Finding 1073711 (2022-005)

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Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-09-18
Audit: 319874
Organization: Luna Community College (NM)

AI Summary

  • Core Issue: The College failed to return Title IV funds for 3 out of 9 students within the required 45 days after withdrawal.
  • Impacted Requirements: This noncompliance violates 34 CFR 668.173(b), which mandates timely processing of fund returns.
  • Recommended Follow-Up: Implement regular checks on student withdrawals and ensure compliance with the 45-day return requirement.

Finding Text

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.

Categories

Student Financial Aid

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.02M
84.425 Education Stabilization Fund $193,250
93.107 Area Health Education Centers $62,231
84.022 Overseas Programs - Doctoral Dissertation Research Abroad $57,994
84.007 Federal Supplemental Educational Opportunity Grants $31,492
84.033 Federal Work-Study Program $13,648
84.048 Career and Technical Education -- Basic Grants to States $8,416
84.268 Federal Direct Student Loans $4,790