Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
Assistance Listing Number: 84.063, 84.268
Award Period: June 1, 2023 to May 31, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.22(f)(2)(i), states that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment and the number of calendar days completed in that period.
Condition: During our testing, we noted 3 of the 8 students tested did not have the break of 5 days for Thanksgiving included in their calculation and funds returned to ED that should not have been.
Questioned Costs: $152.06
Context: During our testing, it was noted the College calculated the refund calculation without factoring in breaks of 5 or more days.
Cause: There was a change in the calendar from historical trends
Effect: More aid funds were returned to Department of Education that were supposed to go to the students. It was noted that $124.84 in Pell, $27.22 subsidized loans, and $54.64 in unsubsidized loans were returned when they should not have been.
Repeat Finding: No
Recommendation: We recommend the College update its procedures to identify changes in breaks for purposes of refund calculations.
Views of Responsible Officials: There is no disagreement with the audit finding.