Audit 374192

Inaccurate and Untimely Returns of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Loans and 84.063 Federal Pell Grants Federal Award Identification #: 2024-2025 Financial Aid Year Condition: When students withdrew unofficially, the College did not always return unearned Title IV aid accurately and/or timely. Criteria: 34 CFR 668.22 Questioned Costs: $1,233 Context: Out of 9 students, 1 student who withdrew during the audit period tested had funds returned late due to misapplication of withdrawal regulations when a student does not begin attendance at least half time due to not beginning attendance in a class they were scheduled to attend. Another student had a correct calculation but the incorrect amount of a post-withdrawal disbursement of Pell resulting in $1,233 to return to the government. One unofficial withdrawal had the incorrect calendar used, and therefore, over returned $24 of federal direct loans. One student had all federal direct loan funds returned, resulting in an over return of $2,945 of loans. These students are in the process of being corrected. Cause: The College had some system notifications in place, but they were not sent timely and accurately to be shared with the third-party servicer, and the director of financial aid was not aware that not all information was being shared correctly. This resulted in misapplications of modular unofficial withdrawal students. Additionally, there was an incorrect calendar set up used for a type of student resulting in an inaccurate return. Effect: Incorrect amount of unearned Title IV funds was returned. Identification as repeat finding, if applicable: not applicable Recommendation: We recommend the College work with the third-party servicer to ensure accurate and timely information is shared to effectively and efficiently process the returns of federal funds. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.