Finding 1094920 (2024-002)

Inaccurate Return of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, and 84.007 Federal Award Identification #: 2023-2024 Award Year Condition: Return calculations were not done correctly consistently, particularly in the Fall 2023 semester. Criteria: 34 CFR 668.22 Questioned Costs: $494 Context: Out of 5 withdrawn students, 3 students who withdrew during the audit period tested had incorrect R2T4 calculations. All initial calculations and returns had been performed timely. The system calendar set up for the Fall 2023 semester was done incorrectly leading to the three incorrect calculations. Additionally, two students did not have Federal Supplemental Educational Opportunity Grant (FSEOG) included in the R2T4 calculation, which resulted in total under returns of $438 of Pell and $55 of FSEOG. The third student was only affected by the calendar setup and had an over return of Subsidized Loan in the amount of $22. A full file review was conducted by the College and all students were corrected. Cause: The system calendar setup for the Fall 2023 term was not done correctly, and the exclusion of FSEOG in the R2T4s was an oversight by the College. Effect: Returns of Title IV funds were not performed accurately. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend an individual with appropriate return calculation knowledge review each system set up to ensure the system is functioning as intended, as well as review R2T4 calculations and returns to ensure accuracy and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.