Finding Text
2023-005 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: 34 CFR 668.22 (a)(1) states "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 in accordance with paragraph (e) of this section."
34 CFR 668.22 (e)(2) states, "The percentage of title IV grant or loan assistance that has been
earned by the student is - (i) Equal to the percentage of the payment period or period of
enrollment that the student completed (as determined in accordance with paragraph (f) of this
section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of
60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or..."
34 CFR 668.22(j) notes, "(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days
after the date of the institution's determination that the student withdrew as defined in paragraph
(l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b)."
An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student's account for outstanding charges (34 CFR 668.22).
Condition: Cottey College did not timely and accurately complete refund calculations due to
excluding one extra day in error for Thanksgiving break, which caused the total days to be off by
one day. In review of the calculations the number of days in the break was not calculated
correctly, resulting in the incorrect days in 1 out of 4 return of Title IV funds calculations. As a
result of the incorrect number of days, the amounts of Title IV returned was incorrectly
calculated for 1 out of the population of 4 (25%) withdrawal calculations which resulted in only
$32 being under refunded for one student in the sample. We consider this finding to be an
instance of non-compliance in relation to Special Tests and Provisions and is not a repeat
finding. Statistical sampling was not used in making sample selections.
Questioned Costs: $32
Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect
amounts returned by Cottey College.
Recommendation: We recommend Cottey College continually educate themselves on the
requirements for the return of title IV fund and ensure the proper controls are implemented to
timely and accurately return unearned aid.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.