Audit 387335

Finding 2025-002 Program Affected Assistance Listing - 84.007, 84.033, 84.063, 84.268 U.S. Department of Education - Direct Award Student Financial Aid Cluster Award Year July 1, 2024 through June 30, 2025 Criteria Per 34 CFR section 668.22(j), an institution must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution’s determination that the student withdrew. Condition and Context During testing of returns of Title IV funds (R2T4), we noted the following: At Eastern Maine Community College (EMCC), we selected two 2024 fall semester students for R2T4 compliance testing from a total poulation of 98 students across all of the 2025 academic year. During our testing, we noted one of the 2024 fall semester student selected had a R2T4 processed after the required 45-day timeframe from the date of determination to when the U.S. Department of Education's Common Origination and Disbursement (COD) system was notified. This was due to conversion from the PowerFAIDS student information system (SIS) to the Anthology SIS originally set to occur effective January 1, 2025. A decision was made to delay the conversion date to April 1, 2025 but also required more testing and configuration to be sure there were no more delays. This delay in the conversion from PowerFAIDS to Anthology SIS disrupted the expected sequence of events for processing student aid and, as a result, was submitted to the COD system after the 45-day deadline. Based on discussion with management, it is expected that all 2024 fall semester students at EMCC with R2T4 processed during the conversion period were filed late. At Central Maine Community College (CMCC), we selected four 2025 spring semester students for R2T4 compliance testing from a total poulation of 304 students at CMCC across all of the 2025 academic year. During our testing, we noted three of 2025 spring semester students selected had a R2T4 processed after the required 45-day timeframe from the date of determination to when COD system was notified. This was the result of the conversion from PowerFAIDS to the Anthology SIS in April 2025 which delayed the processing of R2T4 to COD. Based on discussion with management, it is expected that all 2025 spring semester students at CMCC that had a return determination after February 28, 2025, were filed late. Cause and Effect The conditions identified were caused by the transition to a new Anthology SIS that occurred during the year resulting in late submissions to COD. Questioned Costs None noted. Recommendation We recommend the System implement a process in which all refund calculations are reviewed by the appropriate level of management to ensure timely filing to the COD system is occurring. Identification as a Repeat Finding, if Applicable Not applicable. Views of Responsible Officials and Planned Corrective Action Management agrees with the finding. See attached Corrective Action Plan.

Finding 2025-003 Program Affected Assistance Listing - 84.063 U.S. Department of Education - Direct Award Student Financial Aid Cluster Award Year July 1, 2024 through June 30, 2025 Criteria Per Volume 7, Chapter 2 of the Federal Student Aid Handbook, Pell Grant scheduled awards are based on information provided on the Free Application for Federal Student Aid (FAFSA) form, the presence of a valid Student Aid Index (SAI) on the student's FAFSA Submission Summary or Institutional Student Information Record (ISIR), the academic year structure, and the Pell Grant cost of attendance for a full-time student for a full academic year. Condition and Context During testing of Pell Grant disbursements, we noted the following: At CMCC, we noted the recalculation of one 2025 spring semester Pell Grant disbursement differed from the actual Pell Grant disbursment made resulting in an increase of $295 to the student account. After discovering the error and discussing with CMCC, the Pell Grant disbursement was adjusted for the additional $295 and reported to the COD system. Our testing included a total of 11 CMCC students with Pell Grant disbursements totalling $64,197. The one recalculation exception discovered resulted in a deviation rate of 0.46%. At York County Community College (YCCC), we noted the recalculation of one 2025 spring semester Pell Grant disbursement differed from the actual Pell Grant disbursement made resulting in a reduction of $628 to the student account. After discovering the error and discussing with YCCC, the Pell Grant disbursement was adjusted for the reduction of $628 and reported to the COD system. Our testing included a total of four YCCC students with Pell Grant disbursements totalling $13,358. The one recalculation exception discovered resulted in a deviation rate of 4.70%. Cause and Effect The conditions identified were caused by the transition to a new SIS that occurred during the year resulting in improper Pell Grant disbursements. Questioned Costs Based on the deviation rates previously identified, likely questioned costs at CMCC and YCCC would be $41,472 and $123,051, respectively, of the total Pell Grant Program funds disbursed at the respective campuses. Recommendation We recommend the System implement a process in which all disbursement calculations are checked for accuracy in the SIS. Identification as a Repeat Finding, if Applicable Not applicable. Views of Responsible Officials and Planned Corrective Action Management agrees with the finding. See attached Corrective Action Plan.

Finding 2025-004 Program Affected Assistance Listing - 84.268 U.S. Department of Education - Direct Award Student Financial Aid Cluster Award Year July 1, 2024 through June 30, 2025 Criteria Per 34 CFR 668.165(a)(6), students that receive a direct loan disbursement, must receive notification of the right to cancel their loan. This notification must be sent no earlier than 30 days before or no later than 30 days after the student account is credited. Condition and Context During testing of Direct Loan disbursements, we noted at Kennebec Valley Community College (KVCC) and YCCC, the students that received Direct Loans were not notified within 30 days of the funds being credited to their student account. This was due to the conversion from PowerFAIDS to Anthology SIS as the financial aid office wanted to be sure the correct disbursement was made resulting in an oversight on the notification email not being sent out timely. During our testing, we did not identify any exceptions related to the calculation of need for student aid related to any of the students at KVCC and YCCC selected for testing. Based on discussion with management, it is expected all students at KVCC and YCCC with Direct Loan disbursements were not notified of their right to cancel their loan. Cause and Effect The conditions identified were caused by the transition to a new SIS that occurred during the year resulting in missed notifications to students on the right to cancel their Direct Loans. Questioned Costs None noted. Recommendation We recommend the System implement a process in which all Direct Loan disbursements receive notification within the 30-day window. Identification as a Repeat Finding, if Applicable Not applicable. Views of Responsible Officials and Planned Corrective Action Management agrees with the finding. See attached Corrective Action Plan.