Education was unaware of the student withdrawals; thus, the Department could not properly service the student’s loans. The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by institutions. Repeat Finding from Prior Year: Repeat of 2023-005. Recommendation: We recommend that a review process be put in place to ensure complete and accurate NSLDS reporting of student withdrawal dates. Management Response: We concur with this finding. The Office of the Registrar reports the withdrawal date via Clearing House. However, the withdrawal date is overridden by any subsequent enrollment updates. Moving forward, the Office of Financial Aid will ensure that withdrawal dates for R2T4 calculations are accurately reported. The updated enrollment information will be saved in the student’s electronic file to maintain proper documentation and compliance.

2024-001 – Incorrect Calculation of Title IV Funds Refunds (Significant Deficiency) Department of Education, SFA Cluster; Special Tests and Provisions Criteria: The total number of calendar days in a payment period or period of enrollment includes all days within the period that a student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment and the number of calendar days completed in that period. Condition: From a population of 208 students that officially or unofficially withdrew from a payment period, we tested 22 and noted that ten students required refund calculations. From these calculations we noted the following: 1) Thanksgiving break of five days was deducted incorrectly from total days in three calculations. 2) Spring break of nine days was deducted incorrectly as five days in one calculation. Cause: The College’s spring break was scheduled for the period February 26, 2024 through March 1, 2024, a total break of nine days for traditional students with no online classes. One traditional student with no online classes was tested and the break was incorrectly deducted as five days instead of nine. Three on-line students were tested, and a break of five days was deducted from total days, however, online classes were in progress during spring break and no break days should have been deducted. Effect: The refund was incorrect for four students that had refund calculations prepared. Repeat Finding from a Prior Year: Repeat of 2023-004. Recommendation: We recommend the College put procedures in place for accurate preparation and calculation of Title IV refunds. Management Response: We concur with this finding. The Office of Financial Aid conducted an internal review of all Return of Title IV (R2T4) calculations for the 2023-2024 academic year. Two students within the audit sample had been corrected prior to the audit; however, their disbursements were not updated in the Common Origination and Disbursement (COD) system at the time of the request. To prevent future discrepancies, we have collaborated with PowerFAIDS to ensure that the appropriate number of days associated with Thanksgiving and Spring Break are accurately assigned to students. Additionally, each financial aid counselor will complete the R2T4 calculation within three days of receiving a withdrawal notification email. Upon completion, the calculation will undergo a review by the Associate and/or Senior Director of Financial Aid to verify accuracy.

2024-002 – Reporting Student Withdrawal Date in the National Student Loan Data System (NSLDS) (Significant Deficiency) Department of Education, SFA Cluster; Special Tests and Provisions Criteria: The College is responsible for submitting timely, accurate and complete responses to Enrollment Reporting roster files and for maintaining proper documentation in accordance with 34 CFR Section 685.309(a)(2). Condition: From a population of 208 students that withdrew officially or unofficially during the fiscal year, we tested 22 and noted that withdrawal dates were submitted untimely for all 22 students and the incorrect date was reported for six students. Cause: NSLDS Enrollment Reporting was submitted more than 60 days after the date of determination for all 22 students and the incorrect withdrawal date was reported for six students. Effect: The Department of Education was unaware of the student withdrawals; thus, the Department could not properly service the student’s loans. The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by institutions. Repeat Finding from Prior Year: Repeat of 2023-005. Recommendation: We recommend that a review process be put in place to ensure complete and accurate NSLDS reporting of student withdrawal dates. Management Response: We concur with this finding. The Office of the Registrar reports the withdrawal date via Clearing House. However, the withdrawal date is overridden by any subsequent enrollment updates. Moving forward, the Office of Financial Aid will ensure that withdrawal dates for R2T4 calculations are accurately reported. The updated enrollment information will be saved in the student’s electronic file to maintain proper documentation and compliance.