Finding Text
Finding 2024-002: Student Financial Assistance Cluster – Refunds of Title IV Funds – Special Tests & Provisions
Federal Agency: U.S. Department of Education
Program: Student Financial Assistance Cluster (84.007, 84.033, 84.063, 84.268)
Criteria: In accordance with 34 CFR 668.221, 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 aid earned by the student as of the student’s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV program within 45 days of the date of withdrawal.
Condition: We examined 12 students who had withdrawn from the institution during a payment period or period of enrollment in which the recipient began attendance to ensure that the calculation and return of Title IV funds was done in accordance with 34 CFR 668.221. We noted that for one student who officially withdrew as of July 1, 2024, the calculation related to the return of Title IV funds was not done until October 7, 2024 and the return of funds did not occur until October 16, 2024. Controls in place were not operating effectively to ensure calculations and return of Title IV funds were done in the required time frame as outlined in 34 CFR 668.221.
Cause: The College's process to identify students whose withdrawal requires a calculation of the return of Title IV funds is a manual process. The College does not have a process in place to verify that all students are identified and that all calculations and return of funds were done timely.
Effect: The College had 1 student whose calculation and return of Title IV funds was not completed within the required timeframe and potentially could have additional students whose calculation and return of Title IV funds was also not completed timely.
Repeat Finding: This is not a repeat finding.
Questioned costs: Unknown
Recommendation: We recommend that the College follow procedures in place to ensure all students who have withdrawn and require a calculation and potential return of Title IV funds are identified timely so that return of Title IV funds may be completed as required.
View of Responsible Officials and Planned Corrective Action:
Management agrees, see separate Corrective Action Plan.