Audit 43710

FY End
2022-06-30
Total Expended
$21.86M
Findings
8
Programs
26
Organization: San Juan College (NM)
Year: 2022 Accepted: 2023-01-03
Auditor: Cordova CPAS LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
49942 2022-002 Significant Deficiency Yes N
49943 2022-002 Significant Deficiency Yes N
49944 2022-002 Significant Deficiency Yes N
49945 2022-002 Significant Deficiency Yes N
626384 2022-002 Significant Deficiency Yes N
626385 2022-002 Significant Deficiency Yes N
626386 2022-002 Significant Deficiency Yes N
626387 2022-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $7.99M Yes 1
84.268 Federal Direct Student Loans $1.84M Yes 1
84.425 Education Stabilization Fund $1.30M Yes 0
84.033 Federal Work-Study Program $273,817 Yes 1
84.042 Trio_student Support Services $233,260 - 0
59.037 Small Business Development Centers $227,527 - 0
11.307 Economic Adjustment Assistance $213,950 - 0
84.002 Adult Education - Basic Grants to States $208,207 - 0
84.007 Federal Supplemental Educational Opportunity Grants $195,606 Yes 1
84.382 Strengthening Minority-Serving Institutions $137,232 - 0
11.303 Economic Development_technical Assistance $99,347 - 0
93.859 Biomedical Research and Research Training $86,730 - 0
84.066 Trio_educational Opportunity Centers $83,522 - 0
84.335 Child Care Access Means Parents in School $79,670 - 0
17.285 Apprenticeship USA Grants $57,985 - 0
10.175 Farmers Market and Local Food Promotion Program (b) $47,113 - 0
47.076 Education and Human Resources $39,856 - 0
21.008 Low Income Taxpayer Clinics $38,612 - 0
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $32,621 - 0
10.328 National Food Safety Training, Education, Extension, Outreach, and Technical Assistance Competitive Grants Program $18,451 - 0
84.048 Career and Technical Education -- Basic Grants to States $11,401 - 0
47.074 Biological Sciences $10,621 - 0
93.575 Child Care and Development Block Grant $9,872 - 0
10.855 Distance Learning and Telemedicine Loans and Grants $6,617 - 0
10.558 Child and Adult Care Food Program $5,343 - 0
21.006 Tax Counseling for the Elderly $4,399 - 0

Contacts

Name Title Type
R8MXJRCHRVG9 Jeff Parkes Auditee
5055663408 Bobby Cordova Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 2 Basis of PresentationThe accompanying Schedule of Expenditures includes all federal grants to the College which had activityduring FY22. It was prepared on the accrual basis of accounting except $0.31 million in capital purchaseswas included to reflect total federal expenditures. Revenues are recorded for financial reporting when theCollege has met the qualifications for the respective grant. Therefore, some amounts presented in thisSchedule may differ from amounts presented in the financial statements. The information presented is inaccordance with the requirements of the Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (2 CFR Part 200). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. FEDERAL DIRECT STUDENT LOANS (84.268) - Balances outstanding at the end of the audit period were 1843846.
Title: LOANS OUTSTANDING Accounting Policies: Note 2 Basis of PresentationThe accompanying Schedule of Expenditures includes all federal grants to the College which had activityduring FY22. It was prepared on the accrual basis of accounting except $0.31 million in capital purchaseswas included to reflect total federal expenditures. Revenues are recorded for financial reporting when theCollege has met the qualifications for the respective grant. Therefore, some amounts presented in thisSchedule may differ from amounts presented in the financial statements. The information presented is inaccordance with the requirements of the Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (2 CFR Part 200). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Note 3 Loans OutstandingThe College is not a direct participant in federally funded student loan programs that requires tracking theoutstanding balances of student loans. However, individually the College can access the National StudentLoan Data System (nslds.ed.gov) when determining eligibility. Federal Direct Loans (Assistance Listing No.84.268) advances to students in FY22 totaled $1.8 million.

Finding Details

Federal program information: Funding agency: U.S. Department of Education Title: Student Financial Assistance Cluster Assistance Listing number: 84.007, 84.033, 84.063, & 84.268 Award year: July 1, 2021 to June 30, 2022 Compliance Requirement: Special Tests and Provisions Condition: In our testwork over the Return of Title IV funds, we noted the following noncompliance: ? In 3 out of 25 students examined, the College did not return the funds to the Department of Education in the required 45 days after the withdrawal date of the student. ? One student?s calculation of return of funds was incorrect, the amount of funds returned should have been $520 but $887 was returned to the Department of Education. The College did not make complete progress in fiscal year 2022. Criteria: According to 34 CFR 668.173(b), return of Title IV funds are required to be deposited or transferred into the Student Financial Assistance account or electronic fund transfers initiated to the Education Department as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. According to 34 CFR 668.22(g), The institution must return the lesser of (1) the total amount of unearned Title IV assistance to be returned as described above, or (2) an amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of Title IV grant or loan assistance that has not been earned by the student. If, for a non-term program, an institution chooses to calculate the treatment of Title IV assistance on a payment period basis, but the institution charges for a period that is longer than the payment period, ?total institutional charges incurred by the student for the payment period? is the greater of (1) the prorated amount of institutional charges for the longer period, or (2) the amount of Title IV assistance retained for institutional charges as of the student?s withdrawal date. Questioned Costs: None Effect: The College returned Title IV funds to the Department of Education later than the timeframe required by the program requirements and because of one student?s miscalculation of returned funds, the College sent $367 more to the Department of Education than the required amount. Cause: The College was late in sending the returned funds to the Department of Education for a few of our samples examined because the financial aid office was not made aware certain students were no longer attending the College until after the end of the semester. The calculated dates for return of funds are the last date the student attended the College which meant that the College?s staff would not be informed of the withdrawal until after the 45 days was lapsed. All three of these instances had money transferred within 45 days of the semester end. The incorrect calculation of the one student occurred when there was a change in the student?s status of loan funds awarded; the change was not updated appropriately in the College?s system (Colleague), which resulted in the incorrect calculation. Auditor?s Recommendations: We recommend that the College ensure that the professors inform the financial aid office as soon as a student is no longer attending classes so that the College can ensure they send the Return of Title IV funds within the required 45 days and that when calculating the return of funds, the staff review to ensure they have taken into account all changes of the student status. Agency Response: Management agrees with this finding to meet compliance with the 45 day return of Title IV funds. ? Financial Aid is running a weekly report to capture all students that have dropped/withdrawn from classes. At the end of the semester (fall, spring or summer), a report is run to identify withdrawals, failed, or incomplete grades to determine if a return of funds calculation is warranted. This became important with the impact of COVID-19 on students which caused disruptions and difficulty in managing course loads. Financial Aid processes had a built in assumption that failed grades were unearned but, in reviewing and updating our processes most failed grades are actually earned. The return of funds has traditionally been calculated with the assumption the student did not earn the failed grade so the mid-point of the term was used for last date of attendance. Financial Aid is updating processes based on actuals and will continue working with Learning on the most efficient methodology to determine if a student has earned a failed grade or has stopped attending during the semester. ? Financial Aid will generate a weekly report to identify student withdrawals utilizing a new reporting tool being implemented late 2021. With the enhanced reporting tool and changes in methodology and process?s, we fully anticipate the return of funds will be calculated and remitted to the Department of Education within the required time. ? The Financial Aid Office has communicated with the Vice-President of Learning about the necessity for proper reporting by faculty with regards to non-attendance reporting and last date of attendance. ? Timeline: Management has already implemented the corrective actions. ? Mindi Schrum, Sr. Director and/or Greg Gallegos, Assistant Director will oversee the implementation of these.
Federal program information: Funding agency: U.S. Department of Education Title: Student Financial Assistance Cluster Assistance Listing number: 84.007, 84.033, 84.063, & 84.268 Award year: July 1, 2021 to June 30, 2022 Compliance Requirement: Special Tests and Provisions Condition: In our testwork over the Return of Title IV funds, we noted the following noncompliance: ? In 3 out of 25 students examined, the College did not return the funds to the Department of Education in the required 45 days after the withdrawal date of the student. ? One student?s calculation of return of funds was incorrect, the amount of funds returned should have been $520 but $887 was returned to the Department of Education. The College did not make complete progress in fiscal year 2022. Criteria: According to 34 CFR 668.173(b), return of Title IV funds are required to be deposited or transferred into the Student Financial Assistance account or electronic fund transfers initiated to the Education Department as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. According to 34 CFR 668.22(g), The institution must return the lesser of (1) the total amount of unearned Title IV assistance to be returned as described above, or (2) an amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of Title IV grant or loan assistance that has not been earned by the student. If, for a non-term program, an institution chooses to calculate the treatment of Title IV assistance on a payment period basis, but the institution charges for a period that is longer than the payment period, ?total institutional charges incurred by the student for the payment period? is the greater of (1) the prorated amount of institutional charges for the longer period, or (2) the amount of Title IV assistance retained for institutional charges as of the student?s withdrawal date. Questioned Costs: None Effect: The College returned Title IV funds to the Department of Education later than the timeframe required by the program requirements and because of one student?s miscalculation of returned funds, the College sent $367 more to the Department of Education than the required amount. Cause: The College was late in sending the returned funds to the Department of Education for a few of our samples examined because the financial aid office was not made aware certain students were no longer attending the College until after the end of the semester. The calculated dates for return of funds are the last date the student attended the College which meant that the College?s staff would not be informed of the withdrawal until after the 45 days was lapsed. All three of these instances had money transferred within 45 days of the semester end. The incorrect calculation of the one student occurred when there was a change in the student?s status of loan funds awarded; the change was not updated appropriately in the College?s system (Colleague), which resulted in the incorrect calculation. Auditor?s Recommendations: We recommend that the College ensure that the professors inform the financial aid office as soon as a student is no longer attending classes so that the College can ensure they send the Return of Title IV funds within the required 45 days and that when calculating the return of funds, the staff review to ensure they have taken into account all changes of the student status. Agency Response: Management agrees with this finding to meet compliance with the 45 day return of Title IV funds. ? Financial Aid is running a weekly report to capture all students that have dropped/withdrawn from classes. At the end of the semester (fall, spring or summer), a report is run to identify withdrawals, failed, or incomplete grades to determine if a return of funds calculation is warranted. This became important with the impact of COVID-19 on students which caused disruptions and difficulty in managing course loads. Financial Aid processes had a built in assumption that failed grades were unearned but, in reviewing and updating our processes most failed grades are actually earned. The return of funds has traditionally been calculated with the assumption the student did not earn the failed grade so the mid-point of the term was used for last date of attendance. Financial Aid is updating processes based on actuals and will continue working with Learning on the most efficient methodology to determine if a student has earned a failed grade or has stopped attending during the semester. ? Financial Aid will generate a weekly report to identify student withdrawals utilizing a new reporting tool being implemented late 2021. With the enhanced reporting tool and changes in methodology and process?s, we fully anticipate the return of funds will be calculated and remitted to the Department of Education within the required time. ? The Financial Aid Office has communicated with the Vice-President of Learning about the necessity for proper reporting by faculty with regards to non-attendance reporting and last date of attendance. ? Timeline: Management has already implemented the corrective actions. ? Mindi Schrum, Sr. Director and/or Greg Gallegos, Assistant Director will oversee the implementation of these.
Federal program information: Funding agency: U.S. Department of Education Title: Student Financial Assistance Cluster Assistance Listing number: 84.007, 84.033, 84.063, & 84.268 Award year: July 1, 2021 to June 30, 2022 Compliance Requirement: Special Tests and Provisions Condition: In our testwork over the Return of Title IV funds, we noted the following noncompliance: ? In 3 out of 25 students examined, the College did not return the funds to the Department of Education in the required 45 days after the withdrawal date of the student. ? One student?s calculation of return of funds was incorrect, the amount of funds returned should have been $520 but $887 was returned to the Department of Education. The College did not make complete progress in fiscal year 2022. Criteria: According to 34 CFR 668.173(b), return of Title IV funds are required to be deposited or transferred into the Student Financial Assistance account or electronic fund transfers initiated to the Education Department as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. According to 34 CFR 668.22(g), The institution must return the lesser of (1) the total amount of unearned Title IV assistance to be returned as described above, or (2) an amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of Title IV grant or loan assistance that has not been earned by the student. If, for a non-term program, an institution chooses to calculate the treatment of Title IV assistance on a payment period basis, but the institution charges for a period that is longer than the payment period, ?total institutional charges incurred by the student for the payment period? is the greater of (1) the prorated amount of institutional charges for the longer period, or (2) the amount of Title IV assistance retained for institutional charges as of the student?s withdrawal date. Questioned Costs: None Effect: The College returned Title IV funds to the Department of Education later than the timeframe required by the program requirements and because of one student?s miscalculation of returned funds, the College sent $367 more to the Department of Education than the required amount. Cause: The College was late in sending the returned funds to the Department of Education for a few of our samples examined because the financial aid office was not made aware certain students were no longer attending the College until after the end of the semester. The calculated dates for return of funds are the last date the student attended the College which meant that the College?s staff would not be informed of the withdrawal until after the 45 days was lapsed. All three of these instances had money transferred within 45 days of the semester end. The incorrect calculation of the one student occurred when there was a change in the student?s status of loan funds awarded; the change was not updated appropriately in the College?s system (Colleague), which resulted in the incorrect calculation. Auditor?s Recommendations: We recommend that the College ensure that the professors inform the financial aid office as soon as a student is no longer attending classes so that the College can ensure they send the Return of Title IV funds within the required 45 days and that when calculating the return of funds, the staff review to ensure they have taken into account all changes of the student status. Agency Response: Management agrees with this finding to meet compliance with the 45 day return of Title IV funds. ? Financial Aid is running a weekly report to capture all students that have dropped/withdrawn from classes. At the end of the semester (fall, spring or summer), a report is run to identify withdrawals, failed, or incomplete grades to determine if a return of funds calculation is warranted. This became important with the impact of COVID-19 on students which caused disruptions and difficulty in managing course loads. Financial Aid processes had a built in assumption that failed grades were unearned but, in reviewing and updating our processes most failed grades are actually earned. The return of funds has traditionally been calculated with the assumption the student did not earn the failed grade so the mid-point of the term was used for last date of attendance. Financial Aid is updating processes based on actuals and will continue working with Learning on the most efficient methodology to determine if a student has earned a failed grade or has stopped attending during the semester. ? Financial Aid will generate a weekly report to identify student withdrawals utilizing a new reporting tool being implemented late 2021. With the enhanced reporting tool and changes in methodology and process?s, we fully anticipate the return of funds will be calculated and remitted to the Department of Education within the required time. ? The Financial Aid Office has communicated with the Vice-President of Learning about the necessity for proper reporting by faculty with regards to non-attendance reporting and last date of attendance. ? Timeline: Management has already implemented the corrective actions. ? Mindi Schrum, Sr. Director and/or Greg Gallegos, Assistant Director will oversee the implementation of these.
Federal program information: Funding agency: U.S. Department of Education Title: Student Financial Assistance Cluster Assistance Listing number: 84.007, 84.033, 84.063, & 84.268 Award year: July 1, 2021 to June 30, 2022 Compliance Requirement: Special Tests and Provisions Condition: In our testwork over the Return of Title IV funds, we noted the following noncompliance: ? In 3 out of 25 students examined, the College did not return the funds to the Department of Education in the required 45 days after the withdrawal date of the student. ? One student?s calculation of return of funds was incorrect, the amount of funds returned should have been $520 but $887 was returned to the Department of Education. The College did not make complete progress in fiscal year 2022. Criteria: According to 34 CFR 668.173(b), return of Title IV funds are required to be deposited or transferred into the Student Financial Assistance account or electronic fund transfers initiated to the Education Department as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. According to 34 CFR 668.22(g), The institution must return the lesser of (1) the total amount of unearned Title IV assistance to be returned as described above, or (2) an amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of Title IV grant or loan assistance that has not been earned by the student. If, for a non-term program, an institution chooses to calculate the treatment of Title IV assistance on a payment period basis, but the institution charges for a period that is longer than the payment period, ?total institutional charges incurred by the student for the payment period? is the greater of (1) the prorated amount of institutional charges for the longer period, or (2) the amount of Title IV assistance retained for institutional charges as of the student?s withdrawal date. Questioned Costs: None Effect: The College returned Title IV funds to the Department of Education later than the timeframe required by the program requirements and because of one student?s miscalculation of returned funds, the College sent $367 more to the Department of Education than the required amount. Cause: The College was late in sending the returned funds to the Department of Education for a few of our samples examined because the financial aid office was not made aware certain students were no longer attending the College until after the end of the semester. The calculated dates for return of funds are the last date the student attended the College which meant that the College?s staff would not be informed of the withdrawal until after the 45 days was lapsed. All three of these instances had money transferred within 45 days of the semester end. The incorrect calculation of the one student occurred when there was a change in the student?s status of loan funds awarded; the change was not updated appropriately in the College?s system (Colleague), which resulted in the incorrect calculation. Auditor?s Recommendations: We recommend that the College ensure that the professors inform the financial aid office as soon as a student is no longer attending classes so that the College can ensure they send the Return of Title IV funds within the required 45 days and that when calculating the return of funds, the staff review to ensure they have taken into account all changes of the student status. Agency Response: Management agrees with this finding to meet compliance with the 45 day return of Title IV funds. ? Financial Aid is running a weekly report to capture all students that have dropped/withdrawn from classes. At the end of the semester (fall, spring or summer), a report is run to identify withdrawals, failed, or incomplete grades to determine if a return of funds calculation is warranted. This became important with the impact of COVID-19 on students which caused disruptions and difficulty in managing course loads. Financial Aid processes had a built in assumption that failed grades were unearned but, in reviewing and updating our processes most failed grades are actually earned. The return of funds has traditionally been calculated with the assumption the student did not earn the failed grade so the mid-point of the term was used for last date of attendance. Financial Aid is updating processes based on actuals and will continue working with Learning on the most efficient methodology to determine if a student has earned a failed grade or has stopped attending during the semester. ? Financial Aid will generate a weekly report to identify student withdrawals utilizing a new reporting tool being implemented late 2021. With the enhanced reporting tool and changes in methodology and process?s, we fully anticipate the return of funds will be calculated and remitted to the Department of Education within the required time. ? The Financial Aid Office has communicated with the Vice-President of Learning about the necessity for proper reporting by faculty with regards to non-attendance reporting and last date of attendance. ? Timeline: Management has already implemented the corrective actions. ? Mindi Schrum, Sr. Director and/or Greg Gallegos, Assistant Director will oversee the implementation of these.
Federal program information: Funding agency: U.S. Department of Education Title: Student Financial Assistance Cluster Assistance Listing number: 84.007, 84.033, 84.063, & 84.268 Award year: July 1, 2021 to June 30, 2022 Compliance Requirement: Special Tests and Provisions Condition: In our testwork over the Return of Title IV funds, we noted the following noncompliance: ? In 3 out of 25 students examined, the College did not return the funds to the Department of Education in the required 45 days after the withdrawal date of the student. ? One student?s calculation of return of funds was incorrect, the amount of funds returned should have been $520 but $887 was returned to the Department of Education. The College did not make complete progress in fiscal year 2022. Criteria: According to 34 CFR 668.173(b), return of Title IV funds are required to be deposited or transferred into the Student Financial Assistance account or electronic fund transfers initiated to the Education Department as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. According to 34 CFR 668.22(g), The institution must return the lesser of (1) the total amount of unearned Title IV assistance to be returned as described above, or (2) an amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of Title IV grant or loan assistance that has not been earned by the student. If, for a non-term program, an institution chooses to calculate the treatment of Title IV assistance on a payment period basis, but the institution charges for a period that is longer than the payment period, ?total institutional charges incurred by the student for the payment period? is the greater of (1) the prorated amount of institutional charges for the longer period, or (2) the amount of Title IV assistance retained for institutional charges as of the student?s withdrawal date. Questioned Costs: None Effect: The College returned Title IV funds to the Department of Education later than the timeframe required by the program requirements and because of one student?s miscalculation of returned funds, the College sent $367 more to the Department of Education than the required amount. Cause: The College was late in sending the returned funds to the Department of Education for a few of our samples examined because the financial aid office was not made aware certain students were no longer attending the College until after the end of the semester. The calculated dates for return of funds are the last date the student attended the College which meant that the College?s staff would not be informed of the withdrawal until after the 45 days was lapsed. All three of these instances had money transferred within 45 days of the semester end. The incorrect calculation of the one student occurred when there was a change in the student?s status of loan funds awarded; the change was not updated appropriately in the College?s system (Colleague), which resulted in the incorrect calculation. Auditor?s Recommendations: We recommend that the College ensure that the professors inform the financial aid office as soon as a student is no longer attending classes so that the College can ensure they send the Return of Title IV funds within the required 45 days and that when calculating the return of funds, the staff review to ensure they have taken into account all changes of the student status. Agency Response: Management agrees with this finding to meet compliance with the 45 day return of Title IV funds. ? Financial Aid is running a weekly report to capture all students that have dropped/withdrawn from classes. At the end of the semester (fall, spring or summer), a report is run to identify withdrawals, failed, or incomplete grades to determine if a return of funds calculation is warranted. This became important with the impact of COVID-19 on students which caused disruptions and difficulty in managing course loads. Financial Aid processes had a built in assumption that failed grades were unearned but, in reviewing and updating our processes most failed grades are actually earned. The return of funds has traditionally been calculated with the assumption the student did not earn the failed grade so the mid-point of the term was used for last date of attendance. Financial Aid is updating processes based on actuals and will continue working with Learning on the most efficient methodology to determine if a student has earned a failed grade or has stopped attending during the semester. ? Financial Aid will generate a weekly report to identify student withdrawals utilizing a new reporting tool being implemented late 2021. With the enhanced reporting tool and changes in methodology and process?s, we fully anticipate the return of funds will be calculated and remitted to the Department of Education within the required time. ? The Financial Aid Office has communicated with the Vice-President of Learning about the necessity for proper reporting by faculty with regards to non-attendance reporting and last date of attendance. ? Timeline: Management has already implemented the corrective actions. ? Mindi Schrum, Sr. Director and/or Greg Gallegos, Assistant Director will oversee the implementation of these.
Federal program information: Funding agency: U.S. Department of Education Title: Student Financial Assistance Cluster Assistance Listing number: 84.007, 84.033, 84.063, & 84.268 Award year: July 1, 2021 to June 30, 2022 Compliance Requirement: Special Tests and Provisions Condition: In our testwork over the Return of Title IV funds, we noted the following noncompliance: ? In 3 out of 25 students examined, the College did not return the funds to the Department of Education in the required 45 days after the withdrawal date of the student. ? One student?s calculation of return of funds was incorrect, the amount of funds returned should have been $520 but $887 was returned to the Department of Education. The College did not make complete progress in fiscal year 2022. Criteria: According to 34 CFR 668.173(b), return of Title IV funds are required to be deposited or transferred into the Student Financial Assistance account or electronic fund transfers initiated to the Education Department as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. According to 34 CFR 668.22(g), The institution must return the lesser of (1) the total amount of unearned Title IV assistance to be returned as described above, or (2) an amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of Title IV grant or loan assistance that has not been earned by the student. If, for a non-term program, an institution chooses to calculate the treatment of Title IV assistance on a payment period basis, but the institution charges for a period that is longer than the payment period, ?total institutional charges incurred by the student for the payment period? is the greater of (1) the prorated amount of institutional charges for the longer period, or (2) the amount of Title IV assistance retained for institutional charges as of the student?s withdrawal date. Questioned Costs: None Effect: The College returned Title IV funds to the Department of Education later than the timeframe required by the program requirements and because of one student?s miscalculation of returned funds, the College sent $367 more to the Department of Education than the required amount. Cause: The College was late in sending the returned funds to the Department of Education for a few of our samples examined because the financial aid office was not made aware certain students were no longer attending the College until after the end of the semester. The calculated dates for return of funds are the last date the student attended the College which meant that the College?s staff would not be informed of the withdrawal until after the 45 days was lapsed. All three of these instances had money transferred within 45 days of the semester end. The incorrect calculation of the one student occurred when there was a change in the student?s status of loan funds awarded; the change was not updated appropriately in the College?s system (Colleague), which resulted in the incorrect calculation. Auditor?s Recommendations: We recommend that the College ensure that the professors inform the financial aid office as soon as a student is no longer attending classes so that the College can ensure they send the Return of Title IV funds within the required 45 days and that when calculating the return of funds, the staff review to ensure they have taken into account all changes of the student status. Agency Response: Management agrees with this finding to meet compliance with the 45 day return of Title IV funds. ? Financial Aid is running a weekly report to capture all students that have dropped/withdrawn from classes. At the end of the semester (fall, spring or summer), a report is run to identify withdrawals, failed, or incomplete grades to determine if a return of funds calculation is warranted. This became important with the impact of COVID-19 on students which caused disruptions and difficulty in managing course loads. Financial Aid processes had a built in assumption that failed grades were unearned but, in reviewing and updating our processes most failed grades are actually earned. The return of funds has traditionally been calculated with the assumption the student did not earn the failed grade so the mid-point of the term was used for last date of attendance. Financial Aid is updating processes based on actuals and will continue working with Learning on the most efficient methodology to determine if a student has earned a failed grade or has stopped attending during the semester. ? Financial Aid will generate a weekly report to identify student withdrawals utilizing a new reporting tool being implemented late 2021. With the enhanced reporting tool and changes in methodology and process?s, we fully anticipate the return of funds will be calculated and remitted to the Department of Education within the required time. ? The Financial Aid Office has communicated with the Vice-President of Learning about the necessity for proper reporting by faculty with regards to non-attendance reporting and last date of attendance. ? Timeline: Management has already implemented the corrective actions. ? Mindi Schrum, Sr. Director and/or Greg Gallegos, Assistant Director will oversee the implementation of these.
Federal program information: Funding agency: U.S. Department of Education Title: Student Financial Assistance Cluster Assistance Listing number: 84.007, 84.033, 84.063, & 84.268 Award year: July 1, 2021 to June 30, 2022 Compliance Requirement: Special Tests and Provisions Condition: In our testwork over the Return of Title IV funds, we noted the following noncompliance: ? In 3 out of 25 students examined, the College did not return the funds to the Department of Education in the required 45 days after the withdrawal date of the student. ? One student?s calculation of return of funds was incorrect, the amount of funds returned should have been $520 but $887 was returned to the Department of Education. The College did not make complete progress in fiscal year 2022. Criteria: According to 34 CFR 668.173(b), return of Title IV funds are required to be deposited or transferred into the Student Financial Assistance account or electronic fund transfers initiated to the Education Department as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. According to 34 CFR 668.22(g), The institution must return the lesser of (1) the total amount of unearned Title IV assistance to be returned as described above, or (2) an amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of Title IV grant or loan assistance that has not been earned by the student. If, for a non-term program, an institution chooses to calculate the treatment of Title IV assistance on a payment period basis, but the institution charges for a period that is longer than the payment period, ?total institutional charges incurred by the student for the payment period? is the greater of (1) the prorated amount of institutional charges for the longer period, or (2) the amount of Title IV assistance retained for institutional charges as of the student?s withdrawal date. Questioned Costs: None Effect: The College returned Title IV funds to the Department of Education later than the timeframe required by the program requirements and because of one student?s miscalculation of returned funds, the College sent $367 more to the Department of Education than the required amount. Cause: The College was late in sending the returned funds to the Department of Education for a few of our samples examined because the financial aid office was not made aware certain students were no longer attending the College until after the end of the semester. The calculated dates for return of funds are the last date the student attended the College which meant that the College?s staff would not be informed of the withdrawal until after the 45 days was lapsed. All three of these instances had money transferred within 45 days of the semester end. The incorrect calculation of the one student occurred when there was a change in the student?s status of loan funds awarded; the change was not updated appropriately in the College?s system (Colleague), which resulted in the incorrect calculation. Auditor?s Recommendations: We recommend that the College ensure that the professors inform the financial aid office as soon as a student is no longer attending classes so that the College can ensure they send the Return of Title IV funds within the required 45 days and that when calculating the return of funds, the staff review to ensure they have taken into account all changes of the student status. Agency Response: Management agrees with this finding to meet compliance with the 45 day return of Title IV funds. ? Financial Aid is running a weekly report to capture all students that have dropped/withdrawn from classes. At the end of the semester (fall, spring or summer), a report is run to identify withdrawals, failed, or incomplete grades to determine if a return of funds calculation is warranted. This became important with the impact of COVID-19 on students which caused disruptions and difficulty in managing course loads. Financial Aid processes had a built in assumption that failed grades were unearned but, in reviewing and updating our processes most failed grades are actually earned. The return of funds has traditionally been calculated with the assumption the student did not earn the failed grade so the mid-point of the term was used for last date of attendance. Financial Aid is updating processes based on actuals and will continue working with Learning on the most efficient methodology to determine if a student has earned a failed grade or has stopped attending during the semester. ? Financial Aid will generate a weekly report to identify student withdrawals utilizing a new reporting tool being implemented late 2021. With the enhanced reporting tool and changes in methodology and process?s, we fully anticipate the return of funds will be calculated and remitted to the Department of Education within the required time. ? The Financial Aid Office has communicated with the Vice-President of Learning about the necessity for proper reporting by faculty with regards to non-attendance reporting and last date of attendance. ? Timeline: Management has already implemented the corrective actions. ? Mindi Schrum, Sr. Director and/or Greg Gallegos, Assistant Director will oversee the implementation of these.
Federal program information: Funding agency: U.S. Department of Education Title: Student Financial Assistance Cluster Assistance Listing number: 84.007, 84.033, 84.063, & 84.268 Award year: July 1, 2021 to June 30, 2022 Compliance Requirement: Special Tests and Provisions Condition: In our testwork over the Return of Title IV funds, we noted the following noncompliance: ? In 3 out of 25 students examined, the College did not return the funds to the Department of Education in the required 45 days after the withdrawal date of the student. ? One student?s calculation of return of funds was incorrect, the amount of funds returned should have been $520 but $887 was returned to the Department of Education. The College did not make complete progress in fiscal year 2022. Criteria: According to 34 CFR 668.173(b), return of Title IV funds are required to be deposited or transferred into the Student Financial Assistance account or electronic fund transfers initiated to the Education Department as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. According to 34 CFR 668.22(g), The institution must return the lesser of (1) the total amount of unearned Title IV assistance to be returned as described above, or (2) an amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of Title IV grant or loan assistance that has not been earned by the student. If, for a non-term program, an institution chooses to calculate the treatment of Title IV assistance on a payment period basis, but the institution charges for a period that is longer than the payment period, ?total institutional charges incurred by the student for the payment period? is the greater of (1) the prorated amount of institutional charges for the longer period, or (2) the amount of Title IV assistance retained for institutional charges as of the student?s withdrawal date. Questioned Costs: None Effect: The College returned Title IV funds to the Department of Education later than the timeframe required by the program requirements and because of one student?s miscalculation of returned funds, the College sent $367 more to the Department of Education than the required amount. Cause: The College was late in sending the returned funds to the Department of Education for a few of our samples examined because the financial aid office was not made aware certain students were no longer attending the College until after the end of the semester. The calculated dates for return of funds are the last date the student attended the College which meant that the College?s staff would not be informed of the withdrawal until after the 45 days was lapsed. All three of these instances had money transferred within 45 days of the semester end. The incorrect calculation of the one student occurred when there was a change in the student?s status of loan funds awarded; the change was not updated appropriately in the College?s system (Colleague), which resulted in the incorrect calculation. Auditor?s Recommendations: We recommend that the College ensure that the professors inform the financial aid office as soon as a student is no longer attending classes so that the College can ensure they send the Return of Title IV funds within the required 45 days and that when calculating the return of funds, the staff review to ensure they have taken into account all changes of the student status. Agency Response: Management agrees with this finding to meet compliance with the 45 day return of Title IV funds. ? Financial Aid is running a weekly report to capture all students that have dropped/withdrawn from classes. At the end of the semester (fall, spring or summer), a report is run to identify withdrawals, failed, or incomplete grades to determine if a return of funds calculation is warranted. This became important with the impact of COVID-19 on students which caused disruptions and difficulty in managing course loads. Financial Aid processes had a built in assumption that failed grades were unearned but, in reviewing and updating our processes most failed grades are actually earned. The return of funds has traditionally been calculated with the assumption the student did not earn the failed grade so the mid-point of the term was used for last date of attendance. Financial Aid is updating processes based on actuals and will continue working with Learning on the most efficient methodology to determine if a student has earned a failed grade or has stopped attending during the semester. ? Financial Aid will generate a weekly report to identify student withdrawals utilizing a new reporting tool being implemented late 2021. With the enhanced reporting tool and changes in methodology and process?s, we fully anticipate the return of funds will be calculated and remitted to the Department of Education within the required time. ? The Financial Aid Office has communicated with the Vice-President of Learning about the necessity for proper reporting by faculty with regards to non-attendance reporting and last date of attendance. ? Timeline: Management has already implemented the corrective actions. ? Mindi Schrum, Sr. Director and/or Greg Gallegos, Assistant Director will oversee the implementation of these.