Audit 383173

Criteria or Specific Requirement: In accordance with 34 CFR 668.22(j), An institution that is not required to take attendance must determine the withdrawal date for a student who withdraws without providing notification to the institution no later than 30 days after the end of the earlier of the (1) payment period or period of enrollment, (2) academic year in which the student withdrew, or (3) educational program from which the student withdrew. Condition / Context: During our audit procedures, we noted that 20 out of 25 selections had forms that were completed after the end of the fall term, outside of the 30-day limit. Additionally, all forms appeared to have used the same drop date, regardless of the student’s actual drop date determination. Questioned Costs: None. Cause: Inadequate controls over the R2T4 process, resulting from turnover in the financial aid office. Effect: A lack of internal controls can result in noncompliance with provisions of the various programs within the Student Financial Assistance Cluster. Repeat Finding: No. Recommendation: We recommend the Colleges reinforce their review processes related to student drops and review all activity level controls to ensure compliance with the various requirements of the Student Financial Assistance Cluster. Additionally, when there is turnover, there should be adequate training within the department to ensure that another member of the team is available to meet the applicable compliance requirements.