Audit Period:
June 20, 2022
The finding from the June 30, 2022 Schedule of Findings and Questions Costs is discussed below. The Corrective Action Plan does not include the corrective actions for our discreetly presented component unit, Luna Community College Foundation (LCC Foundation). LCC Foundat...
Audit Period:
June 20, 2022
The finding from the June 30, 2022 Schedule of Findings and Questions Costs is discussed below. The Corrective Action Plan does not include the corrective actions for our discreetly presented component unit, Luna Community College Foundation (LCC Foundation). LCC Foundation does not have federal funds in excess of $750,000. The finding is numbered consistently with the numbers assigned in the schedule.
FEDERAL PROGRAM INFORMATION:
2022-005 – Return of Title IV Funds (Other Non-Compliance)
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 test work over the Return of Title IV funds, we noted the following noncompliance: In 3 out of 9 students examined totaling $1,733, the College did not return the funds to the Department of Education in the required 45 days after the withdrawal date of the student.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 of Department as soon as possible, but no longer than 45 days after the date the institution determines that the student withdrew.QUESTIONED COSTS: None
EFFECT: The College returned Title IV funds to the Department of Education later than
the timeframe required by the program requirements.
CAUSE: The College was late in sending the returned funds to the Department of
Education for a few of our samples examined because the City of Las Vegas was
under a fire emergency due to Calf Canyon/Hermit Peak Fire. Upon return to the
College offices, it was noted some of the funds to be returned to the Department of
Education had not been processed.
RECOMMENDATIONS: We recommend that the College policies and procedures to
ensure that it regularly checks any student withdrawals and ensure that they send the
Return to Title IV funds within the 45 day requirement.
MANAGEMENT’S RESPONSE: The College acknowledges the auditors' comments and
has taken steps to address the findings. The college’s Financial Aid department has experienced key staff turnover. In FY23, the college contracted with Attain Partners, a
third-party service provider, to enhance our policies and procedures, ensuring
alignment with best practices and compliance requirements. Attain, with college staff,
are conducting a thorough review of the processes used by the Registrar, Bursar, and
Financial Aid Office to improve coordination and the timely reporting of R2T4s.
RESPONSIBLE PARTY/TIMELINE TO CORRECT: The Return to Title IV (R2T4) policy and procedures will be updated as necessary to remain current, and all staff will be
informed of any revisions. The Interim Vice President of Student Services and the
Interim Chief Financial Officer, working with Attain contractors, will review and update R2T4 policies by September 30, 2024. Due Date of Completion: September 30, 2024
Responsible Party: Dr. Loretta Montoya
If the U.S. Department of Education has questions regarding this plan, please call me at 505-235-1755.
Respectfully,
Loretta Montoya
Dr. Loretta Montoya
Interim CFO