Finding Text
Criteria: Per 34 CFR 668.173 (b), an institution returns unearned Title IV program funds timely if the funds are transferred no later than 45 days after the institution determines that the student withdrew.
Condition/context: Of the 12 students selected for testing, one student’s unearned aid was not returned to the U.S. Department of Education within 45 days of the date the institution determined that the student withdrew.
Cause: The College did not have a process in place to monitor and review official and unofficial withdrawals and ensure that a return of Title IV funds calculation had been performed for all withdrawn students and that unearned Title IV aid was returned to the U.S. Department of Education timely.
Effect: If the College fails to comply with the terms and conditions of a Federal award, the Federal awarding agency may impose additional conditions, as described in 2 CFR 200.208, or implement other remedies for noncompliance, as described in 2 CFR 200.339.
Questioned costs: None.
Identification as a repeat finding: No.
Recommendation: The College should develop, implement, and maintain a system to review students for withdrawal on a timely and consistent basis in order to properly determine withdrawal dates and return unearned Title IV aid in a timely manner.
Views of responsible officials: Management concurs with the finding. See Exhibit I for the corrective action plan.