Finding Text
Criteria: Special Tests and Provisions – Return of Title IV Funds (34 CFR 668.173 (b)) – Institutions are required to accurately calculate return of Title IV funds for withdrawn students who began attendance, allocate the return of Title IV funds as required, return Title IV funds timely and notify borrowers of returned loans.
Condition: The College did not perform a timely calculation of Title IV funds or return the Title IV funds within
45 days.
Questioned Costs: None.
Context: During testing of Return of Title IV Funds, one of five selections were not returned within the 45-day period. A sample of five were selected for testing from a population of 49. Our sample selections were not, and were not intended to be, statistically valid.
Effect: The College did not return Title IV funds within 45 days of a student's withdrawal.
Cause: The College’s processes did not ensure Title IV returns for students on leaves of absences were calculated and returned in a timely manner.
Identification as a Repeat Finding, if Applicable: Not a repeat finding
Recommendation: The College should implement procedures to ensure calculations are performed for each withdrawn student and where applicable, funds are returned in the required timeframe.
Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the finding. On July 7, 2024, the calculation was performed and funds were returned the following day. Additional documentation will be included in the student's exit packaging that will be reviewed by the Financial Aid supervisor to determine if a Return of Title IV calculation is warranted. The Business Office will review all accounts of withdrawn students to determine if any federal aid was received and if so, will communciate with the Financial Aid office to verify that calculation was performed.