Audit 8234

Finding 2023-001: Special Tests and Provisions - Return of Title IV Funds Federal Program - Federal Direct Student Loans Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable ALN Number - 84.268 Federal Award Year - June 30, 2023 Criteria: Title IV regulations (34 CFR 668.22) require that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the student's withdrawal date. Condition/Context: For one of four students tested, the earned portion used to determine the amount refunded was incorrect. There was a total of 37 students who withdrew during the year. Of these, 26 were eligible for refunds. The sample was not a statistically valid sample. Cause: The College used incorrect start and end dates for the fall 2022 semester for this student when calculating the days earned. Effect: The use of the wrong number of days in the refund calculation resulted in a lower earned portion than actual. As a result, an excess refund of $182 to the Title IV program was made. Questioned Costs: None. Recommendation: We recommend the College require a second individual review all calculations for accuracy.

Finding 2023-002: Material Weakness - Special Tests and Provisions - Disbursements to or on Behalf of Students Federal Program - Federal Direct Student Loans Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable ALN Number - 84.268 Federal Award Year - June 30, 2023 Criteria: Title IV regulations (34 CFR 668.165(a)(2)) states "if an institution credits a student ledger account with Direct Loan, Federal Perkins Loan or TEACH grant program funds, the institution must notify the student or parents of (i) the anticipated date and amount of the disbursement; (ii) the student's or parent's right to cancel all or a portion of that loan, loan disbursement, TEACH Grant or TEACH Grant disbursement and have the loan proceeds or TEACH Grant proceeds returned to the Secretary; and (iii) the procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, loan disbursement, TEACH Grant or TEACH Grant disbursement." Condition/Context: None of the 25 students tested received the required notification. The sample was not a statistically valid sample. Cause: The College did not have a process in place to ensure notifications were sent during the period under audit. Effect: No student received the required notification. Questioned Costs: None. Recommendation: We recommend the College implement a process to ensure required notifications are sent. Proof of sent notifications should be reviewed by a second person to ensure completeness.

Finding 2023-001: Special Tests and Provisions - Return of Title IV Funds Federal Program - Federal Direct Student Loans Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable ALN Number - 84.268 Federal Award Year - June 30, 2023 Criteria: Title IV regulations (34 CFR 668.22) require that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the student's withdrawal date. Condition/Context: For one of four students tested, the earned portion used to determine the amount refunded was incorrect. There was a total of 37 students who withdrew during the year. Of these, 26 were eligible for refunds. The sample was not a statistically valid sample. Cause: The College used incorrect start and end dates for the fall 2022 semester for this student when calculating the days earned. Effect: The use of the wrong number of days in the refund calculation resulted in a lower earned portion than actual. As a result, an excess refund of $182 to the Title IV program was made. Questioned Costs: None. Recommendation: We recommend the College require a second individual review all calculations for accuracy.

Finding 2023-002: Material Weakness - Special Tests and Provisions - Disbursements to or on Behalf of Students Federal Program - Federal Direct Student Loans Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable ALN Number - 84.268 Federal Award Year - June 30, 2023 Criteria: Title IV regulations (34 CFR 668.165(a)(2)) states "if an institution credits a student ledger account with Direct Loan, Federal Perkins Loan or TEACH grant program funds, the institution must notify the student or parents of (i) the anticipated date and amount of the disbursement; (ii) the student's or parent's right to cancel all or a portion of that loan, loan disbursement, TEACH Grant or TEACH Grant disbursement and have the loan proceeds or TEACH Grant proceeds returned to the Secretary; and (iii) the procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, loan disbursement, TEACH Grant or TEACH Grant disbursement." Condition/Context: None of the 25 students tested received the required notification. The sample was not a statistically valid sample. Cause: The College did not have a process in place to ensure notifications were sent during the period under audit. Effect: No student received the required notification. Questioned Costs: None. Recommendation: We recommend the College implement a process to ensure required notifications are sent. Proof of sent notifications should be reviewed by a second person to ensure completeness.