Finding 1099712 (2024-001)

CRITERIA: 34 CFR part 668 establishes rules governing the student withdrawal process including the return of unearned Title IV aid within 45 days of a student’s withdrawal. CONDITION: Through our Return of Title IV Funds testing, we noted 2 out of 40 selections for which the students began attendance but subsequently withdrew and their unearned title IV funds were not returned within 45 days of the withdrawal date. QUESTIONED COSTS: None. Amounts were returned, just not within 45 day window. CAUSE/EFFECT: The automated Banner reports that detail withdrawn students with federal aid did not include all withdrawn students. As the system report did not include the appropriate details for the student’s withdrawals, as they were either not included in the report or were reported as not receiving federal aid, a return to title IV calculation was not performed. As such, the required return of funds was not calculated timely and the College was not in compliance with the Return of Title IV Funds requirements. RECOMMENDATION: The auditor recommends the College enhance its controls and incorporate multiple individuals in the process to ensure that Title IV refunds are calculated and made timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and has taken steps towards the reassessment of controls, review these accounts and implement controls to ensure that timely calculations and refunds are made.