Finding 1081268 (2024-003)

Finding 2024-003 Return of Title IV Funds Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Direct Student Loans Assistance Listing #: 84.268 Questioned Costs: None Condition We tested one (1) of one (1) (100%) student’s Title IV return calculation, our procedures revealed that the Seminary applied the incorrect completion percentage, as such the calculation was not performed accurately. Criteria Per Title 34, CFR, Section 668.22, during an institution’s payment period or period of enrollment where a student, who has begun attendance and has received Title IV funds, withdraws from the institution then the institution must calculate and determine the amount of Title IV funds the student has earned as of the student’s withdrawal date. If the total amount of Title IV grant or loan assistance earned by the student is less than the amount that was disbursed to the student or on the student’s behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs, and no additional disbursements may be made to the student for the payment period or period of enrollment. The amount of earned Title IV grant or loan assistance is calculated by (1) determining the percentage of Title IV grant or loan assistance that the student has earned and (2) applying that percentage to the total amount of Title IV grant or loan assistance that was or could have been disbursed to the student or on the student’s behalf for the payment period or period of enrollment as of the student’s withdrawal date. Cause The Seminary utilizes a manual calculation Excel sheet for performing Title IV returns calculations. The incorrect completion rate was entered into the Excel sheet. Effect The Seminary returned a total of $26 associated with ALN 84.268, less Title IV funds than required for the student tested in the sample. Recommendation The Seminary should develop their return of Title IV funds calculator further to include more automated (formulas) to ensure that all students are having their return calculations performed using the same methodology as required. In addition, the Seminary’s Finance department should also review and approve any new implementations to the calculator to verify its effectiveness. Views of Responsible Officials The Seminary will use the Return to Title IV Worksheet found in the Federal Student Aid Handbook to ensure calculations are accurate.