Audit 414426

Finding No. 2026-001 Nonmaterial Noncompliance Identification of the Federal Program: Student Financial Aid Cluster, Assistance Listing #: 84.007, 84.033, 84.063, 84.268 Compliance Requirement: Special Tests and Provisions – Return of Title IV Funds Condition: During testing of Return of Title IV Funds calculations, we noted one student withdrawal for which the College's R2T4 calculation was completed using an incorrect number of semester days. The College subsequently determined that the fall break week should not have been treated as a break in the academic calendar and revised previously completed R2T4 calculations for affected students. One student was inadvertently omitted from the Return to Title IV recalculation process, resulting in a $482 understated amount of Title IV funds required to be returned to the student. Criteria: Institutions participating in the Title IV programs are required to accurately calculate Return of Title IV Funds amounts for students who withdraw and return unearned Title IV funds within the prescribed timeframes. Calculations must be based on the correct number of days in the payment period, less qualified breaks, used to determine the percentage of Title IV aid earned by the student. Cause: The College did not have adequate procedures in place to ensure all affected student files were identified and updated when a determination was made requiring the recalculation of previously completed Return to Title IV computations. Consequently, one student record was inadvertently omitted from the review and correction process. Effect: The College did not comply with federal Return to Title IV requirements, resulting in unearned Title IV funds remaining with the College. After identification through the audit, the College returned the $482 to the impacted student. Recommendation: We recommend the College strengthen its review procedures surrounding R2T4 recalculations when systemic changes or interpretations affect multiple students. Management should implement procedures to verify that all impacted student files are identified, recalculated, and reviewed for accuracy prior to finalizing corrections. Management Response: The College concurs with this finding. Corrective Action Plan: See enclosed management’s corrective action plan.