Finding 1089438 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-04
Audit: 330866
Organization: West Shore Community College (MI)

AI Summary

  • Core Issue: The College incorrectly calculated return of funds due to not excluding scheduled breaks of five days or more in the R2T4 calculations for the 2023 fall and 2024 spring terms.
  • Impacted Requirements: Compliance with 34 CFR 668.22(f)(2)(i) regarding the treatment of scheduled breaks in enrollment periods.
  • Recommended Follow-Up: Review R2T4 requirements and establish procedures to ensure accurate term day calculations moving forward.

Finding Text

Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Special Tests and Provisions). Programs. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.063 and 84.268; Award Numbers P063P225088 and P268K225088. Criteria. 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 the period of enrollment and the number of calendar days completed in that period. Condition. It was noted during our testing of one R2T4 calculation that the College is not excluding the correct number of days for scheduled breaks of five days or more in both the 2023 fall and 2024 spring terms. Thus, calculations performed for the 2023 fall and 2024 spring terms were determined to be inaccurate. Cause. Incorrect break days were used in the calculation due to an error in the entering of the College's academic schedule information into the PowerFAIDS system, resulting in incorrect dates being used in the preparation of refund calculations within the system. Effect. As a result of this condition, the students' return of funds calculation was not done correctly and the return of funds back to the federal government was for the incorrect amount. Questioned Costs. No costs are required to be questioned as the amounts did not exceed the reporting threshold. Recommendation. We recommend the College review the R2T4 requirements and implement procedures to ensure the R2T4 calculations are using the correct amount of term days. View of Responsible Officials. Management concurs with this finding and has prepared a Corrective Action Plan.

Categories

Special Tests & Provisions Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 512995 2024-001
    Significant Deficiency
  • 512996 2024-001
    Significant Deficiency
  • 1089437 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.39M
21.027 Coronavirus State and Local Fiscal Recovery Funds $280,148
84.268 Federal Direct Student Loans $273,099
84.048 Career and Technical Education -- Basic Grants to States $96,128
84.007 Federal Supplemental Educational Opportunity Grants $50,630
84.033 Federal Work-Study Program $47,184